Virgin airlines announces it will leave Tamworth 'for the foreseeable future'

The airline will withdraw from Tamworth "for the foreseeable future", a spokesperson announced on Wednesday. Virgin flights have not restarted after they were canned at the height of the COVID-19 crisis.

Tamworth Business Chamber President Jye Segboer said the "future" likely won't come soon.

"I would think that 'foreseeable future' would mean for at least the next three to five years for an airline, particularly coming out of COVID," he said.

"They're planning now their strategies for the next three to five years.

"If they're saying in the next 'foreseeable future' I would imagine that's for the next three to five years."

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Mr Segboer said the announcement was another blow for local business, but didn't come as a massive surprise.

Virgin went into voluntary administration earlier this year. The carrier has since been taken over by American venture capital firm Bain Capital.

The company owes local businesses including Tamworth airport operator, Tamworth Regional Council, as much as $300,000, Mr Sebgoer said.

A Virgin spokesperson cited "ongoing subdued customer demand" for the network changes announced on Wednesday.

The company is also simplifying its fleet of jet aircraft and will not fly some of its smaller aircraft, which are used for regional routes, they said.

"We remain committed to regional Australia and we plan to continue to fly to 20 regional destinations in Australia," they said.

It's understood some regional air routes were already under review before the COVID-19 crisis and subsequent border restrictions threw the air sector into financial chaos. A decision by Virgin to slash underperforming routes was accelerated by the coronavirus crisis.

Tamworth will now be left with just two airlines - Qantas and newcomer Fly Corporate.

Mr Segboer said the withdrawal of a major airline could affect local ticket prices.

"When we only had one airline before, we certainly paid a premium for that based on the availability," he said.

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New England MP, Barnaby Joyce, said the airline couldn't be expected to keep flying an unprofitable route.

"It's really simple: they've got to make money. If they can make money they'll do it. If they don't do it someone else will do it. They've got to set up an airline, not a charity," he said.

He said the industry wouldn't recover until there was an end to state border closures and an end to the COVID-19 pandemic crisis.

"The question we have to ask is how soon before they can make money again. And the answer to that is, as soon as there is enough people traveling around the countryside to pay for it."

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Asked if he thought locals would be paying more for airline tickets he said a second airline would step up to fill a shortage of supply.

"If there's a gap they'll fill it. They'll either fill it with one of those [REX or Fly Corporate] or they'll fill it with new airlines.

"Tamworth was the home of East West airlines and it did very well. Tamworth does have the nous to be able to produce their own airline if they need to."

Virgin canned a planned $30 million pilot training school at the Tamworth airport in March.

Passengers with booked tickets will be contacted by the company, the spokesperson said. Those who booked through a travel agent will need to contact them.

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