Richard Branson tells staff function industrial action by Virgin cabin crew could lead to Ansett-style fail

Sir Richard Branson– who has been in the country on a public relations tour to talk up his cruise line – said any potential airline strike could be damaging in a speech that was captured on a mobile phone camera in Australia.

Sir Richard Branson has labelled the threat of industrial action by Virgin Australia cabin crew as potentially “very, very, very, very, very damaging” and said the airline could fail like Ansett if the dispute persists in an extraordinary speech captured on camera.

The billionaire’s comments come after the Transport Workers’ Union said Virgin’s cabin crew were worried about their working schedules, which they claim have included back-to-back rosters that have forced them to work while fatigued and to also skip rests.

Crisis talks overseen by the Fair Work Commission were held last week and more negotiations are due to be held in coming days ahead of the bustling Christmas holiday period.

A screenshot of the video, in which Richard Branson speaks at a staff function. Picture: Supplied

A Virgin Australia plane lands at Adelaide Airport. Picture: NCA NewsWire / Morgan Sette

Sir Richard – who has been in the country on a public relations tour to talk up his cruise line – said any potential strike could be damaging in a speech that was captured on a mobile phone camera in Australia.

“In 50 years in business, I’ve never, ever had a strike or a strife or a public disagreement with our team, this is actually the first time we’ve ever come close to something like that and it’s a horrible feeling and its potentiality very, very, very, very, very damaging,” he told the crowd.

“Even right now people are not booking Virgin Australia because they’re worried about what might happen.

“I just would urge both sides just quietly sit down in a room, get it sorted, think about all your other employees.”

Richard Branson addressed staff at a Virgin function in Australia. Picture: EdithRum

Virgin Australia is owned by US investment firm Bain Capital, which bought it in 2020 when it was under administration amid the pandemic.

A union ballot was held last week. Almost all of participating Virgin cabin crew voted for action unless an agreement could be reached to improve pay and for them to gain more reasonable hours.

Sir Richard – a co founder of Virgin Australia – said talks between Virgin managers and the union should happen “quietly” and warned the airline could go the same way as Ansett if the dispute drags on.

Sir Richard Branson on the Sydney Harbour Bridge last week. He was in Sydney for the first Virgin Voyages cruise ship, the Resilient Lady arriving for the first time. Picture: Jonathan Ng

“Managers have to manage for the long term to keep Virgin Australia going in five years, 10 years, 20 years,” he said in the video.

“Unions have to try to get the headline numbers in the short term.

“If one section of Virgin Australia goes too far, that means every other section’s going to have to go too far, and very quickly the same thing that happened to Ansett could happen to Virgin Australia.

“I’m just saying, it’s really important that these sorts of discussions, they should happen quietly, we should all be on the same page, we are one company, we should not be arguing publicly, we should be trying to get these things sorted out because otherwise we’re just playing into the hands of Qantas and Jetstar and (others).”

Virgin pilots will also discuss a return to pre-pandemic hours and pay on Monday.

A Virgin Australia spokeswoman said: “On Friday, we met with both the TWU and FAAA, as part of a mediated process with the Fair Work Commission. Those discussions were constructive, and will continue this week. We remain committed to a quick resolution that works for all parties.”