Virgin Australia returns a third of its Boeing 737 fleet under Bain Capital

On Wednesday, Virgin Australia Holdings Ltd (VAH.AX) announced that it would return a third of its fleet of Boeing Co (BA.N) 737 planes to lessors and financiers as part of a restructuring deal under its new owner Bain Capital.

“With the changes to simplifying our fleet and ongoing subdued customer demand, we have been required to make some adjustments to our network. Once demand returns, it remains our goal to grow our fleet to 75 Boeing 737 aircraft. We will continue to review our network as travel restrictions ease and demand returns,” Virgin Australia’s spokesperson said in an interview.

Qantas Airways Ltd (QAN.AX) said last month that it expected its domestic market share to rise to 70% from its pre-pandemic level of 60% as the market recovers because Virgin is reducing the size of its fleet.

However, Virgin Australia’s Chief Executive Officer Paul Scurrah said last week that the airline expected to lose its domestic share to Qantas as it exited unprofitable routes.

According to both airline companies, they would start to operate under skeletal domestic schedules due to Australian state border restrictions.