Virgin Australia's preferred buyer – US private equity firm Bain Capital – plans to pare back the airline, cut high-end comforts for flyers and relaunch with about half its existing fleet as early as September.

Airport lounges and expensive food will be among the first features to go at Virgin Australia 2.0. However, the carrier is likely to retain its branding after Josh Bayliss, chief executive of the British-based Virgin Group, committed to work with Bain after administrator Deloitte made their decision on Friday.