The management change at Virgin, to be effective soon after its sale to Bain Capital is completed next month, will set the stage for a battle with unions
SYDNEY (Reuters) – Virgin Australia Holdings Ltd CEO Paul Scurrah will be replaced within weeks by Jayne Hrdlicka, the former head of Qantas’ budget offshoot Jetstar, as new owner Bain looks to draw in more travellers with a “hybrid” strategy. The management change at Virgin, to be effective soon after its sale to Bain Capital is completed next month, will set the stage for a battle with unions, who support Scurrah’s vision for the full-service carrier and are concerned it will be taken downmarket under the U.S. private equity group’s ownership.
Scurrah had clashed with Bain over wanting to maintain a more premium offering than desired by the U.S. firm, two people with knowledge of the matter said on condition of anonymity. Administrator Vaughan Strawbridge of Deloitte said he had reaffirmed with Bain that Australia’s No.2 airline would not be repositioned as a low-cost carrier once Hrdlicka took over. “Virgin Australia will be a ‘hybrid’ airline, offering great value to customers by delivering a distinctive Virgin experience at competitive prices,” Strawbridge said in a statement. “This will appeal to the full spectrum of travellers, from premium corporate through to more budget-focused customers.”
Bain Managing Director Mike Murphy said his firm was committed to the strategy announced in August, when it outlined plans to protect thousands of jobs, invest in technology and honour all employee entitlements. Virgin said then it aimed to be the “best value” carrier in the market rather than a low-cost carrier and it would maintain a business class offering and network of airport lounges…Read More
Comments
Post a Comment