Virgin Australia boss Jayne Hrdlicka to step down

Virgin chairman Ryan Cotton said Hrdlicka led the business through its most turbulent time in its 20-year history.

“While this will feel too early for many of you, it is very understandable given how tough it has been, getting us back in shape through a difficult time in the industry and the forward commitment through IPO [initial public offering] and beyond is significant,” Cotton said in an email to Virgin employees on Tuesday.

Analysts and industry investors have already started floating potential local contenders to take the reins. One name being discussed by analysts is former Qantas loyalty boss Olivia Wirth, who recently announced her departure from Qantas after missing out on the top position to Vanessa Hudson following the departure of Alan Joyce in September.

Qantas’ frequent flyer program delivered record earnings before interest, tax, depreciation and amortisation last year and $1 billion in free cash flows.

Qantas’ former chief financial officer, Tino La Spina, who until recently helmed Boral’s finance and strategy divisions, has also been suggested. La Spina worked at Qantas for 14 years before moving to Boral until June 2022. He is currently working as a financial adviser to the board of GenesisCare.

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Virgin issued its management team close to 2 million shares at $2.10 each in February last year. This was more than twice the value of the equity given to the airline’s leadership after the carrier business returned to profit for the first time in 11 years in 2023.

Industry analysts who were not authorised to speak publicly said Bain was in a very different position to when it first plucked the once-struggling carrier out of administration in 2020.

Bain cancelled its non-deal roadshow investor meetings in April last year and has not rescheduled them since. The business’s former chief development officer, David Marr, who was charged with leading the group’s plans to float, quit in October. The group’s head of investor relations, Chris Vagg, has also resigned.

These retirements mean the three executives who were originally scheduled to pitch the potential float to investors have since left the business. The airline is also struggling with its on-time performance and ongoing issues with its manufacturer, Boeing.

“Is a global private equity firm positioned to be a long-term owner of a domestic airline? They may have recapitalised and made back their original investment, but it’s not Bain’s typical portfolio asset and the operating conditions are getting more challenging as time goes on,” one analyst said.

Tennis Australia on Tuesday night confirmed that Hrdlicka would remain as chair of the organisation.

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