Virgin Australia to end its daily Cairns-Tokyo service due to reduced inbound visitors from Japan post COVID

WEBWIRE – Friday, July 26, 2024

Virgin Australia will cease operating its once daily flight between Cairns and Tokyo, Haneda from 24 February 2025.The decision to withdraw from the route follows the slow recovery of inbound visitors travelling from Japan to Australia, which remains ~up to 35 per cent below pre-COVID levels*.There are a small number of impacted customers travelling with Virgin Australia to Tokyo from 24 February 2025 and they will be offered a refund of their booking.Virgin Australia customers and Velocity Frequent Flyer members will continue to have access to up to 17 services each week between Australia and Japan with the airlines partner, All Nippon Airways (ANA).Through ANA, Japanese travellers will also continue to have direct access to popular Australian tourist destinations, including Cairns and Far North Queensland, on Virgin Australias extensive domestic network which can be booked on a single ticket from Japan.Virgin Australia will re-deploy its Boeing 737 MAX 8 aircraft that currently operate Cairns-Tokyo services onto domestic routes.Virgin Australia has announced it will cease operating its once daily flight between Cairns and Tokyo, Haneda from 24 February 2025 as a result of factors including the slow recovery of inbound visitors from Japan, which is up to 35 per cent below pre-COVID levels*.

The airline first launched its Cairns-Tokyo, Haneda services in June 2023. However, a below forecast recovery of visitors travelling from Japan to Australia due to sustained weakness in the Japanese Yen, has impacted demand for the services, rendering the route commercially unsustainable.

Impacted customers offered a refund of their booking

There are approximately 2,000 impacted customers travelling with Virgin Australia to Tokyo, Haneda after 24 February 2025. Customers who booked for travel after 24 February via virginaustralia.com will be contacted by email within the next 24 hours to arrange a refund of their booking.

Customers who booked through a travel agency or third-party booking website are encouraged to contact them to request a refund and to make alternative travel arrangements.

Impacted customers should refer to the Virgin Australia Guest Compensation Policy (located on the Virgin Australia website) for further information on their options and a link to Virgin Australias Consumer Guarantees page.

Virgin Australia remains committed to providing guests with great service and value onboard its remaining Cairns-Haneda services until 24 February 2025.

Commentary

Virgin Australia Chief Transformation and Strategy Officer, Alistair Hartley apologised to impacted customers.

Our international network continues to be a central part of our strategy. Withdrawing from Cairns-Tokyo services was a tough decision, but unfortunately the recovery of inbound visitors from Japan is significantly below forecast and therefore operating our own service to Tokyo is no longer commercially viable.

We know this is disappointing news and we are sorry for the impact this decision will have on those guests booked to travel with us from 24 February 2025, said Mr Hartley.

We have a strong partnership with All Nippon Airways (ANA) which will allow us to continue to support inbound tourism from Japan to Australia and through to popular tourist destinations like Far North Queensland. Equally, Virgin Australia customers and Velocity Frequent Flyer members will be able to book seamless flights with ANA from just about anywhere in Australia to Japan directly on our website. We will also continue to provide Velocity Points earn, Rewards Seats and loyalty benefits on eligible ANA flights.

I want to acknowledge and thank the Queensland Government for its partnership in launching our Tokyo services and its ongoing support for Virgin Australia as one of the largest carriers of tourists to the Sunshine State, he said.

Virgin Australia to continue offering Japan flights through All Nippon Airways (ANA)

While Virgin Australia will cease operating its daily flight between Cairns and Tokyo from 24 February 2025, the airline will continue to offer up to 17 flights per week between Australia and Japan through All Nippon Airways (ANA) which can be booked directly on the Virgin Australia website.

The partnership will also continue to play an important role in seamlessly connecting Japanese tourists to popular Australian destinations on the Virgin Australia domestic network, including to Far North Queensland. Virgin Australia operates up to 13 flights into Cairns each day from major Australian cities.

Guests travelling on ANA flights will receive seamless baggage transfer and Velocity loyalty benefits, including Points earn. Similarly, Velocity members will continue to be able to redeem Points for Reward Seats on ANA services. More here.

Improved utilisation of Virgin Australia Boeing 737 MAX 8 aircraft

Virgin Australia will re-deploy its Boeing 737 MAX 8 aircraft that currently operate Cairns-Tokyo services onto our existing domestic schedule.

Virgin Australia has seven fuel efficient Boeing 737 MAX 8 aircraft, with one additional aircraft scheduled to enter the airlines fleet next month.

NOTES TO EDITOR

The decision to withdraw from Cairns-Tokyo services only impacts a small number of Virgin Australia customers (~2,000) who will all be offered a refund of their bookings.ANA is Japans largest airline operating more flights between Australia and Japan than any other Japanese carrier.Virgin Australia has seven (7) fuel-efficient Boeing 737 MAX 8 aircraft in its fleet with one additional new Boeing 737 MAX 8 aircraft scheduled for delivery in August 2024.The depreciation in the value of the Japanese Yen against the Australian Dollar has been consistent and gradual since the end of COVID travel restrictions. The Yen is now approximately 40 per cent lower than during 2019, significantly increasing the cost for a Japanese traveller to visit Australia. *Australian Bureau of Statistics: Overseas Arrivals and Departures Australia, May 2024

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