According to the Sydney Morning Herald, the outbreak affects Virgin Atlantic , and it is still in financial difficulties. Virgin Atlantic decided to significantly reduce its Tiger Airlines flights.
(Picture source: Sydney Morning News)
It is reported that Virgin Atlantic lost 97 million Australian dollars in the second half of last year and 55 million Australian dollars in the first half of last year.
In response to this, Virgin announced that it will cut 7 Tigerair A320 aircraft by October this year, and at the same time, transfer 2 Virgin-operated 737 aircraft to Tigerair, reducing Tigerair's fleet from 13 to 8, which means that Tigerair's fleet will be reduced by more than half in two years.
Virgin CEO Paul Scurrah said the outbreak of the epidemic has severely damaged the tourism industry, causing international and domestic flight demand to drop, with losses of up to $75 million in the second half of the year. "We will take immediate measures to minimize the impact on the group's financial situation."
Earlier this month, Virgin canceled its route in Hong Kong. Virgin said its capacity will fall by 3% in the second half of this year and up to 5% next year. Qantas said last week that it will ground 18 aircraft by the end of May due to the impact of the epidemic, and the crisis is expected to cost it as much as AU$150 million.
(Picture source: " Sydney Morning Herald")
Tiger Airlines will withdraw 5 routes: Sydney to Adelaide , Cairns and Coffs Harbour, Melbourne to Coffs Harbour, Hobart to Gold Coast. With the cancellation of the A320 aircraft, Virgin will save costs by using the single use of Boeing 737.
It is reported that Virgin's revenue increased by 1.5% to AU$3.1 billion, and the available km (a common measure of airline efficiency) increased by 2.5%. Scurrah aims to cut 750 headquarters positions by the end of the year, saving $75 million and cut another $50 million through supplier review.
"Although our revenue and passenger numbers increased in the first half of the year, we are still in the early stages of the transition to low-cost businesses, so the benefits of cost change and further revenue efficiency have not yet been realized."
