Is Bain capital seeking a buyer for Virgin Australia?

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  • cwoodward
    Participant

    Having dumped its CEO Jayne Hrdlicka last week it seems that the poorly performing airline’s private equity owners Bain Capital are rumoured to be looking for a buyer after failing to float the airline due to market conditions and poor performance.

    According to the Australian newspaper Hrdlicka was “given no warning” that she was going to be “dumped” and was deeply upset by her treatment.

    It added Bain Capital had been “unhappy with her performance for some time particularly the
    the merger A$129 million profit for the last full financial year compared to Qantas2.45 Billion profit for the period.

    It is reported that Bain had no confidence that Hrdlicka was capable of moving the company forward to challenge once more the Australian dominance locally and internationally of Qantas.


    RedBaron
    Participant

    Virgin is struggling to find a niche.

    It’s charging full service prices on many routes without the (admittedly not much better) service of Qantas. It struggles to compete with Jetstar price-wise on many domestic and international routes and while it is popular with business travellers and can provide the frequency at peak times it also needs to be able to compete on price to keep those non-peak flights on trunk and regional routes frequencies full.

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