Virgin Australia looks set to cut basic fares and start charging fees for items like checked baggage and food under new chief executive Jayne Hrdlicka, prompting a wider industry shake-up as the country's airlines reawaken from the coronavirus crisis.
Virgin, which entered voluntary administration in April, is repositioning itself in a mid-market spot under new owner Bain Capital as it looks to weather ongoing low demand from the pandemic. Corporate fares are more likely to be all-inclusive, but Virgin plans to reduce its airport lounge network and will no longer attempt to match Qantas' premium product when it unveils its new offering in around two weeks, according to a company source who said the details were not finalised. Virgin and Bain declined to comment.