Paul Scurrah slams Qantas boss Alan Joyce’s ‘don’t nationalise Virgin’ comments

Coronavirus crisis not a ‘game of Survivor’ Virgin CEO tells Qantas boss.

Virgin Australia CEO Paul Scurrah and Qantas CEO Alan Joyce. Picture: AAP

Virgin Australia’s CEO has warned his Qantas counterpart not to treat the current coronavirus crisis crippling the airline industry as a “game of Survivor”.

Paul Scurrah was speaking after Alan Joyce told Sky News, it would be completely unfair for the federal government to nationalise Virgin Australia to see it through the coronavirus crisis.

In a blatant swipe to his smaller, loss-making rival, Mr Joyce said the government should not have to look after companies that had been badly managed for the past 10 years.

Mr Scurrah admitted he was taken aback by the remarks in the current climate, with both airlines being forced to axe most of their capacity in response to withering demand.

“We all need to remember we’re in a national crisis at the moment and now is not the time for rivalry, for these unhelpful comments,” Mr Scurrah said.

“This is not a game of Survivor. It’s a global pandemic creating unprecedented challenges that require unprecedented decisions.”

He said the role he saw Virgin Australia playing in its talks with government this week was one of industry advocate.

“We should see people joining arms and pulling each other through this. We see that as the Australian way and that’s what we’re doing,” said Mr Scurrah.

Survivor All Stars host Jonathan LaPaglia. Supplied by Channel 10

On Thursday, Mr Joyce announced two thirds of Qantas’s workforce would be stood down until the end of May, and perhaps longer, and 150 aircraft grounded.

He described the impact of the coronavirus on the aviation industry as “survival of the fittest” and suggested Qantas would be “the last man standing”.

Virgin Australia is also facing large scale upheaval within its operation after suspending international flights and halving domestic services.

Mr Scurrah said it was important for Australia and the region to have a healthy aviation industry “on the other side of this challenge”.

“We’re all under pressure, it’s a huge responsibility for all of us in the industry to pull whatever levers we can to make sure our companies are as healthy as they can be, and to minimise the impact on our people and on jobs,” he said.

“I have been buoyed by the early support shown by government. I know the government is keen on supporting the sector as a whole and I fully support that.”

He denied having any discussions around nationalising Virgin Australia, which is 90 per cent foreign-owned by major shareholders Etihad Airways, Singapore Airlines, HNA Group, Nanshan and Sir Richard Branson.

“What we wanted to talk to them about was should this be a prolonged crisis, what mechanisms there might be available in different scenarios,” Mr Scurrah said.

“We want to be sure that if we get to certain points, we agree now what those mechanisms might be so that we don’t turn up at the last minute and try to do it under a position of desperation.”

He would not say if Virgin Australia was seeking a government loan similar to that provided by the New Zealand government to Air New Zealand.

“They’re in very different circumstances to the industry over here but there’s many ways our government could help, and is helping with messaging around domestic travel still being okay,” he said.