Virgin Australia’s Chief Executive Jayne Hrdlicka, the airline’s first female CEO has announced she is leaving Australia’s second biggest airline after returning the fledgling business to the black. Still, the departure dents the chances of the company relisting on the ASX.
“I have decided the time is right for me to signal CEO transition for this great airline and ultimately to pass the baton on,” Ms. Hrdlicka said.
Born in Wichita, Kansas, and educated at Colorado College followed by an MBA at Dartmouth, Ms. Hrdlicka emigrated to Australia in 1994 to head a Sydney-based company that produced sports trading cards. This was followed by executive positions at Jetstar Group and Milk Co. Currently, she serves as Chairwoman of Tennis Australia.
She took the reigns at Bain Capital-owned Virgin in November 2020, and guided the company out of voluntary administration, becoming the first major airline in Australia to do so.
Virgin Australia was placed into voluntary administration in April 2020 with debts totalling $6.8 billion (US$4.5 billion), after the Australian government refused a bailout.
The company was sold after a $3.5 billion offer by Boston-based investment firm Bain Capital in August 2020 was ratified by creditors in September of that year.
On her first day, she announced the exit from voluntary administration with optimism saying, “We exit with a renewed sense of who we are and who we are here to serve. Virgin Australia is an airline built on a 20-year history of exceptional customer service and delivering a great experience for millions of Australians. Today.”
She was credited with the introduction of cheaper airfares that afforded travellers a premium experience across three ticket classes, an integrated mobile app, simplifying check-in procedures by implementing new technology, and rebooting the airport lounge experience.
“This is not a decision I have taken lightly, but the last four years have been heavy lifting across the organisation during the toughest of times,” Ms. Hrdlicka said on her intentions to leave.
She told Virgin staff that she was “grateful for the opportunity to be part of this very special culture.”
Ms. Hrdlicka’s plans to leave will most likely result in a delay to Virgin relisting on the ASX with an initial public offering (IPO), say analysts. Her impending departure comes mere months after the resignation of David Marr, a Chief Development Officer who was tasked with preparing for a float.
Despite analysts’ predictions, Ms. Hrdlicka’s statement confirmed an IPO was planned for the March quarter and she said now was the right time to step down as the company shifted its trajectory.
“The next phase of this journey is another three to five years, making now the perfect juncture to begin the process of leadership transition.”
Virgin announced on Feb. 20 they would soon begin a global search process to replace Ms. Hrdlicka. She will remain in her capacity as the chairwoman of Tennis Australia.
