A low-cost subsidiary of Virgin Australia,Tigerair Australia, has declared the discontinuation of its brand while the parent company will retain its Air Operator Certificate (AOC) to renew operations when the market recovers.
The move came on August 5, 2020, as Virgin Australia announced its shift in focus on domestic and short-haul destinations. The closure of Tigerair was a part of a larger scheme to cut operational costs.
“There is not sufficient customer demand to support two carriers at this time,” stated a press release issued by Virgin Australia, adding that Tigerair’s Airbus A320 aircraft will be removed from operation along with a number of planes operated by the parent company, while Boeing 737-800 will presumably be added to Virgin Australia’s fleet. Tigerair operated 9 A320s and 6 737s.
Tigerair’s customers were notified of the cease of operations on the same day, in a statement which detailed the transfer of their credits into the equivalent amount for use on Virgin Australia operated flights. Immediate closure of Tigerair’s call center was also noted in the document.
Tigerair Australia operated as Virgin Australia’s low-cost subsidiary since 2012. All its operations were suspended with the onset of COVID-19 pandemic in March 2020.