Virgin reveals board changes as Bain pursues IPO plans in hope of quick market recovery

Virgin Australia’s owner is pushing ahead with its plans to relist the airline on the ASX, even as the sharemarkets endure a bloodbath.

Virgin Australia’s US owner Bain Capital has beefed up the airline’s board as it continues preparations for a June IPO, despite growing concern about the timing.

Former Macquarie Group chairman Peter Warne, professional company director Pippa Downes and Bain Capital partner Charles Lawson have been appointed as non-executive directors, along with Qatar Airways’ chief cargo officer Mark Drusch.

It’s expected Mr Warne will become the independent chairman ahead of a return to the ASX, replacing Bain Capital’s Ryan Cotton.

Mike Murphy, Barnaby Lyons and Ray Hass from Bain Capital also sit on the board, along with Warwick Negus who represents the Virgin Group.

The changes follow the retirement of former CEO and board member Jayne Hrdlicka, and the sale of a 25 per cent stake in Virgin to Qatar Airways.

Ms Hrdlicka’s replacement Dave Emerson is expected to join the board at a later date.

Mr Warne and Ms Downes were previously announced as board appointees in 2023, when Bain Capital was first making preparations to launch an IPO.

Ex Macquarie Group chairman Peter Warne is poised to become the next Virgin Australia chair. Picture: John Feder

However, market volatility and personnel changes derailed the plans, which remained on ice throughout 2024 as Virgin finalised its deal with Qatar.

It’s unclear whether current market turbulence will again force Bain to postpone a relisting.

Company insiders suggested a final decision on a June listing would not need to be made for another month, during which it was hoped the market would show signs of recovery.

One of the selling points of the IPO has been the strength of Qantas shares, which had climbed 65 per cent in a year, only to plunge 11 per cent in the last week.

On Monday, Qantas shares briefly slipped below $8 for the first time in almost six months, before rallying to $8.06, down 4 per cent for the day.

Bain is also relying on Virgin Australia’s profitability, after recording $439m in earnings before interest and tax for the six months to December 2024, and solid domestic market share which remains at around a third of all travellers.

The private equity firm was expected to draw comfort in the ongoing demand for travel, with Sydney and Melbourne Airports preparing for thumping Easter crowds in domestic and international terminals, and Roy Morgan research showing continued enthusiasm for travelling.

Data derived from more than 60,000 interviews suggested 23 per cent of Australians planned to travel overseas in the next 12 months, up from 16 per cent in October 2022 when Covid restrictions started lifting.

Another 57 per cent intended to travel within Australia, up from 52 per cent a year ago.

Roy Morgan head of tourism and travel Adele Labine-Romain said the figures confirmed Australians “enduring passion for travel”.

“While economic factors and confidence levels have certainly been influencing travel decisions for some, the desire to explore remains strong showing a promising future for travel,” Ms Labine-Romain said.

Originally published as Virgin reveals board changes as Bain pursues IPO plans in hope of quick market recovery