Virgin Australia keeping quiet on new CEO almost a year after announcing Hrdlicka’s ‘transition’

Almost 12 months since Virgin announced Jayne Hrdlicka would transition out of the CEO role, she is still there after a momentous 2024. Is she just too good to let go?

As aviation mysteries go, the case of Virgin Australia CEO Jayne Hrdlicka is not in the same league as the disappearance of MH370, but it remains a source of widespread industry intrigue.

Almost a year after Virgin announced “Ms Hrdlicka with the board’s support has decided now is the time to transition on from the role of CEO”, she remains firmly at the helm of the airline.

It’s a situation no one is willing to explain after the shock of last year’s sudden announcement, on February 20, suggesting her departure was imminent.

Hrdlicka had only been in the role for just over three years, having taken the helm in November 2020, and had recently finalised the sale of her Melbourne home after relocating to Brisbane, where Virgin is headquartered.

At the time, sources within Virgin revealed the surprise announcement was the result of discontent within Bain Capital — the US private equity firm which bought the airline from administration — over Virgin’s operational performance, the loss of key staff and Hrdlicka’s high-profile “other” role as Tennis Australia chair.

Two of the three people responsible for taking Virgin to an IPO had left, and there was a view Virgin had failed to capitalise on the reputational woes of rival Qantas.

It was also accepted Bain Capital was a ruthless operator and would not hesitate to act against its top executive if she was not delivering the returns expected, regardless of the fact Hrdlicka had lost her husband to cancer in 2023.

But, if the news of Hrdlicka’s impending departure was a surprise, what followed was perhaps even more surprising.

Virgin Australia CEO Jayne Hrdlicka has described the deal with Qatar Airways as a “career highlight”.

Month after month went by without any sort of update from Virgin or Bain on a new CEO, despite the appointment of Miami recruitment firm Korn Ferry to undertake a global search for a replacement.

By mid-year it became apparent Hrdlicka was not going anywhere fast, and in fact seemed to be pulling out all stops to silence her detractors and show just how valuable she was. New work agreements were struck with cabin crew and pilots, Virgin Australia’s operational performance improved, and a bumper $545m full-year profit delivered.

But, the best was yet to come when the worst-kept secret in aviation was confirmed; Qatar Airways was to take a 25 per cent stake in Virgin Australia, and provide aircraft and crew for the airline’s return to long-haul international flying.

The deal, though subject to government and regulatory approval, was considered a coup for Hrdlicka, and testimony to her business acumen, providing Virgin with the backing it needed to compete more evenly with Qantas and Emirates.

Promoting the partnership with the airline named the world’s best in 2024, Hrdlicka took on a much higher profile, leaving no doubt she was still very much in charge of Virgin Australia.

A fresh set of professional pictures only reinforced that view, with a beaming Hrdlicka posing with members of Virgin and Qatar Airways’ crew, as well as on her own in front of Qatar aircraft.

Virgin Australia CEO Jayne Hrdlicka. Picture: Getty Images

Asked in December if she would be on the first Virgin Australia flight to Doha expected in June, she replied “most certainly”.

“I didn’t say in what capacity,” she added, when asked if it meant she was sticking around as CEO. “At some point we will transition this year.”

There is a view said transition could occur when final approvals are granted for Qatar’s investment in Virgin Australia and the green light given for the wet lease flights.

A wet lease is when one airline provides the aircraft and crew for flights marketed and sold by another.

Virgin has cleared the first hurdle, with the consumer watchdog providing interim authorisation for the new daily flights to Doha, allowing the services to go on sale.

A final decision is expected in March or April, with the Foreign Investment Review Board likely to deliver its verdict on Qatar’s 25 per cent acquisition at the same time.

It would mean a new CEO could be installed by mid-year, and then lead Virgin to an IPO, with Qatar the cornerstone ­investor.

It’s hard to imagine Hrdlicka passing on the chance to do that herself after revealing in September how she loved her “purposeful job”. But, there is certainly a sense now that if she wanted to stick around, she could, especially if the Qatar deal comes off as planned.

Originally published as Virgin Australia keeping quiet on new CEO almost a year after announcing Hrdlicka’s ‘transition’