Aircraft
Virgin Australia Losses Trigger Management Shakeup
Virgin Australia reports its seventh consecutive annual loss and braces for deep restructuring.

Virgin Australia Holdings announced a series of drastic cost-cutting measures that include axing nearly 8 percent of its workforce and merging three of its business divisions after reporting a seventh consecutive annual loss on Wednesday. CEO Paul Scurrah described the loss, even though it represented a 51 percent improvement over last year’s, as “disappointing” and stressed it underscored the need for change. The overhaul includes a fleet and network review that “will see a tight focus on capacity management going forward,” he said, while not excluding the withdrawal on certain markets deemed uneconomic. The review to improve operational efficiencies and increase aircraft utilization follow the decision, announced April 30, to restructure the group’s Boeing 737 Max order and a 1.5 percent capacity cut in May and June.


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