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Virgin Australia. Must have been one helluva Strategy meeting!!!!

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Virgin Australia. Must have been one helluva Strategy meeting!!!!

Old 7th May 2019, 06:07
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Virgin Australia. Must have been one helluva Strategy meeting!!!!

Virgin Australia’s new chief executive Paul Scurrah has restructured his executive team in a move that will see group executive Rob Sharp depart the company this Friday.
The restructure follows a two-day strategy meeting held on the Gold Coast last week, at which Mr Scurrah discussed new ideas for success with his most senior managers.
Today The Australian has learned Mr Scurrah has created the positions of Chief Commercial Officer (CCO) and Chief Operations Officer (COO) within the Virgin Australia (VAH) business, in the place of Mr Sharp’s role.
While a global recruitment process is conducted, Tigerair chief executive Merren McArthur will act in the CCO role and director of group flight operations Stuart Aggs will act in the COO role.
Both executives have been with Virgin Australia for a number of years, working in several parts of the business.
Prior to taking on the top job at Tigerair, Ms McArthur led Alliances and Revenue Management and also headed up the Cargo and Charter Services division.
Mr Aggs was previously head of safety and is considered to have the right operational experience for the interim COO role.
Mr Sharp was previously Tigerair’s chief executive before moving into the second-in-charge role under Mr Borghetti.
He was considered a possible contender for the top job but never revealed if he had applied.
It’s understood the changes have been received well internally, six weeks after Mr Scurrah took over from previous CEO John Borghetti.
Last week, Mr Scurrah announced he had renegotiated Virgin Australia’s 737 MAX order with Boeing, deferring deliveries of the first aircraft from this year to 2021, and converting 15 MAX 8 orders, to the larger, more fuel efficient MAX 10s.
He told The Australian he had received an “overwhelmingly positive” welcome to the airline and continued to be excited by the opportunity.
“There is definitely a positivity in the DNA of the people at Virgin which I think really sets us apart from our competition,” Mr Scurrah said.
“There’s a real desire here by all of the people I’ve met for us to succeed and be a powerful player, so that’s very very good to know.”
The Australian
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Old 8th May 2019, 04:40
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Originally Posted by Zhoottoo View Post
Virgin Australia’s new chief executive Paul Scurrah has restructured his executive team in a move that will see group executive Rob Sharp depart the company this Friday.
The restructure follows a two-day strategy meeting held on the Gold Coast last week, at which Mr Scurrah discussed new ideas for success with his most senior managers.
Today The Australian has learned Mr Scurrah has created the positions of Chief Commercial Officer (CCO) and Chief Operations Officer (COO) within the Virgin Australia (VAH) business, in the place of Mr Sharp’s role.
While a global recruitment process is conducted, Tigerair chief executive Merren McArthur will act in the CCO role and director of group flight operations Stuart Aggs will act in the COO role.
Both executives have been with Virgin Australia for a number of years, working in several parts of the business.
Prior to taking on the top job at Tigerair, Ms McArthur led Alliances and Revenue Management and also headed up the Cargo and Charter Services division.
Mr Aggs was previously head of safety and is considered to have the right operational experience for the interim COO role.
Mr Sharp was previously Tigerair’s chief executive before moving into the second-in-charge role under Mr Borghetti.
He was considered a possible contender for the top job but never revealed if he had applied.
It’s understood the changes have been received well internally, six weeks after Mr Scurrah took over from previous CEO John Borghetti.
Last week, Mr Scurrah announced he had renegotiated Virgin Australia’s 737 MAX order with Boeing, deferring deliveries of the first aircraft from this year to 2021, and converting 15 MAX 8 orders, to the larger, more fuel efficient MAX 10s.
He told The Australian he had received an “overwhelmingly positive” welcome to the airline and continued to be excited by the opportunity.
“There is definitely a positivity in the DNA of the people at Virgin which I think really sets us apart from our competition,” Mr Scurrah said.
“There’s a real desire here by all of the people I’ve met for us to succeed and be a powerful player, so that’s very very good to know.”
The Australian
And yet, the VA propensity for disposing of anyone with experience and a track record continues. The other two are lightweights compared to Sharp but it's no surprise, that's the way they roll.
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Old 9th May 2019, 04:07
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Unhappy Wrong Richard................

