On Thursday, Virgin Australia’s chief executive Paul Scurrah announced he would be standing down as the airline’s top dog. He will be replaced by former Jetstar boss Jayne Hrdlicka in early November, when Bain takes full control of the airline from administrator Deloitte.
The US-based carrier, which is the seventh largest airline in the United States by passengers carried, has focused on a domestic presence rather than dipping into international routes. Their model offers low cost fares and a unique ‘pay by row’ model. Bain committed to that vision in its bid to buy the airline, but trade unions now fear it will change plans and take it down a budget route instead.
“The only way you make money domestically or internationally is a decent premium component for the poor yields in economy,” he said. In a statement, however, Deloitte administrator Vaughan Strawbridge said he believed Bain would not turn Australia’s second airline into a low-cost carrier. Deloitte administrator Vaughan Strawbridge said he believed Bain would not turn Australia’s second airline into a low-cost carrier. Picture: NCA NewsWire / Christian GillesUnions are concerned about what the leadership change means for the future of the airline and whether jobs will be kept if it goes low-cost.
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