VA Bain culture and its CEO under fire

[Harrison_133]

I still think it was the commercial part of the airline, especially the aircraft leasing along with Covid 19 restrictions that undid them, and not the general staff culture or any problems with productivity.

I think this is exactly it. Wasn’t Jayne quoted saying they cut of $300m in the domestic cost structure alone? And they did take an axe to the HQ staff (≈600 roles if I recall correctly, maybe not) so clearly there were commercial inefficiencies there.

VA 1.0 was strung with both leases and ongoing 'owned aircraft' mortgages (mortgages being a legacy stretching back to the SQ/EY/NZ eras and later HNA/Nanshan), thus the entire 737 fleet was either leased from a lessor or mortgaged to a bank.

Wasn’t the A330 fleet on some of the most expensive aircraft lease rates for A330’s in the world? No wonder they were dropped quick smart… There were also 4 E190’s still registered to VA on the Australian aircraft register until they went into administration in 2020 even though the E190 fleet was retired in 2018.

 

[AIRwin]

There were also 4 E190’s still registered to VA on the Australian aircraft register until they went into administration in 2020 even though the E190 fleet was retired in 2018.

And 2 B777?

 

[Harrison_133]

And 2 B777?

They would have been in operational still at that point, but VA 1.0 had a number of E190’s and ATR’s they were paying for but had parked overseas.

 

[ANstar]

A2 would agree with the first part based on all the media stories, but not the second part - that's for sure.

JQ - who knows what they would say if they could - they've buried her time pretty deep and closed the door, you don't see much reporting on her behaviour there - but as previously posted perhaps the QF machine protected her - we will never know I suppose.

Given most of her exec team is now ex Jetstar she must of had a decnt reputation amongst some circles otherwise why go work for her?

 

[jb747]

Given most of her exec team is now ex Jetstar she must of had a decnt reputation amongst some circles otherwise why go work for her?

I guess the game with CEOs these days is to surround themselves with loyal flunkies, who do quite well by sticking around. The rest of the staff...not so much. Mind you, I could be describing any number of business or political leaders.

 

[HS-TQE]

And 2 B777?

They were still operational alongside 3 other B777. The 4 owned of the 5 777s were mortgaged alongside the owned 737 fleet.

 

[HS-TQE]

They would have been in operational still at that point, but VA 1.0 had a number of E190’s and ATR’s they were paying for but had parked overseas.

Seems half the E190 was either mortgaged (ex-fully owned) or leased. The E190s parked were the mortgaged units.

All of the ATRs were leased, however the lessors must've charged an early return fee to VA and the ATR lessors may had been struggling to lease those out upon return from VA.

 

[jakeseven7]

Virgin has been forced to come out publicly to address the reports of poor workplace culture amongst many recent high profile exits (both firings and resignations).

It also refers to their ex-PR Comms person who left under a very dark cloud and dubious circumstances (previously reported).

——

Virgin denies cultural issues amid CEO bullying claim​

Virgin Australia has denied there are deep-seated cultural issues in the company since it was relaunched by Bain Capital almost two years ago after a string of recent exits and a bullying allegation levelled at chief executive Jayne Hrdlicka.

The group’s former chief pilot, Michael Fitzgerald, this week launched legal action against the airline in the Federal Court and accused Ms Hrdlicka of workplace bullying.

Media reports of many other senior exits have further stoked the issue.

Virgin denies cultural issues amid CEO bullying claim

Virgin Australia has denied there are any deep-seated cultural issues after a string of exits and a bullying allegation levelled at CEO Jayne Hrdlicka.

www.afr.com

 

[clifford]

I could be describing any number of business or political leaders.

Yes, like pretty much all of them.

If you want to run a successful large business, there's really not much (sensible) alternative. Sad but true.

 

[odysseus]

A2 would agree with the first part based on all the media stories, but not the second part - that's for sure.

JQ - who knows what they would say if they could - they've buried her time pretty deep and closed the door, you don't see much reporting on her behaviour there - but as previously posted perhaps the QF machine protected her - we will never know I suppose.

JQ - which is pretty normal. You rarely hear any company report on ex-CEOs behaviour after they have left. If everything's fine, why would they? Just for gossip?

A2 - well, that has a whole bunch of issues and they relate to the current board and management. Their lack of knowledge of operations, and market, were made all too visible during the pandemic. And that was after Jayne's time. Seems they're happy to lay blame at anything they can.. except themselves.