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Old 9th May 2019, 04:09
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That approach didn't quite work out for that Theranos girl did it?
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Old 15th May 2019, 06:25
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While a global recruitment process is conducted, Tigerair chief executive Merren McArthur will act in the CCO role and director of group flight operations
Whaaaaaaaaat?
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Old 15th May 2019, 06:50
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Billy Blunt departing is a form of progress I guess...and maybe, being in charge of group flight ops, MM will finally get that Fokker 100 line restarted!
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Old 15th May 2019, 09:34
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The Virgin/ Tiger group remind me of a merry-go-round, it slows down a few get off and then a few new riders get on then once again it goes round and round up and down and repeats the whole cycle again never going anywhere!
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Old 15th May 2019, 12:05
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Tiger is just a child that nobody wants. Nobody has any aspiration to see it grow. Nobody gives two shits about seeing it succeed.

The current numbers, and looking at the last decade, are just horrendous. Is that why all the CFOs are walking each year?

They need to make some harsh decisions with this business. If it’s a case of not closing it due to ceding to much market power to Jetstar, well when comparing numbers I think Jetstar left Tiger for dead many years ago.

They cant afford a multi hundred million dollar Tiger writedown. Get rid of it before it reaches this point.




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Old 15th May 2019, 14:26
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The concept of having Tiger as a buffer against Jetstar was a good one, but they needed to invest in it to make it work. In hindsight, they should've kept DJ as the face painting, LCC, and created a wholly new full service carrier. They may have even seen off Jetstar with a strategy like that, but of course, that's pure speculation.
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Old 15th May 2019, 21:17
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MM is NOT acting as director of group flight ops - there has been some selective cutting and pasting.

MM is acting as CCO and the director of group flight ops is acting as COO.

how long for remains to be seen I guess
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Old 16th May 2019, 12:39
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That approach didn't quite work out for that Theranos girl did it?
Listen to the podcast? Fascinating stuff!
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Old 16th May 2019, 20:52
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And yet, the VA propensity for disposing of anyone with experience and a track record continues. The other two are lightweights compared to Sharp but it's no surprise, that's the way they roll.
​​​​​​​
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Old 16th May 2019, 21:38
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Originally Posted by The name is Porter View Post
Listen to the podcast? Fascinating stuff!
The Dropout? Yes very interesting.
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Old 17th May 2019, 05:06
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the route cull is on now too, cap reductions on NZ, pullout from some underperforming WA routes (Geraldton goes in July)
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Old 17th May 2019, 05:22
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Virgin Australia reviews network as it issues profit warning

  • 17 MAY, 2019
  • Virgin Australia is reviewing its network as weakening demand in the domestic market is expected to drive it to an underlying pre-tax loss of at least A$35 million ($24.1 million) for the year to 30 June.

The airline says in a 17 May trading update that it expects underlying profit to be “at least $100 million down on the [2018 financial year] comparative result of A$64.4 million
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Old 17th May 2019, 22:23
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This is problematic for the VA Group. Qantas are set to deliver a good result and VA the opposite - both airlines are underpinned by their domestic businesses. It further justifies the Max 10 deferals due to capital pain. I guess the good part is that at an operating level, the airline remains profitable, and this loss will be on an accounting basis versus cash basis - which matters.

Link to update can be found here.
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Old 18th May 2019, 09:02
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Any airline who couldn't make substantial and sustained profits in the last 3 years is going to be in big trouble over the next 3. Virgin has let the good times go past without filling the financial coffers which may mean tough times ahead.
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Old 18th May 2019, 09:14
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Maybe I am oversimplifying this, but how is it possible that in the domestic market in which Virgin essentially has one main competitor, (The Qantas group that includes Jetstar), how can you not make money and for how much longer will the different owners put up with this..

Maybe it is the lack of competition which is causing them to make such poor strategic decisions?
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Old 18th May 2019, 12:04
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Originally Posted by Ollie Onion View Post
Any airline who couldn't make substantial and sustained profits in the last 3 years is going to be in big trouble over the next 3. Virgin has let the good times go past without filling the financial coffers which may mean tough times ahead.
That's not correct. VA has made great inroads into paying down debt. It used to be over 7x leveraged... That has almost halved. And VA does have $1b in cash and cash equivelents. The good times have allowed VA to both spend and save. It would not be where it is today (as a new airline) if it did not.
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Old 18th May 2019, 14:48
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Originally Posted by 777Nine View Post
Maybe I am oversimplifying this, but how is it possible that in the domestic market in which Virgin essentially has one main competitor, (The Qantas group that includes Jetstar), how can you not make money and for how much longer will the different owners put up with this..

Maybe it is the lack of competition which is causing them to make such poor strategic decisions?
Domestic 737 is not the major problem here.

Its Short Haul International 737, 777 LAX and once again....Tiger. They are bleeding in these markets with rising fuel costs and declines in loads due overcapacity across the ditch and US currency pressures.

QF have reported similar trends with the International business also.
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