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Virgin 3.0

Old 15th Oct 2020, 11:51
  #461 (permalink)  
 
Join Date: Jul 2007
Location: BAO
Posts: 1
Originally Posted by ratpoison View Post
Below is this arvo's write up in the Courier Mail.

Union brawler: Virgin’s new female boss unmasked

.......
Mr Kaine said the removal of CEO Paul Scurrah reflected “slippery private equity doing backroom deals that are not in the public interest”.”It’s time for them to come clean … build trust with their workforce,” he said of Bain.
He said Mr Scurrah was a tough CEO who “when he gave his word, he’d stand by it”.

By contrast, Mr Kaine said workers had been left “unnerved and alarmed” by the appointment of Ms Hrdlicka, who quit her $3 million role with New Zealand’s a2 Milk late last year.
“In the last 25 hours the world at Virgin has been turned upside down,” he said. “The TWU’s focus has been on holding Bain Capital to account over the commitments it signed up to before Virgin workers as creditors voted to approve the sale of the airline.”
Hmmmm (probably shouldn't, but anyhoo)-

So Michael (Kaine)- 'you' via the TWU were 'Sanctified' as the Prime/Lead Union (ref: the Fed Court- paid for by the Administration) along time ago, on this Gig and fought for 'that' to be so- 'their' lives your hands Comrade/Brother, what have YOU got/delivered!!!!

Then, therefore- given the engagement and Indulgence you have had/enjoyed via the process- 'what' did YOU do/achieve (the vote having been delivered, 4 Sept)- as toward the representation/security of the 'said' Membership...... or, is 'this' all NOW rather surprising.......!!!!, for you ?????

Just, 'a' question is all....... Michael.
be well/rgds all
S28- BE
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Old 15th Oct 2020, 12:13
  #462 (permalink)  
 
Join Date: Apr 2011
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Originally Posted by Paragraph377 View Post
I will correct that - she worked very closely with and had very close ties with several BCG names such as ‘Boston Bruce’, aka Bruce Buchanan. Same circle, same methodology - rip, strip, carve off, saddle with debt and then extract tens of millions of dollars to ‘help their own company’ get out of the mire. It’s textbook Wall Street greed. Earn a nice executive pay for a couple of years then move on to the next victim. Her trail of destruction at a2 and JQ won’t be forgotten in a hurry. They may have blindsided Scurrah but he was toast the day that VA was put into Administration. It was only a matter of the timing of his execution. And now everybody knows. She loves power, loves to crush those beneath her and will absolutely enjoy taking on the Unions again. Yes, the same Unions writing letters to a Liberal Prime Minister who hates Unions. Yeah, that’s going to work......
What about Stewie. Do you think he will stay on.
Everyone else is just about gone or soon to be....
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Old 15th Oct 2020, 12:14
  #463 (permalink)  
 
Join Date: May 2020
Location: Village
Posts: 31
Lets be honest, it can't get any worse than it is now. 2x failed resource planning systems for crew (costing $50m+), endless junkets (those monthly trips to Italy for project Chambersberg) and now this....time to wipe the skiddies off and do a proper flush out.
No more, jobs for John's boys, no more do it becuase John said, no more oh but xxx's been here since VB days.... finally an opportunity to properly clear the decks and priortise and needs to be.

Kinda ironic now any CCON needs Public Affairs to approve....
didrechambers77 is offline  
Old 15th Oct 2020, 14:18
  #464 (permalink)  
 
Join Date: Feb 2018
Location: Hyperspace
Posts: 90
JH will clear house.

Look out for an influx of ex JQ cronies, yes people should only apply.

As for VARA... given how much she hated JQ A320’s dong FIFO, I’d say its gone.
Arthur D is offline  
Old 15th Oct 2020, 14:21
  #465 (permalink)  
 
Join Date: Aug 2004
Location: Melbourne, Australia
Posts: 8,428
I recommend the Sheryl Crow version.


