Bain Capital takes Control of Virgin Australia

[Maccaj73]

Are they trying to kill off all their velocity members before re-launch? All this speculation and diminishing of the product will have every corporate traveller jumping to QF ASAP. Credit Cards, Flying the works...Their Golden Goose in Velocity will be worth nothing in 6-12 months if they don’t start filling corporate travellers with some confidence.

 

[jakeseven7]

Well according to the leakers / rumours on the news:

- 'Resignation' imminent

- Future role of Jayne unsure still...

- PS wanted to keep more international. Bain wanted far less / none

- PS wanted to keep all lounges. Bain wants to cut a bunch of them

- PS wanted to launch a LCC later in the journey. Bain wants to move VA2 downmarket and therefore no room for a LCC.

- Bain started exiting senior members of PS's team he wanted to keep

- PS wanted to keep more aircraft for VA2d. Bain wanted a much smaller airline to begin with, do a complete reset. VA2d likely to be smaller than JQd.

 

[melb78]

Gee if this is true Bain will have a hard time running VA

 

[jakeseven7]

Gee if this is true Bain will have a hard time running VA

Why? They have an airline executive on staff that ran a major Australian domestic airline for years....

 

[melb78]

A the staff don’t like her the unions don’t and if Bain has done a dirty at the aust people they will travel on other airline that’s my take on it anyway

 

[kamchatsky]

A the staff don’t like her the unions don’t and if Bain has done a dirty at the aust people they will travel on other airline

Unless VA drop their prices and people will still fly with them. As business recovers it would be Best Fare of Day policies applies.

 

[jakeseven7]

A the staff don’t like her the unions don’t and if Bain has done a dirty at the aust people they will travel on other airline

The unions rarely 'like' senior management as a general rule.

I'm sure the Australian public don't really care who runs VA2, I'm sure most don't even know who PS is.

The VA2 staff? I hadn't heard they didn't like Jayne.... or perhaps they don't like what she did in the past (run a LCC) which they don't want VA2 to become?

 

[melb78]

We will soon find out in a little while

 

[oz_mark]

On the ASX

https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02294197-2A1256598?access_token=83ff96335c2d45a094df02a206a39ff4

The Deed Administrators of the Virgin Australia Group (Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes – all Deloitte Restructuring Services partners) advisethat Paul Scurrah will step down as Chief Executive Officer and Managing Director at financial close of the sale transaction to Bain Capital, being the completion of the Deeds of Company Arrangements (DOCAs)

....
It is the intention that Jayne Hrdlicka will be appointed by Bain Capital as CEO once the transaction is complete, in early November. Jayne has strong aviation credentials. She is very focused on seeing the business succeed and I wish Virgin Australia well under her leadership.”

 

[33kft]

Looks like Jetstar are going to have some competition

 

[BNEFlyer]

We will soon find out in a little while

Unfortunately he's gone.

 

[TheInsider]

On the ASX

https://asx.api.markitdigital.com/asx-research/1.0/file/2924-02294197-2A1256598?access_token=83ff96335c2d45a094df02a206a39ff4

The Deed Administrators of the Virgin Australia Group (Vaughan Strawbridge, John Greig, Sal Algeri and Richard Hughes – all Deloitte Restructuring Services partners) advisethat Paul Scurrah will step down as Chief Executive Officer and Managing Director at financial close of the sale transaction to Bain Capital, being the completion of the Deeds of Company Arrangements (DOCAs)

What a stock standard response. Soooo generic.

 

[jakeseven7]

Boom Paul is OUT and Jayne is IN - is anyone that surprised?

QF will be more worried about her I expect than PS.

Jayne knows QF and especially JQ inside out....

She will be able to run VA2 as a LCC quite well I'm sure, that is her experience. I'm sure they will be more LCC+ though, hopefully.

 

[kamchatsky]

Boom Paul is OUT and Jayne is IN - is anyone that surprised?

QF will be more worried about her I expect than PS.

Jayne knows QF and especially JQ inside out....

She will be able to run VA2 as a LCC quite well I'm sure, that is her experience. I'm sure they will be more LCC+ though, hopefully.

Unfortunately I would expect either further wage reduction for staff, or massive redundancies as a result of this. I really feel sorry for Virgin staff as they have provided far better customer services than QF.

 

[BNEFlyer]

Unfortunately I would expect either further wage reduction for staff, or massive redundancies as a result of this. I really feel sorry for Virgin staff as they have provided far better customer services than QF.

Not only redundancies but resignations. VA staff loved Paul as their CEO, so for them to now see Bain's true colours, have him pushed out and have JH installed, it might be hard for some to stay. Even harder for JH to be respected as CEO going forward.

 

[OATEK]

While I have every sympathy for VA staff/pilots, I do think there has been an excess of optimism about how the remnants of VA might operate. PS might have had a vision, but I don't know that it was ever more likely to be realised than JB's.

 

[desafinado74]

Unless VA still maintains the points exchange program with SQ, time for me to completely switch over to QF credit cards , Woolies, QF shopping mall etc. And as an A2 shareholder, she did not really do a great job as a CEO. (Maybe she is better off in the aviation sector, let's see)

 

[aaronm]

Have always said I’ll wait and see how everything shakes out but Velocity is looking less and less worthwhile in the medium term. If lounges, upgrades, redemptions etc are thinning then there’s really little point remaining loyal, better to switch over to QF.

 

[Oneworldplus2]

VA Mk2 is the new Aussie Southwest.....

 

[p--and--t]

Bain is 'ripping out the heart of Virgin' says union amid fears Virgin Australia CEO could lose his job

A key union is concerned the new owner is aiming to put former Jetstar boss Jayne Hrdlicka in charge of Virgin Australia and turn the airline into a low-cost carrier.

www.abc.net.au