SYDNEY Virgin Australia Holdings Ltd plans to cut a third of its workforce as part of a review to focus on being a short-range Boeing Co 737 operator under possible new owner Bain Capital.
Virgin said Wednesday that the 3,000 jobs will disappear as the carrier unloads its fleets of Boeing 777, Airbus SE A330 and ATR turboprops, as well as low-cost brand Tigerair Australia and its A320s.
“Our initial focus will be to invest in Virgin Australia's national and international short-haul core operation in conjunction with our 10 million member Velocity frequent flyer program, and continue to offer an extensive network of destinations, a network of national salons and a good value for money for customers, "Chief Executive Paul Scurrah said in a statement.
Virgin's board selected Bain as the winning bidder in late June for an auction that followed the airline's entry into voluntary administration in April.
Creditors, who are owed about A $ 7 billion ($ 5 billion), are due to vote on the sale early next month. Unsecured bondholders have said they will propose an alternative debt-for-equity swap, which will also be voted on at the meeting.
A settlement would require the approval of at least 50% of creditors by both value and number. Employees are ranked as the largest creditors by number at around 9,000, followed by around 6,000 bondholders.
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