Qantas loses round two in exec spat with Virgin

Virgin has won round two of its battle with Qantas over the employment of an ex-Jetstar executive.

Qantas CEO Alan Joyce and Virgin Australia CEO Jayne Hrdlicka maintain a friendship despite the bitter rivalry between the airline groups. Picture: Dylan Coker

Qantas has lost round two of its court battle with Virgin Australia over the rival airline’s employment of an ex-Jetstar executive.

Former Jetstar Japan CEO Nick Rohrlach was announced as Virgin’s new Velocity chief in January, with the intention he would begin in the role in May.

But Qantas took legal action in an effort to delay his starting date until September, on the basis Mr Rohrlach had accepted a job in its loyalty program and was given access to commercially sensitive information.

Virgin drew first blood last week when it won the right to have the matter heard in Singapore where Mr Rohrlach is expected to have a better chance of success.

Qantas announced its intention to appeal the ruling but on Friday the New South Wales Supreme Court of Appeal found the original judge David Hammerschlag had ruled correctly.

The case centred on an exclusive jurisdiction clause in Mr Rohrlach’s employment agreement and assignment letter, and whether that was overridden by a Deed Poll he was required to sign.

The clause stated the employment agreement was “governed by the law in force in Singapore” and “the parties agree to submit to the exclusive jurisdiction of the courts of Singapore”.

The Court of Appeal judges, Chief Justice Tom Bathurst, Justice Andrew Bell and Justice Paul Brereton, agreed with Justice Hammerschlag that the Deed Poll was “not a stand-alone instrument”.

“It is one of a coherent and congruently operating suite of three agreements,” said the ruling.

The judges dismissed the appeal and ordered Qantas to pay Virgin Australia’s costs.

In response to the judgment a Qantas spokesman said “it made no sense to hear the case in Singapore given all parties were in New South Wales, and Mr Rohrlach’s new job was in Sydney”.

“Wherever the case is heard we will defend it strenuously,” the spokesman said.

“It beggars belief that we should even have to pursue legal action to get Virgin and Mr Rohrlach to honour a contract that clearly includes a (six month) non-compete clause.

“Mr Rohrlach had accepted a senior role at Qantas Loyalty and was briefed on highly sensitive and confidential information in preparation for that role, then turned around a few weeks later to accept a job with a direct competitor.”

A Virgin Australia spokesman said they were pleased with the decision and “would now prepare for the final hearing on the matter in Singapore shortly”.