Virgin Australia will pull out of the underperforming Melbourne-Hong Kong route, freeing up an aircraft to service the airline’s new Brisbane-Tokyo route from March.
Addressing the company’s annual general meeting for the first time, CEO Paul Scurrah also revealed plans to reduce domestic capacity by 2 per cent, by getting the balance right between Virgin Australia and low cost partner Tigerair.
“There are many instances where we have both aircraft operating on the same routes at the same time,” Mr Scurrah said.
“For example, we’re looking to focus Virgin Australia on routes that have a business and leisure orientation. We’re also looking to refocus Tigerair flights on key holiday destinations.”
He said other changes would see the airline exit uneconomic routes and select more profitable ones.
“On this note we are announcing the suspension of Melbourne to Hong Kong. This route has continued to underperform in line with the political landscape and we feel it’s best served through Sydney,” said Mr Scurrah, alluding to the impact of months of political turmoil in the Chinese territory.