Virgin rules out ex-Qantas exec Paul Jones as next CEO after pressure from union and Albanese government

Virgin Australia has sensationally moved to end speculation about the airline’s next chief executive, declaring ex-Qantas executive Paul Jones is not in the running.

A statement issued by the board of Virgin Australia said Paul Jones would not be the company’s next CEO, and nor had they made a final decision on Jayne Hrdlicka’s successor. Picture: Bloomberg

Virgin Australia has moved to end speculation about the airline’s next CEO, confirming that chief customer and digital officer Paul Jones will not replace Jayne Hrdlicka.

A statement issued by the board of Virgin Australia said Mr Jones would not be the company’s next CEO, and nor had they made a final decision on Ms Hrdlicka’s successor.

It’s understood Mr Jones made a personal decision to withdraw from the race, after months of pressure from the Transport Workers Union.

The union’s objection stemmed from Mr Jones’ previous role at Qantas at the time of the illegal outsourcing of ground-handling workers in 2020.

In a decision tested in the full Federal Court and the High Court, Federal Court judge Michael Lee found Mr Jones was motivated by an unlawful reason when he recommended the outsourcing of the below-the-wing workforce.

This week Employment Minister Murray Watt voiced his own reservations about Mr Jones’ suitability, due to his involvement in the Qantas scandal.

Virgin Australia chief customer and digital officer Paul Jones. Picture: Dallas Kilponen

At a doorstop with TWU leader Michael Kaine, Senator Watt said “most Australians would like to see Virgin choose a CEO with a demonstrated record of putting their workers and the public first”.

“It took the TWU with the support of the then Albanese Opposition to stand up to Qantas about the way it illegally sacked its workforce during the pandemic and did a range of other things to hurt its workforce,” Senator Watt said.

“I would certainly hope and expect that Virgin would think about that when it comes to its choice of CEO.”

Mr Kaine previously made his feelings about Mr Jones clear when he was first named as a frontrunner for the top job in mid-2024.

The TWU then raised the stakes, informing Virgin Australia and its owner Bain Capital the union would pull its support for a partnership with Qatar Airways, if Mr Jones was appointed CEO.

On Friday, Mr Kaine was quick to welcome Virgin’s shock announcement saying it would bring “a collective sigh of relief from Virgin workers”.

“It was disturbing in the extreme that Bain Capital would even have contemplated appointing one of the key instigators of the illegal sackings of 1800 workers at Qantas,” he said.

“The TWU and Virgin workers were instrumental in getting Virgin flying again after it lapsed into administration in 2020, left to languish by the Morrison government that refused to intervene.”

He said the TWU hoped this marked the “end of Bain’s dalliance with a potential Alan Joyce model of adversarial industrial relations”.

Neither Virgin Australia nor Bain Capital would expand on the statement issued just before 5.30pm AEDT on Friday.

Virgin Australia CEO Jayne Hrdlicka. Picture: Getty Images

It’s expected Bain will continue its search for a new CEO, after it was announced a year ago that the board had decided “now was the time” for Ms Hrdlicka to transition from the job.

The extended transition period was believed to be due to the planned sale of a 25 per cent stake in Virgin to Qatar Airways, which is subject to Foreign Investment Review Board approval, and that of Treasurer Jim Chalmers.

Bain is sweating on a decision before the federal election is called — which would further delay the process.

Virgin Australia is also awaiting a draft determination from the Australian Competition and Consumer Commission for new international flights, to be operated by Qatar.

The wet lease arrangement is part of the deal with Qatar, which will provide aircraft and crew for the flights being marketed and sold by Virgin.

The draft decision is expected as early as next week, providing more certainty to travellers who have booked seats on the flights to Doha, which went on sale in December.

There have been no other clear frontrunners for the role of Virgin CEO despite a global search by recruitment firm Korn Ferry.

If the sale to Qatar Airways goes ahead as planned, it’s expected a new chief executive will then guide Virgin Australia to an IPO.

Preparations for an initial public offering began in 2023 but were derailed by poor market conditions and the departure of key staff.

At this point it is unclear if Ms Hrdlicka might be asked to stay on, in the absence of a suitable replacement.

The 63-year-old recently splashed out $16.9m for a three-storey beach house overlooking Laguna Bay at Noosa Heads.

Ms Hrdlicka also has a property at Teneriffe in inner Brisbane, which she purchased after relocating from Melbourne when she was appointed Virgin CEO in November 2020.

Asked late last year what her plans were post-Virgin, Ms Hrdlicka said she did not really know but indicated she would focus more heavily on tennis.

Her “second job” as chair of Tennis Australia is up for renewal at the end of this year.

Originally published as Virgin rules out ex-Qantas exec Paul Jones as next CEO after pressure from union and Albanese government