Jayne Hrdlicka to resign as CEO

[MooTime]

If the market is in a non-ipo mood as it's been for 18 months, it don't matter who is CEO, can't sell ice to an Eskimo.

 

[Saab34]

The Australian this evening reporting that she was asked to go due to declining performance (well we started a now 500+ post, thread on that on here), and too many distractions in her other jobs as Tennis chair. Also reported sources saying Bain are looking at a Trade sale vs a IPO.

Would be fair to say they will install a new CEO alongside a new management team, again. Then try a trade sale. Huge failures on Bain’s part in the prior years letting the place slip.

 

[HS-TQE]

Trade Sale.. Apart from the usual suspect of Qatar, can't see anyone else being interested directly. Whilst there's been mention of NH or UA being dark horses, I'm tipping they'll be staying out of it.

The 'old friends of the past' had their shot and failed before, so chances of them getting involved financially (again) would be very close to zero.

 

[MooTime]

The Australian this evening reporting that she was asked to go due to declining performance (well we started a now 500+ post, thread on that on here), and too many distractions in her other jobs as Tennis chair. Also reported sources saying Bain are looking at a Trade sale vs a IPO.

Would be fair to say they will install a new CEO alongside a new management team, again. Then try a trade sale. Huge failures on Bain’s part in the prior years letting the place slip.

Thank's that info.

What failure you referring to? Last couple years of not getting IPO off the ground? Even thou that's been done to death that economy and sector in very ordinary state so IPO was in reality never going to take off.

Or you referring to pre collapse?

 

[yachty]

The Australian this evening reporting that she was asked to go due to declining performance (well we started a now 500+ post, thread on that on here), and too many distractions in her other jobs as Tennis chair. Also reported sources saying Bain are looking at a Trade sale vs a IPO.

"the IPO widely seen as scuppered" was an interesting line to read.

Trade Sale.. Apart from the usual suspect of Qatar, can't see anyone else being interested directly. Whilst there's been mention of NH or UA being dark horses, I'm tipping they'll be staying out of it.

I wonder where the speculation about NH originated from - it doesn't seem to be their MO at all.

An interesting period coming up for VA. I was thinking Bain would tidy up the cost base and get the house in order for an IPO, but it seems to have been an unproductive few years on that front so it's doubtful that another PE outfit would want to have another crack at it.

That would leave suitors with only a strategic interest... which QR would neatly fit into (at this juncture anyway).

What failure you referring to? Last couple years of not getting IPO off the ground? Even thou that's been done to death that economy and sector in very ordinary state so IPO was in reality never going to take off.

A few points were raised in the article, hopefully it's OK to copy some excerpts:

• The airline saw 45 of its top 50 corporate accounts jump ship to Qantas;
• Virgin Australia had had a prime opportunity to benefit from Qantas’s recent woes but “was clearly not capable of executing”;
• Trailed even Jetstar in on-time performance, with high cancellation rates and frequent flight delays;
• Yield on the important Melbourne-Sydney route had gone backwards since the pandemic.

 

[MooTime]

• The airline saw 45 of its top 50 corporate accounts jump ship to Qantas;
• Virgin Australia had had a prime opportunity to benefit from Qantas’s recent woes but “was clearly not capable of executing”;
• Trailed even Jetstar in on-time performance, with high cancellation rates and frequent flight delays;
• Yield on the important Melbourne-Sydney route had gone backwards since the pandemic.

The airline saw 45 of its top 50 corporate accounts jump ship to Qantas;
VA clearly stated early on their focus was on the leisure market & only went after business market later on. They went bust, of course many majors jumped off. To be accepted. My old company one of those who jumped. They haven't stopping complaining about moving to QF, price, flexibility, ability to speak to QF on issues.
Virgin Australia had had a prime opportunity to benefit from Qantas’s recent woes but “was clearly not capable of executing”;
They did benefit, increased there market share to ~37% & made 1st profit in 10 years, that's executing rather well imo. Just recently they've hit the skids.
Trailed even Jetstar in on-time performance, with high cancellation rates and frequent flight delays;
As just mention recently they've hit few issues.
Yield on the important Melbourne-Sydney route had gone backwards since the pandemic.
They competing with Jetstar, and rex in hybrid/ LCC market so lowered prices. Naturally lowered margins.

