After yesterday’s announcement by Virgin Australia-owner Bain Capital that it was looking at re-listing the airline, the carrier has set up a “small internal team” to prepare for its possible return to the ASX.
The team will “exclusively” work on pitching Virgin’s float, Virgin Australia CEO Jayne Hrdlicka said in an email to staff and in a town hall meeting.
Obtained by AFR, the message came as Boston-based Bain Capital said it would “shortly seek advice on a potential future IPO and re-listing” of the airline.
In a statement, the US private equity firm said “advisors will report to Bain Capital on the best timing, structure, and metrics to return Virgin Australia to the ASX when the timing is right”.
“No decisions have been made as to when or even if any IPO will happen,” it stated.
A Sydney-based partner at Bain, Mike Murphy, said the firm would consider “how best to position Virgin Australia for continued growth and long-term prosperity” in the coming months.
“While there is currently no set timetable, at some point in the future, if any IPO does happen, Bain Capital would welcome public market investors joining as shareholders in what is a great Australian company,” he remarked.
“It is Bain Capital’s current intention to retain a significant shareholding in a future IPO of Virgin Australia.”
After it went into administration, Bain acquired Virgin for AU$3.5 billion in September 2020.
Workers need reward
Meanwhile, the Transport Workers Union (TWU) has urged that the airline’s workers be prioritised in any potential float of the carrier.
According to TWU National Secretary Michael Kaine, it was time Virgin rewarded workers for their dedication to the airline through the hard times.
“Virgin’s passionate and loyal workforce have stood by the company through incredibly tough times, and worked hard through immense workload pressures to ensure the business returned as a strong competitor,” he said.
“With a float now on the cards, workers must be rewarded for their crucial role in the company’s success.
“While the TWU welcomed Virgin’s announcement that it would introduce a bonus profit share scheme and additional reward payments, “there is now work to be done to improve conditions for aviation workers who have sacrificed so much for the company.”
