Australian MRO firm John Holland Aviation Services (JHAS) will cut 40 engineering and technical jobs at its Melbourne heavy maintenance facility.
A spokeswoman for the company says that the redundancies resulted from "a reduced requirement for onshore heavy maintenance services in the future as a result of economic conditions and the high Australian dollar."
Local reports add that Virgin Australia plans to scale back the maintenance conducted on its Boeing 737 fleet by JHAS in favour of sending more work to Air New Zealand Engineering Services in Christchurch.
Air New Zealand is the largest shareholder in Virgin with a 23% stake and the two carriers operate in an alliance on trans-Tasman routes.
"JHAS will continue to adapt to meet the various maintenance strategies of its customer base," the spokeswoman adds.