What is Virgin Australia's strategy (post-administration)?

[Bagpuss]

Don't want to get some 'own goals' again (on top of the issues outside their control) after the "The IPO will be in 2023" claim.

Virgin profit ‘tainted’ by workplace issues, says TWU

The union’s national secretary, Michael Kaine, said the patience of Virgin staff currently involved in enterprise bargaining with the carrier is running out and that pilots are jumping ship for higher-paying jobs overseas while cabin and ground crews are taking on second jobs.

australianaviation.com.au

Do you have a link to the Virgin newsroom that the IPO will be in 2023? Don't mix forum gossip up with fact. They did an IPO roadshow which got cut short in 2023 and never released any dates for an IPO.

 

[Saab34]

Well the IPO needs to be floated by the May 2025 Bridging loan due date correct?

 

[RAM]

Oof. This reads exactly like so many sagas with QF during that hideous period we do not speak of, and unfortunately rings a bit true to me as well with VA (first time I tried to use my FlyAhead benefit as a Platinum, I was confidently but incorrectly told by an otherwise friendly CCA to pay the change fee or take a hike). Such a simple request that should so easily be manageable online but isn't -- at either of our two major carriers -- because of woeful/non-existent investment in tech requiring calls to centres staffed with agents who often despite their best intentions cannot understand let alone process any request that doesn't follow a very narrow playbook.

It perpetually amazes me that these MBA brains who come in and deem these offshore call centres wherever they are with poorly paid/trained/empowered staff to be so efficient never clue into the fact that a one-off plus perhaps modest maintenance investment in better tech -- that will hold them back forever until they eventually invest and they will -- would significantly lower the need for human interaction altogether.

Sorry to hear this, hope you enjoyed Hawaii (still in my own post-aloha blues), and how fun are those short HA 717 hops?

Impossible not to enjoy The Big Island, Oahu not so sure...

Agree, I do enjoy the B717 flights and how quickly the crew can turn them around given how much luggage & carry-ons people always seem to bring to the Big Island. One time, when the arrival was very late - from the moment the last passenger (full flight) stepped off to the moment taxied from the gate - was less than 20 minutes with a 100% full departing flight.

 

[Saab34]

Well David Marr has quit so something must be off with the IPO.

Virgin Australia’s key IPO exec resigns

Virgin Australia’s chief development officer David Marr, tasked with leading the airline’s IPO plans, has stepped down from the role.

www.afr.com

 

[HS-TQE]

Tipping that he likely 'jumped' before he was pushed for 'missing' the (internal) Target that was mandated by Bain.

 

[cove]

Bain want to get their profit as quickly as they can. Virgin used to have too many different plane models and that has now been mostly fixed. Going forward I do expect Virgin to make profits.

 

[dajop]

Bain want to get their profit as quickly as they can. Virgin used to have too many different plane models and that has now been mostly fixed. Going forward I do expect Virgin to make profits.

They seem to have more or less returned to the model that was profitable for them when they flew under DJ as Virgin Blue.

 

[pauly7]

Well David Marr has quit so something must be off with the IPO.

Virgin Australia’s key IPO exec resigns

Virgin Australia’s chief development officer David Marr, tasked with leading the airline’s IPO plans, has stepped down from the role.

www.afr.com

Yes and this was noted up thread that a bunch of Bain implants would be goneski because of what happened

 

[UP4014]

When Bain sell there will be a new round of top people. The current crowd will be seen as change agents and not there for the long term.

 

[MooTime]

Well David Marr has quit so something must be off with the IPO.

Virgin Australia’s key IPO exec resigns

Virgin Australia’s chief development officer David Marr, tasked with leading the airline’s IPO plans, has stepped down from the role.

www.afr.com

I'd say he was there, employed for one reason and 1 reason only...the IPO.

As the article states that work is basically compete, so he looks elsewhere for what he's good at, why hang around? Bain can use him as consulting if need be when IPO nears.

Perfect sense imo.

 

[Saab34]

The only thing that has me wondering, is clearly he would be incentivised once it’s floated to the tune of tens of millions. Unknown if he will still be given the big payday for departing prior to float.

The only reason half these executives turned up at VA is due to the $$$ they all set to receive once floated.

