Virgin Australia drops all flights from Melbourne to Hong Kong and scraps all routes from Sydney to Christchurch after losing $ 350 million this year
- Virgin Australia reported losses of $ 350 million in August this year
- To save money, the airline will cut its routes from Melbourne to Hong Kong
- Other routes to be deleted are Sydney to Christchurch in New Zealand
Virgin Australia has cut back on international and domestic flights in an effort to save money after the company has announced losses of $ 350 million this year.
The country's second largest airline is dropping its flights from Melbourne to Hong Kong and Sydney to Christchurch as part of the cost-saving exercise.
The airline announced the plan to save on two percent and remove unprofitable routes on Tuesday.
Virgin Australia has announced changes to its fleet and network, with plans to cut back on international and domestic flights from December (Pictured: Boeing 737-800 Virgin Australia planes)
Virgin Australia will also stop Canberra to Perth and Gold Cost to Perth from December.
Meanwhile, the low-cost airline Tigerair runs the routes from Brisbane to Darwin, Adelaide to Brisbane and Proserpine to Sydney.
Virgin Australia Group CEO and Managing Director, Paul Scurrah, said the changes focus on capacity management.
& # 39; We maintain a strong network of destinations and it is important that our schedule continues to reflect the demands of our business and leisure customers, & # 39; said Mr. Scurrah.
& # 39; Some of today's changes respond to the changing demand on some routes, and others are about refocusing Virgin Australia and Tigerair Australia on the destinations we think are the most suitable. & # 39;
Virgin Australia Group CEO and Director, Paul Scurrah (photo), said the changes focus on capacity management
The Melbourne to Hong Kong route will be suspended from 11 February 2020, but a daily service from Sydney to Hong Kong will continue.
The airline will start a service from Brisbane to Tokyo in 2020 and a route from Melbourne to Denpasar (Bali).
The Virgin network will also reduce its Auckland to Sydney flights from 19 per week to 15 flights per week.
Flights between Tamworth and Sydney are also reduced from two flights per day to just six per week.
Mr. Scurrah said: "The demand for the Hong Kong route has declined in line with the political landscape and we think that this can now best be served through a single daily Sydney-Hong Kong service." ;
& # 39; The Airbus A330 currently operating the Melbourne-Hong Kong services will be re-deployed on our daily flights to Brisbane-Haneda from March 2020, where we expect strong demand. & # 39;
The cutbacks are the result of saying goodbye to two of Tigerair's A320 & # 39; s reducing the fleet to 13 aircraft, while three regional jets from Virgin Australia Fokker 100s are also leaving the fleet.
Virgin Australia has announced plans to scrap 750 jobs by the end of August to save $ 75 million in costs per year.
The company suffered a $ 350 million loss in the year until June, blaming the weak Australian dollar.
The airline is also dropping the Sydney to Christchurch (photo) service in an effort to save money
The company has now lost money for seven consecutive years, with total losses of $ 1.9 billion.
Mr. Scurrah blamed weak demand, higher fuel costs and a weaker currency for the company's losses.
Mr. Scurrah said that millions of dollars have been used to pay the extra fuel costs that the airline has charged.
Despite the losses, he swears that it would still be the same airline that Australians like to fly with.
& # 39; No matter what happens, we'll still see the discounted tickets on the market. We'll just balance that mix to get the higher-yielding front end of the plane so we can make money & # 39 ;, he said the publication.
& # 39; Virgin as a brand is one of the strongest you want to work with. It allows us to compete with Qantas in the markets and routes that we compete with. & # 39;
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