Virgin eyes return to 80% of pre-Covid capacity

A year after its collapse, Virgin Australia is well down the path of rebuilding as a mid-market airline.

Virgin Australia CEO Jayne Hrdlicka sees a bright future for the airline a year after the company collapsed. Picture: Lyndon Mechielsen

A year on from administration, Virgin Australia is well down the path of rebuilding as a “mid-market” carrier with a value for money proposition for travellers.

Gone are the turboprops that formed the backbone of the airline’s regional operation, the long-haul international business and budget partner Tigerair.

Gone are the free snacks in economy, in-flight Wi-Fi, and the exclusive VIP lounge The Club, at least for now.

In their place are lower airfares, improved technology and a more accessible business class, along with a profit-focused management aiming to steer Virgin Australia out of the red for the first time in nine years.

A fleet of 58 Boeing 737s will be bolstered in coming months with another ten aircraft being leased by the carrier, as it struggles to keep pace with the booming demand for domestic travel.

By June, CEO Jayne Hrdlicka expected to be back to 80 per cent of pre-COVID capacity, with more than 1000 flights in the air a week.

“More aircraft means more flying, and with easing travel restrictions, there are more opportunities to further support domestic tourism and the nation’s economic recovery from COVID-19,” Ms Hrdlicka said.

There have been a number of missteps by the airline creating opportunities for rivals Qantas and Rex, such as the deferral of the Sydney-Canberra route and trans-Tasman travel.

Qantas Group CEO Alan Joyce also points out about 30 corporate customers of Virgin Australia have jumped ship to the flying kangaroo in the wake of the airline’s repositioning.

He is content to see Rex and Virgin fight it out for the middle ground, leaving the premium end of the market to Qantas, and the budget sector to Jetstar.

But Ms Hrdlicka remains focused on turning the Virgin into Australia’s “most loved” airline, carrying on the work of those who built the brand into a serious rival to Qantas.

She notes that since emerging from administration on November 18, 2020, Virgin Australia had introduced a fresh buy-on-board menu for economy passengers, retained three domestic seating options and invested in technology to improve the customer experience.

The airline was currently in the process of hiring cabin crew, with about 150 needed for additional aircraft, after cutting a third of the workforce, from 9000 to 6000.

A Virgin Australia spokesman said the now 20-year-old airline had “earned its place as part of the fabric of Australia’s aviation industry”.

“We’ve been a force for good in the community, and an employer of choice for many thousands of people, both directly and indirectly across Australia,” he said.

“We are focussed on our guests and delivering experiences they love into the future. Today, we have acknowledged and reflected on the extraordinary impacts the pandemic has had on them, and on our people, who continue to contribute and help to rewrite a new chapter for the Virgin Australia Group.”

Originally published as Virgin eyes return to 80% of pre-Covid capacity