Last chance: Virgin Australia boss Jayne Hrdlicka warns against strike action

Virgin Australia chief executive Jayne Hrdlicka has warned that threatened strike action by cabin crew could threaten the long-term viability of the airline.

Virgin Australia boss Jayne Hrdlicka has warned that threatened strike action by cabin crew could hurt the long term viability of the carrier.

In an email to staff on Monday, Ms Hrdlicka said Virgin was unlikely to get another chance if it did not keep costs under control in the brutally competitive airline business.

Virgin, which was rescued out of administration by Bain Capital in 2020, has reported its first positive result in 11 years after losing an estimated $2bn in the previous decade.

Crisis talks in the Fair Work Commission last week failed to resolve the threat of industrial action by Virgin cabin crew during the busy Christmas holiday period.

Ms Hrdlicka said she hoped that strike action did not occur given the ongoing constructive negotiations and the need to build a sustainable airline.

“It is just over three years since Virgin Australia came out of administration, and through your combined efforts and commitment, and the backing of our investors, we are rebuilding a stronger, more sustainable airline,” Ms Hrdlicka wrote.

“Under our new ownership, Virgin Australia got a second chance and thousands of jobs were saved. In fact, every person who lost their job has been given the opportunity to come back. We have all, collectively, done an incredible job of turning this airline around. The airline industry is anything but easy. We have just posted our first positive financial result in 11 years after losing $2bn over that decade.”

Virgin Australia chief executive Jayne Hrdlicka: ‘We have all, collectively, done an incredible job of turning this airline around.’

The Transport Workers’ Union (TWU) said crew had resolved to continue negotiations this week with Virgin after some progress was made in the talks on Friday but more needed to be done to reach a resolution.

The TWU said cabin crew had for months been raising concerns that included back-to-back rosters forcing them to skip rest breaks and fight fatigue.

Ground crew recently settled an agreement with more full-time jobs, better hours for part-timers and classification levels reinstated, lifting pay by as much as 20 per cent for the most experienced workers after pandemic settings disbanded seniority levels.

However, Ms Hrdlicka warned staff that they “won’t get a third chance” if costs could not be controlled.

“It is critical that we all stay united in ensuring Virgin Australia is set up for long-term success,” she said. “Our current offer to cabin crew … includes very attractive base salary increases as well as increases to allowances and changes that help address the lifestyle and fatigue issues that have been raised.”

She said she had spent time with Virgin founder Richard Branson in the last two weeks who told her that in 50 years of building businesses worldwide, “not one of the companies that carries the Virgin name today has ever had strike action taken that has harmed guests and the team more broadly”. 

“He has started hundreds of businesses and also seen some of them fail,” she said. “What is clear is that whilst treating each other with respect and fairness is critical, if we cannot keep our costs competitive against low-cost carriers and new entrants, we will not have a sustainable airline for the long term.”