Bain Capital Buys Virgin Australia
Virgin Australia has found a new owner. On Friday, American company Bain Capital agreed with Virgin Australia Holdings Ltd to buy Australia’s second-biggest airline for an undisclosed sum, Australian Financial Review reports.
Bain Capital is expected to cut routes and staff when they officially take control of the airline in August. Boston-based private equity firm Bain Capital is expected to to scrap Virgin Australia’s high-end comforts and half of its fleet while saving around 6,000 jobs.
Airport lounges and expensive food will be among the first features to go as Bain Capital tries to reshape Virgin Australia into a mid-market value service. The overall fleet size will go from 130 to 70 planes, with a focus on Virgin’s existing Boeing 737.
“We are determined to see that Australians have access to competitive, viable aviation services for the long term,” said Mike Murphy, Bain Capital’s managing director in Australia.
“Under our ownership, we will strengthen Virgin’s regional services and ensure the airline emerges offering exceptional experiences at a great value while continuing to service business travellers, as well as those of us travelling for fun or to visit loved ones.”
The relaunch could happen as early as September.