Virgin Australia reported (26-Feb-2020) the following coronavirus demand impacts and mitigation strategies for its domestic services:
- Domestic demand impact:
- Potential AUD15 million (USD9.9 million) impact on Tigerair Australia, with a potential AUD35 million (USD23.1 million) to AUD40 million (USD26.4 million) impact on Virgin Australia Domestic;
- Impact of international Chinese inbound cancellations, with domestic demand impacted by bushfires and low GDP growth;
- Domestic mitigation strategies:
- Fast tracking exit of Tigerair Australia A320 fleet to facilitate all Boeing 737 fleet by Oct-2020, with capacity reductions into FY2021;
- Reduced short term capacity into significantly impacted domestic markets, including Cairns;
- Continued focus on cost out initiatives. [more - original PR]