Recently I wrote about my frustrations as a long-time Virgin Australia customer and Velocity member, regarding Virgin's continued refusal to join a global alliance and current lack of strategy and momentum. I've flown Virgin Australia more than any other airline (probably 100+ flights), held elite status in Velocity for many years, and earned and redeemed…
Continue reading: Virgin Australia’s CEO Resigns: What’s Next For The Airline?
Share your questions, experiences, and thoughts below.
What a really well written article, I especially enjoyed how you were able to acknowledge his achievements whilst respectfully speculating about Virgins future without him.
Shareholder returns and customer satisfaction & benefits are usually inversely correlated in airline industry.
Best examples are BA and LH that reap billions in profits but pay lip service to customer satisfaction.
Have to wait and watch which direction this airline is headed...
@Debit
Much of the focus at Virgin, at least in recent times, has been of squabbles with the large shareholders, most notably Air NZ. Small and individual shareholders have been squeezed out via an ill-considered buy-back ( which looked to have more to do with preparation for de-listing/privatisation than any rational consideration).
The price today is 22 cents ( USD 0.18) and they haven't made a profit for more than one or two of the past 10 years.
It looks inevitable that one of the shareholders, either SQ or the Chinese ( maybe even jointly) will take over. That wouldn't resolve the alliance issue , unless Air NZ would agree to Star Alliance membership.
@Debit
We care (even as non-shareholders) because if the share price is lousy and shareholders are not receiving returns it means the airline is not profitable. If the airline is not profitable it will probably fail. If it fails there will be nothing to review. And this website is built around reviews. So that is why we care......
Just out of curiosity, why Skyteam as the most possible alliance? Given the ownership structure, shouldn’t *A be the most possible since SQ holds a high share amount and could sponsor VA entrance.
@ JW - have a read of my previous VA article linked at the top of this one where I evaluate the likelihood of each alliance. Basically UA and NZ both don't want Virgin in Star Alliance so will use their veto rights to block any application.
There are less enemies in SkyTeam than Star basically.
@James I've really appreciated your articles since joining the blog. I'm a 2 year + long term world traveler and your articles on European LCCs and multimonth have been particularly helpful. I know you took some flack from your prior article on John Borghetti but you were spot on. Please don't let the naysayers discourage you from similar articles in the future.
@ James
Adding you was a great pick for this blog. You have vastly expanded the usefulness here.
Very interested to see where the airline goes from here. As discussed by James, Virgin was transformed under Borghetti's leadership. For domestic frequent flyers between metropolitan areas Virgin now represents a credible alternative to the Qantas network. However their lounge network is still lacking outside of large cities and international partnerships remain flakey as the slow heat-death of the Etihad universe continues...
I think the best issue is there are so many competing ownership stakes that there isn't a plurality or majority shareholder with a true commitment to making Virgin Australia a truly profitable, leading airline in the region or internationally because that could undercut their own airline/interests. Virgin Australia needs someone to take a 49% stake. And, hopefully, not Delta.
Worked for the the bloke for almost 3 years. Changed the airline in plenty of positive ways before and while I was there but plenty of negative ones also
In the 3 years I was there moral plummeted. 0 hour contracts, lack of training/support, superiors with no experience... Etc etc.
Also a complete tyrant in person. People were actually scared of him. Definitely not the approachable fun loving type that you would have expected from the Branson branch.
Virgin was a sexy, fun brand built on the passion it's team had for the airline and in the amazing experience it's team and product provided to guests. In just the short time I was there people were leaving in droves feeling unappreciated and undervalued. (I personally left for career progression but loved working there because of the people)
Fair play to him for his achievements but Good riddance some new blood will be exciting for the company and the great people that still work there.