Virgin Australia CEO steps down

Virgin Australia chief executive Jayne Hrdlicka has resigned, after leading the company through administration and the COVID-19 pandemic over the past four years.

Ms Hrdlicka was appointed to the role in 2020 after Bain Capital acquired Virgin Australia Holdings for $3.5 billion, bringing the airline out of voluntary administration.

Her sudden announcement comes amid reports that Bain Capital delayed its plan for an inital public offering to relist Virgin Australia Holdings on the ASX late last year.

In a statement released today, Ms Hrdlicka said it was the right time to pass the baton on.

“This is not a decision I have taken lightly, but the last four years have been heavy lifting across the organisation during the toughest of times,” she said.

“We are in the midst of the next phase of our transformation program and there is a lot to do and an IPO to deliver.

“The next phase of this journey is another three to five years, making now the perfect juncture to begin the process of leadership transition to deliver the next few chapters of what I’m sure will be a significant long-term success story.”

The Virgin Australia board will shortly commence a global search process for its new chief executive, according to its statement.

Virgin Australia chairman Ryan Cotton said Ms Hrdlicka has led the company through the most turbulent times in its more than 20-year history.

“Her leadership was fundamental to repositioning the airline back to its roots as a value carrier, returning Virgin Australia to profitability for the first time in 11 years,” he said. 

“It has laid a strong foundation for continued growth and margin expansion that will underpin Virgin Australia’s competitive position in the Australian market.

“To do this required a lot of heavy lifting and the rebuild of many parts of our organisation.

“A big part of this was resetting our talent pipeline for the long-term, which serves us very well now.

"These are significant achievements, and we will soon commence looking for a new CEO to continue our transformation journey."

Transport Workers Union of Australia national secretary Michael Kaine said the union acknowledged the ongoing work Ms Hrdlicka made to workers during Virgin’s sale to Bain Capital.

“The decision to answer workers’ call with more insourced airport jobs in stark contrast to Qantas’ destructive model of fragmentation was, in our view, one of the best leadership decisions made by Hrdlicka and her team,” he said.

“It showed that listening to workers’ ideas on the best way forward for the airline is a valuable attribute for the CEO of Virgin Australia.

“Bain Capital must now reassure workers that the commitments made to remain with the airline long-term and to prioritise good, secure jobs and loyal workers are unchanged.

“The recruitment of the next CEO must carefully consider attitudes towards workers and experience collaborating with the workforce to achieve the best results for a business.”