Virgin Australia has unveiled plans for its future under new owners Bain Capital.
The airline says it is confident it will be able to keep two-thirds of its 9000 staff employed but about 3000 will lose their jobs.
It will also scrap budget carrier Tigerair and suspend long haul international flights until the global travel market recovers.
Virgin Australia will streamline its fleet, moving to all-Boeing 737s and removing its ATR, Boeing 777, Airbus A330 and Tigerair Airbus A320 aircraft. The airline's regional and charter fleet will remain
The airline, which went into voluntary administration in April with debts of $6.8 billion, was bought out by the US private equity firm last month.
Virgin Australia said in a statement it was committed re-establishing itself as an "iconic Australian airline" while focusing on the company's core strengths.
Virgin Australia Group CEO and Managing Director Paul Scurrah said the impact of the COVID-19 pandemic on travellers meant Australian airports recorded passenger numbers less than three per cent of last year.
"Demand for domestic and short-haul international travel is likely to take at least three years to return to pre-COVID-19 levels, with the real chance it could be longer, which means as a business we must make changes to ensure the Virgin Australia Group is successful in this new world," Mr Scurrah said.
Managing Director of Bain Capital, Mike Murphy, said in a statement: "We have worked closely with Virgin management since the binding agreement was signed to develop this strategy together for a stronger, more profitable and competitive Virgin Australia.
"In the context of the toughest aviation market dynamics in history, we are fully supportive of management's plans to preserve as many roles as possible as we help reset the airline for long term sustainable success."
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