Virgin CEO Paul Scurrah will leave the airline in weeks
Virgin CEO Paul Scurrah will leave the airline within weeks to make way for a controversial American airline executive.
Business
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Virgin Australia CEO Paul Scurrah has resigned and will leave the airline when new owner Bain Capital formally takes ownership early next month.
Mr Scurrah’s imminent exit, as reported by The Courier Mail on Wednesday, is expected to cause chaos at the airline with other executives expected to follow him out the door.
Deloitte Administrator Vaughan Strawbridge, who led Virgin out of administration, said Mr Scurrah provided “exceptional leadership” which helped “stabilise the business and achieve a sale”.
“It’s a testament to his leadership that we have been able to complete this sale and the business is well positioned to play its vital role in the rebuilding of the Australian aviation industry and economy more broadly,” Mr Strawbridge said.
Mr Scurrah on Wednesday brushed off speculation he would be replaced but on Thursday revealed, “after some long discussions with my family”, he would leave.
“The time feels right and I know the business will be in good hands,” he said.
Bain Capital advisor and former Jetstar boss Jayne Hrdlicka will be appointed CEO once the sale to Bain is complete in early November, Mr Scurrah said in a statement to the ASX.
Mr Strawbridge said the carrier would not transition to a low-cost airline.
“I know there has been speculation about the shape of the airline into the future, and I have reaffirmed with Bain Capital that Virgin Australia will not be repositioned as a low-cost carrier,” he said.
“Virgin Australia will be a hybrid airline, offering great value to customers by delivering a distinctive Virgin experience at competitive prices.
“This will appeal to the full spectrum of travellers, from premium corporate through to more budget-focused customers.”
The appointment of Ms Hrdlicka is expected to infuriate the Transport Workers Union, which suspended enterprise negotiations with the airline on Wednesday following speculation about her appointment.
Mr Scurrah was appointed CEO of Virgin in early 2019 following the departure of long-time boss John Borghetti.
After a decade of financial losses Mr Scurrah had worked to cut costs and transition the airline before it was smashed by the COVID-19 pandemic.
“Whilst it has been the most challenging time in aviation history, I have continued to be so proud of the way my team and our entire organisation has fought to save this airline and to keep competition alive and in Australia. We have succeeded in not just ensuring the future of the company, but also reset the business to ensure it is well placed to deliver for Bain Capital for many years to come,” Mr Scurrah said on Thursday.
“I want to thank all of our team members who have continued to support and work tirelessly to get the company through to this stage.
“I will forever be proud of what we have done here. It is the people that make this airline the great place it is and I wish them all the best.
“I was extremely humbled by the warmth with which I was embraced on day one and for the unwavering support afforded to me throughout this ongoing major industry crisis.”
Mr Scurrah also praised incoming CEO Ms Hrdlicka’s “strong aviation credentials”.
“She is very focused on seeing the business succeed and I wish Virgin Australia well under her leadership,” he said.
Originally published as Virgin CEO Paul Scurrah will leave the airline in weeks
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