Breaking News: Virgin Australia is suspending all flights, except for a lone Melbourne-Sydney route.
“Since our last capacity reduction announcement we have seen demand all but dry up, and our load factors are very low”, Stuart Aggs, Virgin Australia’s Chief Operations Officer, has written to staff in an internal email sighted by Executive Traveller.
The Virgin Australia flight suspension will remain in place until at least Monday 15 June.
“As you know, we are doing everything we can to preserve our cash balance, and given we are seeing little to no demand on our existing skeleton schedule, it is appropriate that we reduce our capacity further.”
“As soon as demand returns and the border restrictions are relaxed, we stand ready to ramp back up to demand, which I know everyone is keen to do,” Aggs ended.
The airline is facing imminent collapse as it faces an almost non-functioning airline industry.
Virgin is running some international flights arranged by the Federal Government to repatriate Australians stuck overseas during the COVID-19 crisis.
The Sydney-Melbourne route is the second busiest city to city route in the world.
That route will run once per day, but not on Saturdays.
Virgin Australia is asking for a massive taxpayer funded bailout. The airline, owned by a consortium of foreign entities, is looking for a $1.4 billion bailout.
A spokesperson for Virgin Australia said the airline would continue to monitor passenger numbers and adjust their capacity requirements as necessary.
“As a result of government restrictions, less people are travelling and we have made changes to our schedules to reflect this,” they said.
“We continue to operate a daily service between Melbourne and Sydney, provide cargo transport locally and overseas, and operate charter flights including assisting the Government in bringing Australians home.”
This story first appeared at Sydney News