John Borghetti reflects on his time at VA and hints at his future

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smit0847

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What it takes to get paid $2.77m: Virgin Australia’s John Borghetti says he’s ‘tried really hard’

Very interesting and frank story that I'm surprised hasn't been talked about here already. I found his 'we could cut costs in the short term but it would hurt us in the long term' comment interesting - its exactly the opposite of what QF are doing!
I don't really understand why he's taking 7 flights a week. I would have thought the majority of an airline CEO's role would be sitting in an office/board room pouring over figures, strategies. yields, inventory etc. I can understand needing to travel for press events, new destinations etc but VA don't do that many - I wouldn't think he would have time to take many flights?
 
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rlarosa

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I think the guy has done an absolutely incredible job. If you cast your mind back to what he started with and look at where the airline is today you can't not marvel at a job well done (in my opinion!)
 

Zerosignal

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I don't really understand why he's taking 7 flights a week. I would have thought the majority of an airline CEO's role would be sitting in an office/board room pouring over figures, strategies. yields, inventory etc. I can understand needing to travel for press events, new destinations etc but VA don't do that many - I wouldn't think he would have time to take many flights?

Status runs of course.
 

toowongman

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Just as a sales manager drops into their stores, JB taking a few flights keeps him close to the action.
 

williamsf1

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I don't really understand why he's taking 7 flights a week. I would have thought the majority of an airline CEO's role would be sitting in an office/board room pouring over figures, strategies. yields, inventory etc. I can understand needing to travel for press events, new destinations etc but VA don't do that many - I wouldn't think he would have time to take many flights?

he does attend a large number of industry meetings / conferences where he is a guest speaker
 

cove

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Mrscove is doing another tester in J today. She has been the unluckiest out of our family so hopefully this one to Sydney and back is an improvement this weekend. I would hope that JB has copped the mixed/ordinary product from time to time by flying a lot and has fixed stuff.
 

BAM1748

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It's important to get out and about, just to thank the customers you have today.

It's also import for him to test the service, yes I know the staff would know who he is but if he is good he would walk down to the toilet at the back just to make sure he is satisfied it's clean and flushes. He should also walk around a few gates at the airport for the same purpose.

Matt
 

ermen

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I don't really understand why he's taking 7 flights a week. I would have thought the majority of an airline CEO's role would be sitting in an office/board room pouring over figures, strategies. yields, inventory etc. I can understand needing to travel for press events, new destinations etc but VA don't do that many - I wouldn't think he would have time to take many flights?

actually, that is probably the job of his COO if he has one (or someone else to that effect). CEO's job is to go out and meet investors, customers, suppliers, staff, review / set / communicate the strategy. A lot of the nitty gritty is done by others...

Interesting article on bloomberg on CEO travel...
Death on a Moscow Runway: The Modern, Homeless CEO - Bloomberg
 

JessicaTam

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It would be interesting to see where the respective airlines would be if JB and AJ's roles were reversed. I am not trying to be inflammatory, just curious.
 

cove

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It had to happen. Mrscove finally got a modern A330.
In between time VA has been caught with Tiger and have had to acquire all of it and the losses. That is a tough one to fix because 90% of capacity is producing those results.
VA needs more premium customers and they need to stop subbing out planes that catch frequent fliers out as we can be running on very tight schedules. It is hard to have back up planes when one goes tech.
We need absolute reliability that a service will be running.
The capacity war was pretty stupid but in a free competitive business like our 2 main airlines have, VA had to be saved by the largest shareholders getting issued shares (lots of shares actually).
I was surprised by the size of JBs pay when the airline is losing a lot of money.
Mostly the product is right now so they have a chance of surviving by getting to break even in the next 2 years.
 

maninblack

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I can't agree that the product is right at all, especially in J but it's okay in general. Share price is in the dumps and it's hard to see where revenue growth is going to come from. CEO gets a passing grade but nothing more.
 

amaroo

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It would be interesting to see where the respective airlines would be if JB and AJ's roles were reversed. I am not trying to be inflammatory, just curious.

He would have had to clean up the same stinking mess that accumulated during the 36 years he was involved with QF.
 

jaspon

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I think JB lives in SYD, so he's probably up to the BNE office a couple of times a week.
I would think the fact he is out and about in lounges/terminals/ aircraft regularly is a good thing , as he would have his finger on the pulse of what's going on with guests but staff as well
 
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I was surprised by the size of JBs pay when the airline is losing a lot of money.
Mostly the product is right now so they have a chance of surviving by getting to break even in the next 2 years.
I thought he would have been on more TBH.

As for the airline being "right now"....I'd disagree.

My take is that JB was good news for VA and JB did indeed make dramatic changes...and did it exceptionally well for a short time, but he seems to have run out of puff (or cash, or both) before reaching the finish line. He's the Jamie Whincup of the airline race. He may even see the blunderer who's been bouncing off the concrete for most of the race, pass him at the finish!
 

carwashhair

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I think JB lives in SYD, so he's probably up to the BNE office a couple of times a week.
I would think the fact he is out and about in lounges/terminals/ aircraft regularly is a good thing , as he would have his finger on the pulse of what's going on with guests but staff as well

I could swear I saw him in Annandale cellars the other month, putting a sizeable dent in the shops stocks (and in that salary, judging by the labels!). Quite short if I recall, but impeccable taste :)
 
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