Qantas muzzles the man who knows too much

Qantas has scored a well-timed court victory in its battle to delay the employment of a former executive by Virgin Australia.

Qantas CEO Alan Joyce and Virgin Australia CEO Jayne Hrdlicka maintain a personal friendship despite their companies’ bitter rivalry. Picture: Dylan Coker/NCA NewsWire

Qantas has scored a well-timed victory in its battle to delay the employment of a former executive by rival Virgin Australia.

Former Jetstar Japan CEO Nick Rohrlach was due to start work as the head of Virgin’s loyalty program Velocity on Monday May 3, after leaving Qantas in December.

But Qantas has fought to postpone the appointment for another four months based on the non-compete clause in Mr Rohrlach’s employment contract.

The move stems from concern that Mr Rohrlach was given access to sensitive commercial information about Qantas Loyalty, in preparation for a senior position there.

In a critical win, Qantas was granted an injunction by the High Court of Singapore on Thursday, temporarily restraining Mr Rohrlach from starting at Virgin Australia.

The injunction means Mr Rohrlach will remain on “gardening leave” until the matter can be heard in court, which may not occur for several months.

Qantas CEO Alan Joyce. Picture: NCA NewsWire/Bianca De Marchi

Qantas was understood to be pleased with the decision of the court in Singapore, after unsuccessfully seeking to have the matter heard in Australia.

A directions hearing ahead of the substantive proceedings was set down for May 22 with the trial not expected until June or July.

A statement from Virgin Australia said the substantive proceedings were seeking declarations that the restraint provisions were “void and unenforceable because they unreasonably stopped Mr Rohrlach working for any competitors of Qantas”.

“Virgin Australia categorically denies allegations that it has been anything but proper and appropriate in Mr Rohrlach’s recruitment and we are confident our position will be vindicated in court,” the statement said.

“We look forward to welcoming Mr Rohrlach to the Virgin Australia family with open arms and showing him why we are Australia’s most loved airline with a winning team that attracts the very best.”

The position of Velocity CEO has been vacant since January 2020, following the departure of Karl Schuster.

Considered one of the most successful parts of the Virgin Australia business, the Velocity program has more than 10 million members.

Qantas Frequent Flyers boasts even more members, at in excess of 13 million, and Qantas was not happy with Mr Rohrlach’s decision to jump ship after apparently accepting a role in Loyalty.

“It is an inglorious sequence of events, to formally accept a new job and as part of the preparation for it receive highly sensitive and confidential information, then turn around just few weeks later and take a job where that information would give you a real advantage,” said a Qantas spokeswoman.