Since what many believe to be Deloitte’s successfully orchestrated Bain Capital taken over of Virgin Australia, when they both promised little change, it appears there has been nothing but change at Virgin Australia, with the Deloitte and Bain Capital private equity axe appearing to have been well sharpened and well used.
Their axe appears to have fallen regularly, not only for the thousands of staff laid off when, both originally said there would be no job cuts, but also in the last few weeks for former CEO Paul Scurrah as reported on eglobaltravelmedia.com.au – check out this link CLICK HERE, with amazingly one day Scurrah saying he was staying on as CEO, but the next day announcing he was leaving, with former Jetstar CEO and a2milk CEO Jayne Hirdlicka, who had been waiting in the wings for some time as an advisor to Bain Capital in their bid to acquire Virgin Australia, controversially taking over as CEO of Virgin Australia, which was no surprise to anyone!
For an independent view, check out this interview with leading RMIT independent corporate governance and aviation expert Warren Staples CLICK HERE.
So, since the Deloitte and Bain Capital private equity axe fell on Paul Scurrah, it is reported that it has also has fallen on chief strategy officer Michael Jones, head of corporate sales Anne Elliot and general manager of alliances and international sales Phil Squires, all following the resignation of chief experience officer Danielle Keighery in August, who I appears I am told may have seen the writing on the wall!
In the meantime, Deloitte, as the administrators overseeing the sale of Virgin Australia to Bain Capital announced on 23 October in a statement to the Australian Stock Exchange on 23 October that it appears most of the board of Virgin Australia has resigned before the sale is final which will be in early November.
The Virgin Australia board resignations include Chairman Elizabeth Bryan and Board Members Kenneth Dean, Trevor Bourne, Alla Houston, Judith Swales and Marvin Tan.
Virgin Australia also said in the statement to the Australian Stock Exchange that formal resignations had as yet to be received from Raymond Gammell, Hou Wei and Kevin Xing and that it had appointed Alan Hunt as a new director and that very interestingly ougoing CEO Paul Scurrah and also directors Warwick Negus and Alan Hunt will continue as directors until the sale is completed in November.
The administrators still insist that Virgin Australia will not be repositioned as a low-cost carrier, but as a ‘hybrid’ airline, offering great value to customers by delivering a distinctive Virgin experience at competitive prices, appealing to the full spectrum of travellers, from premium corporate through to more budget-focused customers.
We shall have to wait and see, but one thing is for certain the chopping of costs and overheads is high on the agenda at Bain Capital and is anticipated to continue, which is very common, with private equity buyers renowned for doing so and achieving a quick exit strategy through a quick sale of the business within a year or two.
A report by John Alwyn-Jones
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