‘Tough market’ forces Virgin Australia to cut five domestic Tigerair services

Five Tigerair domestic services are being cut from late April including routes from Adelaide to Sydney, as parent company Virgin Australia prepares to absorb a $75 million hole in its bottom line caused by the coronavirus outbreak.

The five routes impacted include Melbourne-Coffs Harbour; Sydney-Coffs Harbour; Adelaide-Sydney; Sydney-Cairns; and Hobart-Gold Coast.

Overall, group network capacity will be reduced by three per cent in the airline groups second half of the financial year, with Virgin also bringing forward the retirement of seven Airbus A320 planes from its Tigerair stable, moving the budget carrier to an all-Boeing 737 fleet.

“There’s no doubt we are operating in a tough market, and we need to make sure our capacity deployment is disciplined to ensure our routes are profitable for our business,” said Virgin Australia Group CEO Paul Scurrah.

“Coronavirus is having a significant impact on the travel industry and these changes will help us manage the changes we’re seeing in demand.

“We maintain a very strong network of more than 450 destinations between us and our partners and, whilst we have made some announcements to manage costs today, we are as focused as ever on continuing to deliver a great experience for our customers.”