Virgin Australia Expects to Move to Profitability in Fiscal 2016
There may be some good news for the Virgin Australia Holdings Ltd's share holders as in its first half earnings report, the airline said it expected to bounce back to profitability by 2016 June. That will be the first profit for the airline company in the last four years. It is heavily counting on the shift of many long-haul routes to its Tigerair subsidiary which is its low cost subsidiary. It is expected turn around the international losses.
John Borghetti, the CEO of Virgin Australia said that the carrier showed a noteworthy improvement in its fiscal 2015 performance. That mirrors the positive course of the business in overall terms according to him.
Last October, Virgin took entire ownership of Tiger Airways Holdings Ltd which is now known as Tigerair Australia. Virgin plans to shift many of its Bali routes to the low fare subsidiary from its mainline carrier.
The airline said in a statement to the Australian Stock Exchange, it will stop some of its flights that link Perth and Phuket. Instead, it will add some flights to Fiji, New Zealand and the Solomon Islands.
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