Virgin Australia intends to cut its workforce by a third with around 3,000 jobs expected to go.
New owners Bain Capital will retain 6,000 staff to capitalise on the recovery in travel with hopes to add another 2,000 to the ranks in the long term.
“Demand for domestic and short-haul international travel is likely to take at least three years to return to pre-COVID-19 levels, with the real chance it could be longer, which means as a business we must make changes to ensure the Virgin Australia Group is successful in this new world,” said Virgin Australia chief executive Paul Scurrah.
“Working with Bain Capital, we will accelerate our plan to deliver a strong future in a challenging domestic and global aviation market.
“We believe that over time we can set the foundations to grow Virgin Australia again and re-employ many of the highly skilled Virgin Australia team.”
The Tiger Australia brand will also be ditched, although Virgin Australia said it would retain the air operator certificate so it could revive a low-cost carrier when the domestic travel market fully recovered.