In the fall of 2023, the chief executive of Australia's flagship airline Qantas Airways (QUBSF) Alan Joyce ended a 15-year career with a resignation amid a ticket-booking scandal in which a consumer protection group accused the airline of selling seats on flights it never intended to run at the height of covid-19 lockdowns and then not offering refunds when the country remained closed.
Other sources of simmering consumer anger include widespread layoffs even amid record profits for the airline and a general lack of concern for the passenger experience perceived by many (incoming CEO Vanessa Hudson immediately began her new role with an apology video pledging to regain customer trust.)
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While the departure is not connected to a scandal, the CEO of competing airline Virgin Australia (SPCE) just also stepped down after four years in the post. The airline was rescued from bankruptcy by private equity firm Bain Capital in 2020 for $3.5 billion Australian dollars (roughly $2.2 billion USD) and is currently preparing to go public with an IPO after getting back to profitability in 2023 and logging its first fully profitable year in 2024.
Virgin Australia CEO steps down, says 'time is right to ultimately pass the baton on'
In a statement, outgoing chief executive Jayne Hrdlicka said that the "time is right for [her] to signal CEO transition for this great airline and ultimately to pass the baton on."
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"[Hrdlicka's] 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," Virgin Australia Chairman Ryan Cotton said in another statement.
Reuters had earlier reported that Bain was hoping to re-list Virgin Australia back on the market for AU$1 billion ($660,000 USD) but the plans hit numerous delays and setbacks amid both global financial instability and the resignation of one of the main executives leading the IPO plans in October 2022.
'Not a decision I have taken lightly but the last four years have been heavy lifting...'
At the time, the airline said that going public was "dependent on capital market conditions" and hinted that it was worried of how doing it too early would affect valuation.
"This is not a decision I have taken lightly but the last four years have been heavy lifting across the organization during the toughest of times," Hrdlicka said of her own resignation. "I am very proud of what the Virgin Australia team have accomplished together since the depths of administration and the COVID-19 pandemic."
Hrdlicka was also the first female CEO since Virgin Australia launched out of Brisbane in 2000. She said that she will spend her post-Virgin time with her family as well as on her other role as chairman and board president of Tennis Australia.
Along with congratulating Hrdlicka on her successes during her time at the helm, Virgin Australia announced that it would immediately begin a search for a replacement before the airline goes public — a move that will surely delay the IPO further since neither Bain nor the airline are likely to make such a move without an established CEO.
