Virgin Australia passengers expected to be given travel credits under new owner

Travellers who have tickets with Virgin Australia are expected to be given credit to use with them until the middle of 2023.

The airline, which is in voluntary administration, has told passengers it plans for them to be able to keep their travel credit when new owner Bain Capital takes over.

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"We're pleased to let you know that Virgin Australia will provide you with a new credit to the value of your travel credit and extend the expiration for travel until 30 June 2023," Virgin Australia said in an email to passengers.

"We hope that this additional time allows for more travel and border restrictions to ease so you can plan your next trip with confidence.

"This credit is part of a broader proposal by Bain Capital for the Virgin Australia Group, and is subject to the proposal's approval at a creditors meeting."

The carrier said they anticipate the credit will be available on September 23 this year, and can be used for booking flights until July 31, 2022, for travel until June 30, 2023.

Australia's borders remain closed for all but essential travel, with only citizens and permanent residents allowed in. All flights are subject to caps on numbers because of hotel quarantine.

Earlier this week, Virgin Australia's new owners Bain Capital announced they are resting the Tigerair brand, leaving just Jetstar as the country's only low-cost airline.

The airline said about 3000 staff will lose their jobs.

In an announcement to shareholders, Virgin Australia said its budget offering would be sidelined until there were enough customers to warrant reviving it.

"The Tigerair brand will be discontinued in the market as there is not sufficient customer demand to support two brands at this time," the announcement read.

READ MORE: 3000 to lose jobs as Virgin Australia axes Tigerair