Execs give Hrdlicka speculation short shrift

Senior executives at Virgin Australia have told Business News suggestions that chief executive Jayne Hrdlicka was forced out are “scurrilous nonsense”.

Ms Hrdlicka originally signed on for five years as chief executive at Virgin Australia to take it out of administration and guide it towards an IPO and beyond.

However, with the huge global travel upheaval post-COVID, the IPO plans have slipped and Ms Hrdlicka cannot commit to at least a further two to three years at the airline.

“Investors need guarantees that a CEO will be around post-float to guide the airline and Jayne just couldn’t commit to that time frame,” one executive said.

Ms Hrdlicka has also dealt with the trauma of losing her husband and wants to spend more time with her children, insiders tell Business News.

A memo to staff last week from Virgin Australia chairman Ryan Cotton read as follows.

“I would like to formally extend my thanks and sincere appreciation to Jayne on behalf of the board for the critical role she has played in getting the airline back on its feet, restructuring the business to ensure that we could be profitable and compete successfully returning to our roots as a value carrier, and making sure we did all of that while staying true to our values and our culture.

“We have clear plans in place to drive continued growth and margin expansion, and Jayne will leave us in great hands with an exceptional team around her and across the organisation.

“There were many big milestones along the way which you all played critical roles in and should be proud of the collective achievement. It was not easy to quickly get our business in a position to compete when the market returned and we are proving our ability to do just that every day. And while we are far from finished in our journey to our potential, we know where we are headed and what we need to do to get there.

“I would like to emphasise on behalf of the board and our shareholders that we remain fully committed to the strategy and long-term success of Virgin Australia. As Jayne has said, it is incredibly important now that we all remain focused on running the business every day while also delivering on our continued journey of transformation.

“She will continue to lead you and make sure we don’t take our eye off the ball while we begin looking for the best leader to take the baton for the next phase of our journey together. We have a very strong ELT and GLT and you can take comfort in the significant team strength Jayne has built over the past few years.

“On a personal note, I have greatly valued the partnership I’ve shared with Jayne. We are lucky to have had the benefit of her leadership these past years, and she leaves behind a legacy of notable accomplishment and a platform that is well-built for success. I thank Jayne for her friendship and talents and wish her well in all that comes next.”