 

[jakeseven7]

The Australian this evening reporting that she was asked to go due to declining performance (well we started a now 500+ post, thread on that on here), and too many distractions in her other jobs as Tennis chair.

Yes this CEO has had good form in painting alternate narratives - it will be interesting to see where she resurfaces…

 

[kpc]

Not a great look for the CV having been essentially sacked from her last 2 jobs. Would be interesting to hear how she answers this Q at her next job interview: "Why did you leave your last 2 jobs?"

 

[MooTime]

Not a great look for the CV having been essentially sacked from her last 2 jobs. Would be interesting to hear how she answers this Q at her next job interview: "Why did you leave your last 2 jobs?"

Far from that simple....gee.

Did your see her company departure letter?

 

[cove]

It would be tough to get sacked from a CEO role. Private Equity does show us how brutal that part of the business world is.

 

[AustraliaPoochie]

She has a marketing background and then ran the FF program.

I would think VA needs someone who has deep airline operational experience. But I could be wrong.

Heh, well, someone picked PS, (Paul Scrurrah)... ages ago, now.

 

[Saab34]

considering the firm they have chosen to search for a new boss, likely someone from USA one would think.

Might be good to get someone from one of the bigger players in the US. Really would love to see widebodies back in play later this decade. Certainly a bit of talent in the stages, just need to nut out the right person.

 

[oz_mark]

Not a great look for the CV having been essentially sacked from her last 2 jobs. Would be interesting to hear how she answers this Q at her next job interview: "Why did you leave your last 2 jobs?"

Easy. Contract wasn't renewed!

 

[eminere]

According to an article from Australian Aviation, Jayne was allegedly caught unaware and was forced out, and she cried when she was given the news.

 

[Must...Fly!]

According to an article from Australian Aviation, Jayne was allegedly caught unaware and was forced out, and she cried when she was given the news.

Unfortunate for her. Maybe she was enjoying the work given the turmoil in her private life.

Bain and others are under a lot of pressure from investors. It's been hard to generate profits back...I would think a trade sale to be quite likely at this point. If anyone wants to buy is the question.

 

[HS-TQE]

Well that's how brutal the Private Equity part of the business world goes.

Wonder how the Private Equity part of REX ticks (as the primary funder of the REX mainline ops) working with the Singapore consortium including lead shareholder Lim Kim.

 

[dajop]

Wonder how the Private Equity part of REX ticks (as the primary funder of the REX mainline ops) working with the Singapore consortium including lead shareholder Lim Kim.

At a glance PAG seems to have a longer term strategy than western PE. Could be wrong.

 

[MooTime]

Well that's how brutal the Private Equity part of the business world goes.

Wonder how the Private Equity part of REX ticks (as the primary funder of the REX mainline ops) working with the Singapore consortium including lead shareholder Lim Kim.

I would say confidently that the same situation certainly occurs in all firms / sectors large, small, listed ones, gov ones etc etc.

To say private equity is brutal and imply other firms and businesses isn't is just incorrect.

 

[RooFlyer]

To say private equity is brutal and imply other firms and businesses isn't is just incorrect.

Having worked with lots of of PE firms (as clients to the investment bank I was with), I'd say PE is a bit more focussed as to achieving their objectives and yes, probably more brutal than most businesses to get there, especially if things go wrong. One, from Perth I dealt with could only be described as utterly ruthless - even their partners in a deal were subject to being duded (and were).

As you say, such behaviour is known throughout business, but I think PEs, as a class, are pretty much up there.

 

[Saab34]

Well staff backtracking now. Hmmm.

https://www.airlineratings.com/news/industry-news/virgin-australia-ceo-departure-rumour-scurrelious-nonsense/