Virgin Australia axing its Hong Kong route
Virgin Australia is axing its Hong Kong route for good, following declining ticket sales in recent months.
The airline announced it would suspend its Melbourne-Hong Kong flights in November, with the last flight taking place next week.
Today it was announced the route between Hong Kong and Sydney would cease at the start of March.
Virgin Australia is axing its Hong Kong routes. AAP
"The Hong Kong market has remained challenging for the airline and demand has continued to decline following ongoing civil unrest," Virgin Australia said in a statement.
"These factors, combined with growing uncertainty around the recent coronavirus outbreak, have led to the decision to cease operating services."
Guests booked on Sydney to Hong Kong flights after March 2 should expect an email from Virgin Australia or their travel provider for an alternative flight.
Richard Branson at the launch of the Virgin Australia route from Melbourne to Hong Kong. AAP
Chief Commercial Officer John MacLeod said that Hong Kong is a challenging market.
"With a decline in demand following ongoing civil unrest, and growing concerns over the coronavirus outbreak in the wider region, we have made the decision to withdraw services," he said.
"Current circumstances demonstrate that Hong Kong is no longer a commercially viable route for Virgin Australia to continue operating, however international tourism remains an important part of our strategy through our other international routes and partner airlines."
The decision comes after it was revealed staff at Hong Kong-based Cathay Pacific had been asked to take unpaid leave.
A Hong Kong shop worker puts face masks on display as the coronavirus spreads. AP
"In view of the Novel Coronavirus outbreak and also significant drop in market demand, we just announced massive capacity cuts yesterday," Cathay Pacific said in a statement.
Between March and June, airline staff will be allowed to take up to three weeks of unpaid leave.
Cathay Pacific said it had been forced to cut 90 per cent of its flights to mainland China in the next two months.
The airline last introduced an unpaid leave scheme in 2009 following the global financial crisis.
It is also asking suppliers for price reductions and placing a freeze on hiring.
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