Virgin Australia restructure to phase out Embraer E190 fleet, reduce ATR72 fleet; cut jobs; raise $1 billion capital

VH-ZPB Embraer 190AR (ERJ-190-100IGW) (MSN 19000162) of Virgin Australia, named ‘Bicheno Beach’, at Perth Airport - Wed 16 July 2014. Flight VA1487 to Broome, taking off from runway 21 at 15:26. Photo © David Eyre
VH-ZPB Embraer 190AR (ERJ-190-100IGW) (MSN 19000162) of Virgin Australia, named ‘Bicheno Beach’, at Perth Airport – Wed 16 July 2014.
The entire E190 fleet is to be withdrawn over the next three years. Photo © David Eyre
VH-FVZ ATR 72-600 (ATR72-212A) (cn 1087) of Virgin Australia Regional Airlines (leased from Avation PLC), named “Angourie Beach” at Perth Airport – Wed 5 June 2013 **FIRST VISIT TO PERTH** This ATR72 is new and arrived the previous night at 20:58hrs from Jakarta-Halim, on its delivery flight from France.  Flight routing was Toulouse (France) to Borg El Arab (Alexandria, Egypt) – Al Ain (UAE) – Nagpur (India) – Penang (Malaysia) – Jakarta-Halim (Indonesia) – Perth. The aircraft was flown by a crew from South Cross International using callsign 'SXI-1325'. After some pre-service maintenance work, it will be delivered for service in the Eastern States. Photo © Wilson
VH-FVZ ATR 72-600 (ATR72-212A) (cn 1087) of Virgin Australia Regional Airlines (leased from Avation PLC), named ‘Angourie Beach’ at Perth Airport – Wed 5 June 2013
The ATR72 fleet is to be reduced as part of the restructure. Photo © Wilson

15 June 2016 © David Eyre

Virgin Australia today announced that the airline is cutting costs and raising more than $1 billion to pay down debt.

The cost-cutting includes withdrawing the entire Embraer E190 fleet over the next three years and reducing the size of Virgin Australia Regional Airlines’ ATR72 turboprop fleet.  The Fokker 50 fleet was recently retired and is being sold.

More savings will be gained from improved fleet utilisation, optimisation of the Group’s network, operating efficiencies, maintenance and engineering, as well as in procurement and supply chain. Management jobs will also be cut.

Virgin Australia CEO John Borghetti is planning to use this money to complete the transformation of the airline into a strong rival to Qantas, and to commence flights to China.

Etihad, Singapore Airlines, Richard Branson’s Virgin Group, and more recently, Chinese companies Nanshan Group (which bought most of Air New Zealand’s share) and HNA Group are all major shareholders in Virgin Australia.

 

David Eyre

President, Aviation Association of WA Inc

3 thoughts on “Virgin Australia restructure to phase out Embraer E190 fleet, reduce ATR72 fleet; cut jobs; raise $1 billion capital

  • June 23, 2016 at 11:53 am
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    Hello, ref the withdrawal of the VA E190 fleet, 5 have departed so far as follows..
    VH-ZPD last flt 31/1/16 and to Nashville 02/02/16. ex BNE.
    VH-ZPG last flt 26/02/16 ” ” 27/02/16
    VH-ZPF last flt 28/03/16 ” ” ” 30/3/16
    VH-ZPE last flt 23/04/16 ” ” 26/04/16
    VH-ZPH last flt ?/5/16 ” ” ?/05/16 TB updated.

    mERV cROWE.

    Reply
    • July 19, 2016 at 9:20 pm
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      VH-ZPH is still in service (for now).
      VH-ZPI departed Brisbane on 2 July 2016 via Apia, Honolulu and Van Nuys to Nashville, arriving on 4 July 2016.

      Reply
  • August 30, 2016 at 9:20 pm
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    Hate to see these planes go. Much prefer to fly on E190 than B737.800
    Qantas link operate B717 aircraft which are of a similar size and they are trying to source more of them. Doesn’t seem to make sense to me.
    Port Macquarie will soon have a direct service to Melbourne Essendon Operater by Jetgo with 32 seat Embrauer aircraft. I can’t see why Virgin would not fly E190s starting on a weekly service and develop Port as a tourist destination.

    Next week flying Canberra-Melbourne return on E190s WOW

    Reply

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