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A peek into Virgin Australia's new business class cabin

Virgin Australia revealed its new business class cabin on Monday, which it claims features the longest and widest lie-flat beds currently available in domestic air travel.

The latest offering, part of the airline's strategy to up its competitive edge in the domestic Australian market, "sets a new standard in domestic business class around the world," Virgin Australia chief executive John Borghetti told CNBC.

Australia's second largest airline has been struggling to return to profitability, hampered in part by a weak performance from its international business.

Under the redesign, business class cabins have been changed to a one-two-one configuration so that each seat, which is 80 inches long and 28 inches wide, has access to the aisle. Center seats are fitted with sliding screens for extra privacy. All business class travelers will have the option of a hotel-style turn-down service.

Virgin Australia

On the technology front, Virgin has installed high-definition 16 inch-touch screens with an enhanced user interface and 400 hours of entertainment.

The new business class will be available on its full Airbus A330 fleet by the end of October, the airline said.

"We are reconfiguring all six aircraft within 3 months – so within a 3-month period you'll have consistency of product, which is very important if you're hoping to get more market share," Borghetti said in an interview with CNBC.

Virgin Australia

Virgin Australia reported a 49 million Australian dollar ($36 million) underlying pre-tax loss in the year to June 30, following an A$211.7 million loss in the previous prior financial year.

But Borghetti told CNBC that the "business metrics" were now heading in the right direction, adding that the group was on track to return to profitability this financial year.

Earlier this month, the airline announced plans to axe flights to Bali and Phuket in order to turn around its loss-making international operations.

The airline will offload routes from Melbourne, Adelaide and Perth to Bali to its subsidiary Tigerair Australia from March, and will discontinue its Perth to Phuket service in January.