Jayne Hrdlicka to resign as CEO

[BAM1748]

As mentioned in another post, if JH had a falling out with Bain she would've been leaving immediately with the acting CEO already named and already positioned in her office as they start their search for their next hand picked CEO

That is an opinion like my own. Us mere passengers will never know.

 

[jakeseven7]

I'd be guessing, but a falling out with the Board seems likely. But the Board should always have someone in mind to replace the CEO/MD which in this instance the Board seems to have fallen down.

Anything is possible. Like the mess she was involved with at A2 I’m sure we will hear more as people start talking. Apparently there wasn’t a wet eye at Southbank though

 

[jase05]

Apparently there wasn’t a wet eye at Southbank though

I wouldn’t imagine too many wet eyes when many CEO’s leave. Most are disliked or even hated by their workers and colleagues

 

[RooFlyer]

To make that analogy fit it might need to be the investment property with the reverse mortgage, cross-collateralised with other investment properties and with the land subdivided, sold to another invester and leased back.

Fair enough, but the question still is, do you sell into a falling market, when you don't really have to sell at that time?

Some experts and 'insiders' here apparently would, or consider it a 'fail' that Virgin didn't.

I still think Hrdlicka leaving has much to do with Bain deciding they can't wait for the IPO to start the new re-build strategy and want someone new to drive it now.

 

[evanb]

Her husband passed away a few months ago and she has two teenage kids. Consider that sometimes personal and/or family life may take precedence.

 

[Bagpuss]

Blind Freddy saw that one coming.

A bunch of Bain plants have now been moved on, they missed all their windows (and hefty bonuses!).

Now it will be most interesting what type of management they put in - and what will their mandate and end goal will be. Firstly it will have to be to try and stabilise the operations which are a mess. But then what… same strategy, different suit?

What a mess.

To note, CEO's are appointed by the board. CEO's are not appointed by shareholders or noteholders in line with the ownership model of Virgin Australia.

 

[Must...Fly!]

My inside source tells me that all Va's profit from last year went to paying for staff wàge increases and they are in no postion to list on the stock market for now....

I'd say that's pretty close to the mark given they're facing a $25m operational overspend this FY.

This was always going to happen, they missed the window. I tend to think Bain will have to be satisfied with being in it for the next 5 years if they want the chance of a big pay day. Otherwise there will be options to sell at a more meagre number.

 

[Quickstatus]

Consider that sometimes personal and/or family life may take precedence

Sure, but a lot of these public figures frequently give the "spend more time with family" excuse, but then within a month or two they are jetting off to another high powered job.

Slightly different in JH's case when the "family" excuse was used in the A2 resignation.
Cue Joe Ashton formerly AFR who pointed out the JH's A2 resignation on "Family " grounds were made after the fact when in fact she was pushed out...

 

[Quickstatus]

I'd say that's pretty close to the mark given they're facing a $25m operational overspend this FY.

$33M spent on Bain consultants while at A2, then while at VA², she spent "Bain's profits" of $25m on increasing wages.
So can we say that JH has now more or less "balanced the ledger"

 

[Must...Fly!]

$33M spent on Bain consultants while at A2, then while at VA², she spent "Bain's profits" of $25m on increasing wages.
So can we say that JH has now more or less "balanced the ledger"

There wouldn't be an airline if they didn't have the staff. So I don't really get your point. A2 is probably irrelevant to VA industrial issues.

 

[Bagpuss]

I'd say that's pretty close to the mark given they're facing a $25m operational overspend this FY.

In terms of an airline that's pretty much nothing.

That's almost a quarter of the capex spend on the new aircraft seating to put into perspective.

 

[RooFlyer]

Olivia Wirth. Just say'n.

 

[jase05]

Olivia Wirth. Just say'n.

Her name keeps on popping up amongst staff

 

[RooFlyer]

Her name keeps on popping up amongst staff

Qantas or Virgin?

 

[jase05]

Qantas or Virgin?

QF staff.
She would be leading the office sweepstakes currently

 

[Quickstatus]

point

Was tongue in cheek

Olivia

And JH was also at one time Head of QF Loyalty. Similarities...

 

[GoldenTouchdown]

Regarding Liv, I wonder if Bain thinks she's "Wirth" it?

 

[Must...Fly!]

In terms of an airline that's pretty much nothing.

That's almost a quarter of the capex spend on the new aircraft seating to put into perspective.

Agree in normal business times but it's not exactly ideal if you're looking to prove that you're an efficient business with reliable forecasts and have a controlled cost base. All of which are necessary for a successful float,I would say.

 

[justinbrett]

Brad Banducci

 

[eastwest101]

$33M spent on Bain consultants while at A2, then while at VA², she spent "Bain's profits" of $25m on increasing wages.
So can we say that JH has now more or less "balanced the ledger"

If I remember correctly a lot of VA staff took pay cuts to save their jobs in 2020 & 2021 along with a lot of redundancies, so this $25M of "increasing wages" would be somewhere along the path to recovering the wages and conditions that were lost in 2020? Bain needed to do the sale before the other shoe dropped and interest rates started rising, and everyone realized how baked-in inflation would be...... They have operated the airline on an emergency footing/cash preservation minimum expenditure basis, which is fine for short-term survival, but fatal to a long-term capital-intensive business.

Bain are going to find it incredibly difficult to find competent experienced airline management (not highly paid dog & pony show salesmen with PowerPoint decks) - given the well-telegraphed short-term nature of the tenure of any replacement to Hrdlicka.