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A revamped Virgin Australia will target the "mid-market", and there will be no nasty changes to the airline's Velocity Frequent Flyer program for its 10 million members.


Jayne Hrdlicka, who started in the role of Virgin Australia Group chief executive on Wednesday, has launched a strategic review of the airline's business class offering as well as its in-flight WiFi and entertainment.

It will close lounges in Darwin, Cairns, and Mackay, with the Canberra facility still under review.

And the airline is also reviewing the number of domestic and regional services on offer, with further changes possible once travel bans and state border closures ease.


On Tuesday, Virgin Australia seized the opportunity to be a privately-listed company when the $3.5 billion sale of the Virgin Australia Group, with the shares and the entire business of the airline transferred to Bain Capital, was completed.

Billionaire Richard Branson's Virgin Group has taken a 5 percent stake in the new Virgin Australia, making it the second-biggest shareholder in the Australian airline after Bain.


"I'm delighted that Virgin Australia is ready for take-off once more, soaring out of administration, with a clear future direction to fly towards," Mr. Branson said in a statement.

"We're very optimistic about the future and enormously proud of all of the Virgin Australia team."

Virgin Group chief executive Josh Bayliss said Bain had been a long-term partner on Virgin Voyages.

"Led by Jayne Hrdlicka, we are confident that Virgin Australia's focus on enabling its incredible people to provide an outstanding service for customers will see the airline provide strong competition to Qantas and an exceptional experience for flyers," he said.

Ms. Hrdlicka said while the revamped airline would serve all segments of the market, it would build its proposition around its long-standing and most loyal guests.

These, she said, include price-conscious corporate travelers, small to medium businesses, premium leisure travelers and holidaymakers.


"Virgin Australia will be a mid-market carrier appealing to customers who are after a great value airfare and better service."

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