Virgin readies for IPO in forseeable future

Virgin readies for IPO in forseeable future

Virgin’s owners, Bain Capital, is looking to list the company on the ASX in order to cash in on the success seen by others in the industry.

Bain purchased the carrier and its velocity program in the early stages of the COVID pandemic for $3.5bn and while partner Mike Murphey says Bain are yet to make a final call it would seem likely it will list sooner rather than later as rival airlines Qantas and REX have seen growth of 45 percent and 20 percent respectively since July.

Virgin chief executive Jayne Hrdlicka told staff this week and in a note obtained by The Australian Financial Reviewsaid Virgin is in a great position.

“We have taken this company to a position of real strength, we have a robust strategy and resilient business model, reflected in strong market share and high loads,” Hrdlicka said.

“We have grown our fleet by nearly 60 per cent over the last two years and will welcome brand-new 737-8 aircraft to the fleet this year.”

The move to begin the IPO process is a fast turnaround in relation to other private equity ventures in Australia. Bain took six years to re-float its last big ASX venture, MYOB.

The proposed listing also serves as another reminder that the travel industry is in the middle of a major bounce back following recent years of interruptions. For the first time in 15 years Australia has a new, independent airline with Bonza and although Virgin Australia posted an underlying loss of $386.7m in the year to June 30 Hrdlicka said “we are profitable and have the financial strength to invest in building resilience in our airline and supporting continued growth.”

The Transport Workers Union (TWU) said workers whose sacrifices ensured the company’s long-term future during a lengthy administration process must now be recognised.

“TWU members fought hard to save Virgin and have held new owners to account over the past two years, securing vital long-term commitments to the airline and workforce,” TWU national secretary, Michael Kaine, said.

“Virgin’s passionate and loyal workforce have stood by the company through incredibly tough times, and worked hard through immense workload pressures to ensure the business returned as a strong competitor.

“With a float now on the cards, workers must be rewarded for their crucial role in the company’s success. We welcomed Virgin’s announcement that it would bring forward a bonus profit share scheme as inflation surged, as well as additional reward payments.”

Latest News

  • Aviation

Emirates announces third Dubai – Melbourne route to launch in March ’25, Singapore – Melbourne route scrapped

Emirates has announced it will introduce a third non-stop service between Dubai and Melbourne, starting from 30 March 2025. The new service will be operated by a newly retrofitted four-class Emirates Boeing 777-300ER, equipped with the airline’s award-winning Premium Economy product and latest generation Business class seats. The airline currently operates two non-stop daily flights […]

  • Aviation

Qantas Freight unveils specially decorated ‘Santa’s Freight’ aircraft

Qantas Freight has unveiled a specially decorated “Santa’s Freight” aircraft as it prepares to deliver more than 50,000 tonnes of international and domestic freight for the festive season. This year, Qantas Freight volumes for the Christmas period are expected to be up 5 per cent compared to last year as online shopping continues to boom. […]

  • Aviation

Qatar Airways surprises Melbourne passengers with upgrades to celebrate 15 years

Qatar Airways has celebrated its 15th anniversary in Australia by giving passengers Business Class upgrades at Melbourne Airport on Friday. The airline has flown over 9.7 million passengers in and out of Australia since starting its operation in 2009 with Australian operations commencing on 7 December 2009 with the Melbourne-Doha route. Since then, the airline […]

  • Cruise
  • Events

Norwegian Cruise Line joins Take 3 for the Sea for a beach cleanup

Norwegian Cruise Line joined forces with Take 3 for the Sea last 5 December at North Steyne Beach and Park for a beach cleanup event in aid of International Volunteer Day. The NCL team collected 1,070 pieces of rubbish, totalling 2.2kg at the Sydney location. The collected debris included 412 cigarette butts, 147 pieces of […]

  • Hotels

The Hilton brand debuts in the Republic of Moldova

The international Hilton brand is set to debut in the Republic of Moldova with the opening of its first hotel in Chisinau, marking a significant step in strengthening the country’s HORECA industry. The endeavour provides tourists with another option for world-class accommodations, excellence in standards and premium services. “Hilton’s entry into the Moldovan market is […]

  • Destinations
  • Sustainability
  • Tourism

Singapore Tourism Board accelerates its sustainability journey

The Singapore Tourism Board (STB) has unveiled two pioneering initiatives to bolster tourism and support the Singapore Green Plan 2030. The first is the Global Sustainable Tourism Council (GSTC) Attraction Criteria, the world’s first global standard specifically designed for attractions. The second is the MICE Venue Sustainability Playbook, a comprehensive guide to enhancing green practices […]