Unions back Cyrus over Bain in bid for Virgin Australia

Two unions have pledged their support for one of the final two bidders vying to rebuild Virgin Australia.

Virgin Australia aircraft parked at Brisbane Airport. Picture: Patrick Hamilton/AFP

Two key unions have pledged their support for Cyrus over Bain in the Virgin Australia administration process, saying the company is the “best fit” for the airline.

The Australian Licensed Aircraft Engineers Association and Flight Attendants Association of Australia have spoken out, days before final binding bids are due.

ALAEA secretary Steve Purvinas said the Cyrus team seemed to have a far deeper appreciation for the Virgin brand.

“I feel it would be better for all of our members if Cyrus was successful come the next cut by the administrator,” Mr Purvinas said. “I think Virgin will be best placed to succeed with Cyrus once they put in place their plans.”

FAAA secretary Teri O’Toole said she thought it was important to make their preference known so the right decision was made at the end of the month.

“They’ve just got really good brand values,” Ms O’Toole said.

“They’re the right fit, they’ve got experience with the Virgin brand and when Cyrus talk about the airline, and their plan for it, it’s with genuine commitment.”

She said Cyrus was very familiar with (brand co-founder) Richard Branson’s approach to the airline of “employees first, customers second and shareholders third”.

“Cyrus are putting the reputation on the line for this, they’re not dipping their toes in it,” said Ms O’Toole.

“They’re committed. You can tell that when they speak about the airline.”

Other unions, including the Australian Federation of Air Pilots declined to commit to one bidder over the other at this stage in the process.

Once final offers are lodged with administrator Deloitte, a decision on the winning bid is expected by June 30.

The creditors meeting scheduled for August 21 could derail the administrator’s choice, if a majority votes against it.

In the case where creditors who are owed the most money disagree with the creditors who have the largest numbers, Deloitte can use a casting vote to force a decision.

Cyrus has been described by those close to the administration process as more union-friendly, and preferring the vision of existing management for a Virgin Australia 2.

However, the US firm is still seeking partners to get its bid over the line, and is hopeful of federal government assistance to help relaunch the carrier.

On the other hand, Bain has plans for a smaller, leaner and tech-savvy airline initially with a tight domestic network and one aircraft-type fleet.

The private equity firm has produced a detailed business recovery plan for the carrier and has the financial means to rebuild Virgin Australia without outside help.

Both bidders have indicated they would continue the Virgin brand, but were unlikely to reinstate low-cost carrier Tigerair.