Unless they paid him a bucketload. Woolworths had him around $6-$7m per year.

 

[RAM]

The only thing that has me wondering, is clearly he would be incentivised once it’s floated to the tune of tens of millions. Unknown if he will still be given the big payday for departing prior to float.

The only reason half these executives turned up at VA is due to the $$$ they all set to receive once floated.

Unless they paid him a bucketload. Woolworths had him around $6-$7m per year.

Or he had stars ($$$$$) in his eyes and was on an incentive structured remuneration/success fee only.

So no float = no money?

 

[RooFlyer]

Yes and this was noted up thread that a bunch of Bain implants would be goneski because of what happened

A return to profitability?

 

[HS-TQE]

"his job is done" plus reported in the media as "resigned". Bain's words for "he didn't meet our target, so we're offering him to resign, otherwise we'll fire him."

 

[Saab34]

From what I’ve heard from a colleague who worked in Finance at WOW HQ, he is the best in the business, knowledge is apparently second to none.

I guess dealing with a PE firm like Bain vs dealing with his own ex employer, Woolworths, in the Endeavour Drinks internal Float, are two different beasts.

WOW and VA would be completely differently operating environments. Culture in one is pretty good, the other pretty ordinary.

 

[jakeseven7]

When Bain sell there will be a new round of top people.

Oh there’s some new people being installed before then too

Yes and this was noted up thread that a bunch of Bain implants would be goneski because of what happened

Exactly, surprised it took this long for the media to hit it. Apparently another 3 have quietly been exited too after the failure to launch

 

[eastwest101]

Not related to Bain but it seems VA are starting to look at their Economy and Business class fare structures, particularly with concern to what corporate customers are looking for, I got this market research link and a screenshot to show their thinking, I guess they are always thinking about fare categories and what they can and cannot fiddle with.



Needless to say that as a corporate customer, my main concern was to communicate operating to a schedule and sticking to it, the first airline to operate its own published timetable will get our business in a heartbeat because when people travel they like to make plans around some sort of schedule to maximize their time and minimize waiting around at airports. So I told them that schedule reliability and service recovery/frequency options are the deciding factors for me. I also told them if they are going to charge for standard seat selection, they may as well paint their aircraft silver and orange and call themselves Jetstar.....

Sorry if this has been covered elsewhere - feel free to move to the more relevant thread mods.

 

[lovestotravel]

I rarely fly J anymore on VA since the price increases.

I noticed J fares were quite high a few months ago, and seem to have crept down, with more variations to the pricing depending on the time of day of the flight.

J is still always leaving 100% full but feel this is a result of the paid/"auction" upgrades

I fly quite a bit MEL-NAN-MEL and was getting J fares for around $900 each way, but they are now $1800 each way.

Fiji Airways is slightly cheaper and I'll take a fully flat A350 for the same price ....

Shame the points go to QF

 

[MooTime]

Not related to Bain but it seems VA are starting to look at their Economy and Business class fare structures, particularly with concern to what corporate customers are looking for, I got this market research link and a screenshot to show their thinking, I guess they are always thinking about fare categories and what they can and cannot fiddle with.

View attachment 350832

Needless to say that as a corporate customer, my main concern was to communicate operating to a schedule and sticking to it, the first airline to operate its own published timetable will get our business in a heartbeat because when people travel they like to make plans around some sort of schedule to maximize their time and minimize waiting around at airports. So I told them that schedule reliability and service recovery/frequency options are the deciding factors for me. I also told them if they are going to charge for standard seat selection, they may as well paint their aircraft silver and orange and call themselves Jetstar.....

Sorry if this has been covered elsewhere - feel free to move to the more relevant thread mods.

Did the same survey.

Great points you made.

I care very little for snack drink & wifi.

Don't like offering for seat selection either, never do as WP, but it screams budget.

Just on time flight schedules I agree must be priority with mid range pricing.

 

[HS-TQE]

The Y Flex Fare (and above) including a Snack + Alcoholic/Soft Drink pretty much takes VA back to their predecessor VB's 'New World Carrier' days, if that they go with that proposal. Those Y Flex inclusions continued into the early years of VA 1.0, iirc.