Global Recession Bites at Virgin Blue

Virgin Blue, the Australian low-cost carrier has grounded five of its 180-seat Boeing 737-800s and cancelled 28 daily flights from its schedule of around 300. A spokesman for the Australian carrier said: “The reductions are a prudent interim capacity management plan necessitated by the continuing deterioration in domestic demand.”
Virgin Blue is keen to emphasize that it has not withdrawn from any of its destinations with the move, but has consolidated services instead. As a result of the cutback, 400 of the company’s employees will be offered either unpaid leave, job sharing and/or shorter hour options until passenger numbers improve.