Australia

Virgin Australia CEO resigns after signing a life-saving deal with Bain Capital

Virgin AustraliaPaul Scurrah, CEO of, will resign from his role in the coming weeks. Airline sales Bain Capital has been confirmed for a private equity firm in the United States.

Mr. Scholar is expected to remain Virgin’s CEO and Managing Director until at least early November, until the final deed agreement is finalized.

“For the past 18 months, I have had the great privilege of becoming CEO and Managing Director of Virgin Australia Group,” Scurrah said in a statement released today by Virgin.

Virgin Australia CEO Paul Scholar has resigned. (Louis Kenary)

“It was the most difficult time in aviation history, but I’m very proud of how the team and the entire organization have fought to save the airline and maintain competition in Australia.

“We have not only guaranteed the future of the company, but have also succeeded in resetting our business so that it can be offered to Bain Capital over the years to come.

“I’ve seen the company through COVID-19, self-management, sale to Bain Capital, and business redesign, but I’m resigning as CEO and Managing Director.

“I made this decision after a long discussion with my family. I feel the time is right and I am confident that the business is going well.”

Mr. Scholar will resign within a few weeks after the airline’s sale to US private equity firm Bain Capital is complete. (Getty)

Deloitte’s administrator, Vaughan Strawbridge, who helped develop the Virgin Lifesaving Bain deal, said the airline’s future does not include an overall change in how it operates.

“There are speculations about the shape of the airline in the future, and we reaffirmed to Bain Capital that Virgin Australia will not be relocated as a low-cost carrier,” Strawbridge said in a statement.

“Virgin Australia is a” hybrid “airline that offers great value to its customers by offering a unique virgin experience at competitive prices.

“This will appeal to all travelers, from premium companies to budget-conscious customers.”

Virgin Australia Jet (Getty)
After the second creditors meeting in September, managers officially sold Virgin Australia to Bain Capital. (Getty)

Mike Murphy, managing director of Bain Capital, praised Mr. Skala for his work today at Virgin, but also said that airlines need different types of leadership to survive in the future.

“The challenges faced by all airlines are extraordinary, and Virgin Australia needs different forms of leadership to survive in the long run,” he said in a statement.

“Given the environment, we need a CEO with deep experience in aviation, commerce, operations and transformation.”

Virgin Australia Airlines
Airlines are not expected to shift operationally to become “low cost” airlines like Tigerair Australia. (IStock)

US executive Jane Frudrika, who previously worked for Qantas and Jetstar, has been appointed today as Virgin’s next CEO.

“We appreciate Virgin Australia’s unique culture and want to protect and build it. Virgin Australia embraces the diversity, talent and strength of its people while embracing its strong brand and passion for customer service. I’m sure it will rejuvenate, “she said.

Meanwhile, the Australian Services Union has sought to be clearer from Bain’s commitment to protecting the work of Virgin staff, saying a move to low-cost businesses would put them at risk.

“Bain has a duty to be honest with Virgin employees about their plans,” ASU Assistant National Secretary Emering Gasquet said in a statement.

“They have experienced absolute hell for the last seven months, while COVID, standdown, redundancy, and management drive payment and terms reductions.

“In addition to this bain, it is unacceptable to try to reduce the condition of workers to bones.

“Workers are now facing the catastrophic outlook that there will be no more jobs at the end of this trial.”

Since then, the Australian Service Union has expressed concern about the work of thousands of virgin workers. (AAP)

Despite those concerns, Murphy said Bain still plans to protect those jobs.

“This year is the toughest year in the history of aviation in the world, airlines around the world are struggling to survive, and the Australian industry continues to face the challenge of ongoing border closure,” he said. It was.

“We are working on a strategy announced by Virgin Australia in August. The company outlines plans to protect thousands of jobs, invest in technology and respect the eligibility of all employees. did.”

Place of originVirgin Australia CEO resigns after signing a life-saving deal with Bain Capital

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