 

[jakeseven7]

Another one bites the dust

EXIT OF VIRGIN’S GROUP MEDICAL OFFICER RAISES MORE CULTURE QUESTIONS​

New questions have emerged over Virgin Australia’s workplace culture after it was revealed the airline’s group medical officer took stress leave from her role at the height of last year’s lockdown before joining rival Qantas.

Exit of Virgin’s group medical officer raises more culture questions

New questions have emerged over Virgin Australia’s workplace culture after it was revealed the airline's group medical officer took stress leave from her role at the height of last year's lockdown before joining rival Qantas.

australianaviation.com.au

 

[jakeseven7]

And, another harrasment court case against Virgin has been launched, in the Federal Court.

This one is separate to the first court case.

Flight attendant chases Virgin for damages after ‘humiliation’

A former Virgin flight attendant has claimed a superior publicly humiliated her and that the airline forced her out of the job with a sham re-training exercise.

www.afr.com

 

[stryker]

And,

Do you have some sort of problem with VA2?

 

[Saab34]

JQ - which is pretty normal. You rarely hear any company report on ex-CEOs behaviour after they have left. If everything's fine, why would they? Just for gossip?

She was close to Alan and both friends. It appears a very quiet exit was planned as she disappeared into another role within the QFF part of the business, before very quietly leaving the place 6 months later.

All seemed very orchestrated to me.

All these executives sign seperation deeds on exit so no real reason to have a public whinge unless they have a big axe to grind.

 

[Must...Fly!]

Where there is smoke there is often fire. But not necessarily in the place you think.

VA MK 1 was well known to be bloated and ineffective management. Perhaps people that were problematic in the past now have management above who know a thing or two and are taking decisive action to make the right appointments in the right places?

Just throwing a theory - I do not know in reality - but it is just as likely as the alternative. JH obviously has an extremely strong mandate from Bain to clear house.

 

[HS-TQE]

Some of the middle management under JB and later PS (They would've 'allegedly' had some contribution towards the alleged 'toxic culture' that stretched back to the Borghetti era) possibly may had been told to move on elsewhere by their Bain appointed superiors once Bain moved in.

 

[eastwest101]

While the executive exits aren't a surprise I'm more worried about the poor "working stiffs" at some airlines.

PayWalled behind the usually anti- union The Australian but here are some extracts;

Once considered a desirable profession, airline cost-cutting and the changing aviation landscape has taken much of the shine off the job with marathon days, low pay and occasionally abusive passengers now the reality.

As a result of overhauled enterprise agreements, the base salary for cabin crew across Australia’s major airlines was now under $50,000 a year, starting from $45,864 with Virgin.
As a result of overhauled enterprise agreements, the base salary for cabin crew across Australia’s major airlines was now under $50,000 a year, starting from $45,864 with Virgin.

Those working at Virgin Australia were also required to clean the aircraft between flights, and some of Qantas’s long haul cabin crew have found themselves sleeping across seats in economy on services to Los Angeles.


Why are they having trouble hiring crew again?

 

[Must...Fly!]

Once considered a desirable profession, airline cost-cutting and the changing aviation landscape has taken much of the shine off the job with marathon days, low pay and occasionally abusive passengers now the reality.

Just the latest instalment in a saga that has been going just about non-stop since...ever? But particularly the 90s I guess.

It was like that when I was working in the industry and I am sure nothing has changed.

Why are they having trouble hiring crew again?

I don't really think they're having that much trouble for flight attendants. It still remains a desirable profession for some who gain the flexibility they want/need from their employer and are attracted to the industry. Though some would've definitely had their eyes opened by other opportunities found during COVID.

The real problems come in where you have poor pay aligned with poor management who roster for example 3 hour shifts starting at 2:30am. There is a reason why most ground handlers are having issues.

 

[drron]

I really don't think that the departure of the Group Medical Officer says anything about VA management. She has been an Aviation medical officer for over 20 years. been a medical officer with CASA and Air NZ before VA.
Sounds typical for those uncomfortable with patient contact. much like QLD's former CHO. So it probably was a cushy job until Covid and especially after several VA staff and passengers came down with Covid the job was no longer cushy.

Though she is now working for QF it is just one of their medical officers and there are a few of them. their director of Medical Services has been in the same job for 20 years. before that worked at CASA. Maybe knew the Ex VA medico.

 

[MARTINE]

JH also only said brief words during the post-finals presentation(s)

… not the night of the mens final ….