Virgin Australia not banking on Richard Branson visit to impress potential investors in IPO

After a four-year hiatus, Richard Branson is set to return down under later this year in a visit that could coincide with Virgin Australia’s IPO.

Virgin co-founder Richard Branson has scheduled a trip to Australia later this year, his first in four years, but the airline that bears his brand is adamant the visit has nothing to do with a ­planned public float.

A Virgin Australia spokeswoman suggested the British billionaire’s visit had more to do with cruise company Virgin Voyages, and said there was no plan to use Branson’s high profile to woo investors.

Virgin Australia’s owner, US private equity firm Bain Capital, is believed to be targeting November for an initial public offering (IPO) expected to raise about $1bn.

The airline’s chairman Ryan Cotton told employees in May that planning was “well advanced” and they would return Virgin Australia to the ASX when the time was right.

Recent comments by CEO Jayne Hrdlicka echoed Mr Cotton, indicating they were in no rush and the focus remained on rebuilding the airline following its near collapse in April 2020.

The subsequent administration and sale to Bain Capital saw Branson’s stake in Virgin Australia slashed from 10 to 5 per cent, to the dismay of the Virgin Group.

There was even speculation the new owners might ditch the expensive Virgin trademark and rename the airline but ultimately the value of global brand recognition won out.

Richard Branson greets commuters on a Sydney Ferry in late 2019 to promote cruise line Virgin Voyages. Picture: Toby Zerna

What has been absent since Bain took over and installed Ms Hrdlicka as CEO is the Branson factor, with the entrepreneur previously making annual visits to Australia to engage in high-profile publicity stunts for the airline.

In 2018 Branson hosted Virgin Australia’s first meditation flight, tossing hot towels to passengers and leading a yoga class.

The following year he emerged from a Brisbane Airport baggage carousel as part of a “giant sushi train” to promote the airline’s upcoming flights to Tokyo.

When the pandemic struck, the flights were put on hold and Virgin Australia was placed into voluntary administration, emerging six months later with new owners.

It took another two and a half years for Virgin Australia to get its Tokyo flights off the ground, but this time Branson was nowhere to be seen.

Inquiries to the Virgin Group revealed Branson had simply been too busy launching Virgin hotels in Edinburgh and New York, and new sailings for Virgin Voyages.

His four-year absence is set to end later in the year, however, the first time his schedule makes it possible.

As well as a stake in Virgin Australia, the 72-year-old co-owns Makepeace Island off Noosa in Queensland with former Virgin Blue founding partner Brett Godfrey.

Once a private retreat for the owners and their families, the island resort is now available for hire from $15,000 a night for up to eight guests.