Briefing
- Virgin Australia is cutting its service to Tokyo due to low demand and a slow recovery in Japanese inbound visitors after the pandemic.
- The airline is focused on profitability, quickly adjusting routes to meet demand, showing disciplined decision-making.
- Despite the cancellation, Virgin Australia continues its partnership with All Nippon Airways for non-stop Japan-Australia travel.
As travel patterns change in the post-pandemic world, airlines are rapidly adding capacity or cutting services depending on demand and the profitability of their operations rather than continuing routes to see if they do well. One of these structural changes concerns the Japanese market, where the falling value of the yen makes inbound travel more attractive but has curbed outbound travel by Japanese customers.
Virgin Australia is crucial
When Virgin Blue launched in Australia, it was a pure domestic low-cost airline, but over time, it morphed into a smaller version of Qantas, buying wide-body planes for international flights to USA. The reborn Australian Virgin is a much more disciplined outfit that won’t let egos show before they win, which is why she has reacted so quickly in the Tokyo service.
Photo: Virgin Australia
Today, Virgin Australia announced it is suspending its daily flight between Cairns Airport (CNS) and Tokyo Haneda International Airport (HND) from 24 February 2025. The airline said it is responding to much lower than expected demand and the recovery of slow inflows of visitors to Australia from Japan, which, according to government statistics, are tracking around 35% below pre-pandemic levels.
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The route was launched in June 2023 with a 2005 Boeing 737-700, registration VH-VBZ and MSN 34322, operating the daily service until 21 July 2023. From the following day, Virgin Australia deployed the Boeing 737 MAX 8, the first VH. -8IA, en route, and has since operated three more MAX 8s between Cairns and Tokyo Haneda, VH-8IC, VH-8IB and VH-8ID.
Photo: Ryan Fletcher of Shutterstock.
Virgin Australia’s Head of Transformation and Strategy Alistair Hartley apologized to affected passengers and reassured the market that the airline’s international network continues to be a central part of its strategy.
“Withdrawing the Cairns-Tokyo services was a difficult decision, but unfortunately the recovery of inbound visitors from Japan is significantly lower than forecast and therefore operating our service to Tokyo is no longer commercially viable.”
ANA partnership
While there will be no Virgin Australia (VA) 737 aircraft heading to Tokyo, customers will still be able to book up to 17 weekly All Nippon Airways (ANA) flights between Australia and Japan. The partnership will also seamlessly connect Japanese tourists to popular Australian destinations on Virgin Australia’s network, which includes up to 13 flights a week to Cairns.
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Virgin Australia and All Nippon Airways expand partnership
With the new 737 MAX 8 in service and the launch of the Cairns-Tokyo route, Virgin Australia has signed an expanded partnership with ANA.
Passengers traveling on ANA flights will enjoy seamless baggage transfer and Velocity loyalty benefits, including earning Velocity Points. Members will continue to be able to use points for award seats on ANA services. ANA is Japan’s largest airline, operating more flights between Australia and Japan than any other Japanese airline.
Photo: Virgin Australia
VA said about 2,000 customers booked flights for travel after February 24 and will email those who booked with the airline within the next 24 hours to arrange a refund of their booking. He added that customers who booked through a travel agency or third-party booking website should contact those providers to make alternative arrangements.
The new generation Boeing 737 MAX 8 will be a welcome addition to Australia’s domestic network and VA has been steadily building a fleet of seven MAX 8s, with the next new aircraft arriving in August.