Departing Virgin CEO downplays speculation about Qatar stake

Aircraft delivery delays have compounded Virgin Australia’s challenges, according to outgoing CEO Jayne Hrdlicka, who described the second half of the financial year as “super tough.”

Hrdlicka dismissed rumors about Qatar Airways seeking a stake of up to 20% in the airline as “creative fiction.”

She mentioned that Virgin was acquiring aircraft from Rex after the regional carrier went into voluntary administration on July 30. However, supply chain and quality control issues have slowed down the arrival rate of the new Boeing 737 Max 8.

During the CAPA Airline Leader Summit in Brisbane on Sep. 13, Hrdlicka revealed that Virgin would convert 12 orders of Boeing Max 10s to Max 8s to aid fleet expansion.

“This will provide us with more flexibility as we navigate the challenges faced by both Boeing and Airbus in rebalancing their supply chains,” she explained.

Addressing speculation about Qatar Airways seeking a stake in Virgin Australia, Hrdlicka stated that there had been a lot of fictional reports about a potential deal.

“We don’t entertain rumors and gossip, but what I can say is that we have the world’s best airline partners—United Airlines, Air Canada, Singapore Airlines, Qatar, ANA, Hawaiian—and we are actively working to enhance these relationships and improve the customer experience,” she concluded.

Hrdlicka emphasized the importance of Virgin competing not only in the domestic market but also internationally through partnerships with overseas airlines to create a customer experience that matches or exceeds that of competitors.

“Our international partners are crucial to us since we do not operate a long-haul international business ourselves,” she noted.

Hrdlicka assumed the role of CEO in November 2020 after Bain Capital, a U.S. private equity firm, rescued Virgin Australia from administration during the global COVID-19 pandemic.

Part of the challenge involved restructuring the airline’s location, fleet, and operational complexities that had been impeding progress and causing increased costs.

“We were attempting to position ourselves as the top premium airline based in Australia, which was an unattainable goal,” she admitted.

“We have learned valuable lessons.

“We are determined not to repeat past mistakes.

“The second half of the financial year was extremely challenging, and the loss of Bonza and Rex demonstrated the severity of the market conditions.

“Despite the tough environment, we are proud to achieve positive results and financial performance.”

Hrdlicka announced her resignation in February without specifying an exact departure date.

Her tenure as CEO included some of the most difficult personal experiences she has faced.

“I lost my husband to cancer, and more recently, my father passed away,” Hrdlicka shared.

“I need to dedicate more time to my sons, aged 17 and 19, and I have a strong passion for tennis.”

Since 2017, Hrdlicka has served as the Chair and board president of Tennis Australia.