VIRGIN AUSTRALIA: Is CEO Jayne Hrdlicka changing her departure plans?

Speculation is swirling around Virgin Australia’s CEO Jayne Hrdlicka following signs that she may be rethinking her decision to leave the airline despite her February 2024 announcement of stepping down. Recent developments, including strategic successes and personal investments, suggest her departure might not be set in stone after all.

A strategic win with Qatar Airways

Hrdlicka’s leadership has been transformative for Virgin Australia. One of her most significant moves was securing a partnership with Qatar Airways, which acquired a 25.1% stake in Virgin Australia in mid-2024. The other shares remain in the hands of Bain Capital.

This strategic alignment and wet-leasing agreements give Virgin access to Qatar’s expansive global network and strengthen its international reach. Wet leasing is where Qatar supplies aircraft, pilots, and crew without Virgin Australia having to invest in a fleet of new aircraft and lounges.

The timing was critical amid tensions between Qatar Airways and the Australian government over additional flight permissions, highlighting Hrdlicka’s deft handling of challenges.

Luxurious property purchase

Adding to the intrigue, Hrdlicka recently sold her Melbourne property for a discount after initially putting it on the market for AU$18 million. She is now living in Coorparoo, a suburb of Brisbane (Virgin Australia’s base city), in a contemporary mansion with a tennis court. After all, she is Chair of Tennis Australia.

Further fueling speculation, Hrdlicka also acquired an AU$16.9 million ‘renovator’ holiday home in Little Cove, Noosa, overlooking the beach. This high-profile acquisition suggests deeper ties to Queensland and ongoing professional commitments.

Bain Capital and a battle for Insignia

Virgin Australia’s majority owner, Bain Capital, is embroiled in a bidding war for Insignia Financial against CC Capital, which might mean the airline’s leadership is not currently their major focus.

The private equity giant’s active maneuvering in this major financial deals adds another layer of complexity to Hrdlicka’s potential future.

Why would Jayne Hrdlicka step away now?

Under Hrdlicka’s stewardship, Virgin Australia has seen a remarkable turnaround. Streamlined operations, enhanced customer service initiatives, an increasingly competitive route network, a return to international flying and putting the airline in profit are all feathers in Hrdlicka’s cap.

With these accomplishments in mind: why step away now? Stability at the top is crucial as the airline prepares for future growth. CEOs often reconsider their decisions, especially when momentum is strong and opportunities remain.

While no official word has been given about Hrdlicka staying on, the facts—a strategic Qatar partnership, high-end property investments, and Bain’s current financial pursuits—point to more chapters left in her Virgin Australia journey.

If Jayne Hrdlicka goes, who’s in the running?

The consensus is that Paul Jones, an ex-Qantas employee and currently Virgin’s Chief Customer and Digital Officer, who has been driving the airline’s focus on customer experience, digital innovation, and overall service delivery is the leading internal candidate.

The issue with Mr Jones is his history with Qantas and the sacking of ground handling crew which was judged to be illegal.

In the Federal Court case involving Qantas and the Transport Workers Union (TWU), Justice Michael Lee criticized the testimony of Mr Jones, then Qantas’s Chief Operating Officer.

The justice described his evidence as “particularly troublesome,” concluding that Jones was “feigning a lack of recollection” and was “willing to fashion his evidence to suit Qantas’s case.” Ouch!

This assessment led the court to question the credibility of Qantas’s stated reasons for outsourcing its ground handling operations. Ultimately, the court found that the airline had acted unlawfully by outsourcing approximately 1,700 jobs to prevent employees from engaging in protected industrial action.

Jones’s role in the ground staff illegal sacking has earned the ire and opposition to his appointment by the TWU. The last thing Virgin needs is an industrial dispute.

2PAXfly Takeout

I have no inside knowledge of what’s on Jayne Hrdlicka’s mind. But, I’m thinking, why would you move on from leading one of the two major airlines in Australia that is just about to re-enter international flying and has what is looking more and more like a successful IPO in the near future?

It is a bet that the IPO will go well and would require some dedication to a few years of hard work. Risk and dedication are not outside Jayne Hrdlicka’s skill set.

The question is also, what would Ms Hrdlicka do next if she left Virgin? The Qantas CEO job is not open, and Hrdlicka, although successful at work with airlines, including as CEO of Jetstar, has not had great success in the recent past with other businesses. I’m talking about A2 Milk.

It’s always hard for an outsider to determine why a CEO prematurely leaves a company. The person in question wants to maintain their reputation, and Boards don’t like to admit they are wrong.

Hrdlicka left A3 Milk suddenly before the completion of her contract. This seems like a combination of the Board and CEO’s different visions, what some perceived as her underperformance, and the milk company’s declining fortunes.

She is good at airlines, so her options appear to be to stay at Virgin Australia or head offshore to lead another airline.

Could a 2025 surprise be in store? Time will tell, but it seems Jayne Hrdlicka might not be ready to pack her bags just yet.