Virgin Australia adds 17 new routes after being sold to new owner – with flights from $89 

Back from the dead: Virgin Australia adds 17 new routes after being sold to new owner – with flights from as little as $89

  • The new domestic routes in a one way trip from Sydney to Ballina for just $89 
  • Virgin Australia plans to have nearly 40 aircraft in operation by early August 
  • This is after Bain Capital agreed to purchase the airline for an undisclosed sum 
  • The struggling airline entered administration in April owing creditors $6.8billion 

Virgin Australia has added 17 new routes to its domestic network shortly after the struggling airline was purchased by an American private equity firm. 

The new routes include a one way trip from Sydney to Ballina for $89 and Sydney to Hobart from $139. 

Trips from Brisbane to Proserpine and Adelaide to Sydney are both priced from $135 with plans to have nearly 40 aircraft in operation by early August.

This comes days after Bain Capital agreed with Virgin Australia Holdings Ltd to buy Australia’s second-biggest airline for an undisclosed sum.

Virgin Australia previously entered administration on April 21 owing $6.8billion to more than 15,000 creditors.  

The 17 new domestic routes include a one way trip from Sydney to Ballina for $89 and Sydney to Hobart from $139

Virgin Australia Group chief commercial officer John MacLeod said the airline is excited to resume flights to numerous holiday destinations in Australia as travel restrictions are eased. 

‘We’re pleased to have continued our collaborative effort with the federal government to reintroduce some services as we start to see confidence return,’ Mr MacLeod said. 

‘And as each state and territory comes closer to finalising their plans for the easing of restrictions and the reopening of borders.’

Mr MacLeod said many of the Virgin Australia aircraft have been parked and their staff are prepared to return to the skies. 

‘With the increase in flights we’re announcing today, we’re looking forward to serving our guests as they travel to visit family and friends, or take a well-deserved break,’ he said. 

New safety measures have been introduced to reduce the risks of the coronavirus and to increase people’s confidence in flying again. 

Trips from Brisbane to Proserpine and Adelaide to Sydney are both priced from $135 with plans to have nearly 40 aircraft in operation by early August (pictured: Byron Bay)

Trips from Brisbane to Proserpine and Adelaide to Sydney are both priced from $135 with plans to have nearly 40 aircraft in operation by early August (pictured: Byron Bay)

Bain Capital already has plans to reshape the airline company into a mid-market value service. 

It has also vowed to scrap its high-end airport lounges and half of its fleet while refocusing its flight routes and keeping as many staff as possible.

The fleet size of the airline will be cut in half with the number of planes reduced from 130 to 70. 

The airline’s exclusive and invitation-only lounge, ‘The Club’, is expected to be massively overhauled. 

Bain Capital’s managing director in Australia Mike Murphy said they plan  to strengthen Virgin’s regional services and ensure the airline offers good value for leisure customers while continuing to serve business travellers. 

‘We are determined to see that Australians have access to competitive, viable aviation services for the long term,’ Mr Murphy said.

‘Under our ownership, we will strengthen Virgin’s regional services and ensure the airline emerges offering exceptional experiences at a great value while continuing to service business travellers, as well as those of us travelling for fun or to visit loved ones.’

Virgin Australia has about 9,000 employees and Bain plans to keep 5,000 to 6,000.

Bain’s bid was chosen over a rival offer from Cyrus Capital Partners and a recapitalisation proposal put forward by Virgin Australia bondholders, administrator Deloitte said.   

Bain is using private equity as well as its distressed and special situation funds for the deal, according to Deloitte, which said the deal provided a ‘significant’ injection of capital into the airline.

Bain will inject $600million of cash upfront, $600million to cover travel credits held by customers and $450million to cover employee entitlements.

Virgin Australia previously entered administration on April 21 owing $6.8billion to more than 15,000 creditors

Virgin Australia previously entered administration on April 21 owing $6.8billion to more than 15,000 creditors

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