TRAVEL JOBS LOST, MORE FLIGHTS CUT
VIRGIN Australia is likely to cut more domestic flights and regional airline Rex will only operate passenger services in Queensland as a virus-spooked nation bunkers down amid new travel and trading restrictions.
Travel firm Helloworld has meanwhile announced it will be sacking 275 people across its global network, while it will stand down another 1300 workers from 5pm tonight for at least the 10 weeks to June.
That’s 65 per cent of the company’s workforce.
Air and travel firms have been among the hardest hit by the coronavirus pandemic as demand plummets amid government-imposed bans and calls for increased social isolation measures.
Virgin yesterday said it expects its domestic schedule to suffer a material impact as a result of new federal and state government travel restrictions at the weekend.
The beleaguered airline will provide more information in the coming days.
Virgin has already reduced domestic capacity across Virgin and Tigerair brands by 50 per cent and ceased its international operations in response to tightening quarantine measures.
Ratings agency Moody’s on Friday downgraded Virgin’s credit rating to B3 from B2 and placed it on review for further downgrade.
Meanwhile, regional airline Rex yesterday announced the cessation of passenger services in all states but Queensland.
Rex — which was already preparing for a 45 per cent reduction in capacity — said its passenger operations will halt everywhere but in Queensland from April 6 unless federal and state governments are willing to underwrite the losses.
Rex deputy chairman John Sharp said government’s $715 million rescue package for airlines last week would only cover a tenth of the $10 million monthly losses Rex expected if it were to maintain a reduced schedule.
Flight Centre meanwhile entered a voluntary trading suspension until at least March 30 as it works through the continued impact on its business.
The company yesterday cancelled its interim dividend to shareholders that was due in April.