Virgin Australia CEO Paul Scurrah to resign after Bain shake-up

Virgin Australia’s Paul Scurrah will be leaving

Virgin Australia’s Paul Scurrah will be leaving

Mr Scurrah said that Virgin's plan under Bain is to name United States business executive Jayne Hrdlicka as the company's next CEO, likely to be announced next month.

Jayne Hrdlicka will become CEO of the Virgin Australia Group after the incumbent Paul Scurrah confirmed he would be leaving the business when new owner Bain Capital takes control in early November.

Creditors owed almost A$7 billion (S$6.78 billion) last month approved Bain's purchase of the airline, which entered voluntary administration in April after suffering from a sharp plunge in demand because of the coronavirus pandemic.

Scurrah is believed to have had concerns over the future direction of the carrier.

He had reportedly wanted to maintain a more premium offering than the new owners.

"We are committed to the strategy Virgin Australia announced in August, when the company outlined its plans to protect thousands of jobs, invest in technology and honour all employee entitlements", he said.

Hrdlicka had a tense relationship with unions in her previous roles at Jetstar and Qantas Airways Ltd.

"What we've done is taken the measured step of halting proceedings until we get some clarity", national president Michael Kaine told Australia's ABC.

However, Mr Strawbridge attempted to address that speculation on Thursday, saying he had reaffirmed Bain that Virgin Australia would not be repositioned as a low-priced airline.

'We have succeeded in not just ensuring the future of the company, but also reset the business to ensure it is well placed to deliver for Bain Capital for many years to come'.

"Whilst it has been the most challenging time in aviation history, I have continued to be so proud of the way my team and our entire organisation has fought to save this airline", Scurrah said.

The model would appeal to "the full spectrum of travellers" from corporate to budget, Deloitte said.

Virgin Australia CEO Paul Scurrah has stepped down from his role after the airline reported $349million in losses during a turbulent year.

In addition to worldwide border closures, a patchwork of state border restrictions during the pandemic has made things hard for Australia's airlines.

Virgin itself has already said about 3,000 jobs will go when Bain takes over, with about 6,000 remaining.

He opposed further job cuts at Virgin and feared a shift to the low-priced market would give Qantas a monopoly of the corporate sector.

The airline had previously held around 31% of Australia's domestic routes, while Qantas controlled roughly 58% of the market.

Virgin Australia's CEO has resigned, confirming one of the worst kept secrets in corporate Australia.

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