I guess that's why the QLD GOV and unions prefer Cyrus!
Final bids lodged for Virgin Australia
Glenda Korporaal
Associate Editor (Business)
@GlendaKorporaal
Robyn Ironside
Aviation Writer
@ironsider
Damon Kitney
Victorian Business Editor
@DamonKitney
Bain Capital plans to give Virgin Australia staff that remain with the business after a major restructuring equity in the business and has committed to fully funding the entitlements of those that will be made redundant if it is named the preferred bidder by the administrator Deloitte next week.
The revelation came as Bain and rival Cyrus Capital lodged final bids for the airline with administrator Vaughan Strawbridge from Deloitte, after news had earlier emerged that Cyrus had struck a deal with the Queensland Investment Corporation to keep Virgin’s headquarters in Brisbane.
The Australian understands the Bain bid will offer an extensive employee share plan to the Virgin staff that remain when the business transitions to private ownership, while it will also provide resources and support programs for those that are let go.
Bain final bid for the airline, bid lodged with administrator Deloitte on Monday, also noted that all existing travel credits, purchased directly and through travel agents, would be honoured.
Mr Strawbridge won federal support for the conditional travel credits plan last month instead of offering those that had purchased tickets with refunds.
The Bain bid also stated there will be no change to Virgin’s frequent flyer program, Velocity, including the current point balances of members and the pricing architecture.
Bain is looking to better align Virgin with the Velocity brand, including having a common phone app and website.
On Monday afternoon Cyrus gave a further commitment to the Australian Federation of Travel Agents to protect an estimated $100m worth of prepaid Virgin Australia tickets bought through member agents.
In a letter to AFTA chair Tom Manwaring, Cyrus senior adviser Jonathan Peachey said “consumer and agent confidence in Virgin Australia was of paramount importance” to the company.
“Cyrus acknowledges the important role that agents play in the travel and tourism industry, and we appreciate the faith that agents have placed in Virgin Australia during recent months,” Mr Peachey said.
“I am pleased to confirm without hesitation that if Cyrus becomes the new owner of Virgin Australia, tickets booked and paid will be honoured so that customers can take their flights with the airline.”
Mr Peachey also promised Cyrus would protect and honour Velocity points held by the loyalty program’s 10 million members.