Virgin works agency’s angles

Virgin Australia may have been in talks with Flight Centre about taking space at the travel agency’s Brisbane headquarters.

Virgin Australia may have been in talks with Flight Centre about taking space at the travel agency’s Brisbane headquarters following a large round of COVID-19-related job cuts, but the thinking is that the negotiations could extend beyond office floors.

There is a line of thought that one of the conditions for Virgin to taking floors off the hands of Flight Centre at the 15-storey building at South Bank could involve more favourable commission rates to the airline compared with those offered for Qantas.

Only those around the negotiating table will know exactly what is up for discussion, but many believe that such a deal could make sense for Virgin Australia, as it emerges from voluntary administration with new owner Bain Capital.

No doubt Bain Capital has plenty of changes it is keen to make and the location of the headquarters for the Brisbane-based airline could surely be one of them.

Office market discussions between various landlords and tenants are telling right now.

Reports suggest that Charter Hall has also been negotiating to keep Virgin at its Bowen Hills building at 56 Edmondstone Road.

At the same time, it is believed the David Harrison-run property investor is making an interesting move itself, taking up vacant floors in Sydney’s iconic Chifley Tower, which it partially owns.

It begs the question what its plans will be at its current headquarters at Sydney’s 1 Martin Place.