Just replace “Mississippi” with “Virgin Airlines”

Every step of the way
We walk the line
Your days are numbered
So are mine
Time is piling up
We struggle and we scrape
All boxed in
Nowhere to escape
The city's just a jungle
More games to play
I'm trapped in the heart of it
Trying to get away

I was raised in the country
Been working in the town
I been in trouble since I
Set my suitcase down
I ain't got nothing for you
I had nothing before
Don't even have anything
For myself anymore
Sky's full of fire
And the rain is pouring down
There's nothing you can sell me
So I'll see you around
All my powers of expression
And thoughts so sublime
Could never do you justice
Reason or rhyme

There's only one thing that I did wrong
I stayed in Mississippi a day too long

The devil's in the alley
The mule kickin' in the stall
Say anything
Say anything you want to
I've heard it all
I was thinking about the things that she said
I was dreaming I was sleeping in you bed
Walking through the leaves
Falling from the trees
Feel like a stranger nobody sees
So many things we never will undo
I know you're sorry, well I'm sorry too
Some people will offer you their hand and some won't
Last night I knew you, tonight I don't
I need something strong to distract my mind
I'm gonna look at you till my eyes go blind
Well I got here, following the southern star
I crossed that river just to be where you are

There's only one thing that I did wrong
I stayed in Mississippi a day too long

Well my ship's been split to splinters
I's sinking fast
I'm drowning in the poison
Got no future
Got no past
But my heart is not weary, it's light and it's free
I've got nothing but affection for those who've sailed with me
Everybody's moving if they ain't already there
Everybody's got to move somewhere
Well stick with me baby anyhow
Things should start to get interesting right about now
My clothes are wet
Tight on my skin
Not as tight as the corner that I painted myself in
I know that fortune is waiting to be kind
So give me your hand and say you'll be mine
The emptiness is endless
Cold as clay
You can always come back
But you can't come back all the way

Well there's only one thing that I did wrong
I stayed in Mississippi a day too long

Yeah the only thing that I did wrong
Was stayed in Mississippi a day too long
The only thing that I did wrong
Was stayed in Mississippi a day too long
Sunfish is offline  
Old 15th Oct 2020, 14:44
  #466 (permalink)  
 
Join Date: May 2016
Location: Sunshine Coast
Posts: 270
Originally Posted by Paragraph377 View Post
I will correct that - she worked very closely with and had very close ties with several BCG names such as ‘Boston Bruce’, aka Bruce Buchanan.
Bruce Buchanan was hardly a 'BCG name'; he worked for them for less than six years and never advanced beyond Principal. And for Bruce Buchanan's entire tenure at BCG, Jayne was working for Bain & Company consulting. They were essentially direct competitors.

Originally Posted by Paragraph377 View Post
Same circle, same methodology - rip, strip, carve off, saddle with debt and then extract tens of millions of dollars to ‘help their own company’ get out of the mire. It’s textbook Wall Street greed.
Same circle, same methodology as who exactly? BCG is a consulting firm (the clue is right there on the tin - Boston Consulting Group). BCG is not a private equity company and unlike Bain BCG doesn't have a PE Capital arm (the closest that BCG comes to capital investments is BCG Digital Ventures, a tech-focused venture capital outfit).

MickG0105 is offline  
Old 15th Oct 2020, 14:46
  #467 (permalink)  
 
Join Date: Aug 2004
Location: Melbourne, Australia
Posts: 8,428
Stevieboy and snoozer. I didn’t make any moral judgement about standing up to injustice or championing safety above all else. Doing either in my personal experience will just get you fired at a convenient time for management. So yes, pussification is the way to stay there.

All I can suggest is “the sleep test”. Will you sleep better or worse telling management to take a running jump and leaving with your self respect intact but with a shredded bank balance, lying awake every night wondering how to make the next mortgage payment, or biting your tongue and sacrificing principles for three or four years to keep food on the table and a roof over your head?

‘’I don’t envy you. I’ve had to do that myself and being young, I elected to stand on my principles, but I was also lucky, but that is another story...

‘’All I can say is that if you are young it won’t matter, you will overcome all this crap.

‘’To those who comment on my situation, I’d gladly swap my entire assets in exchange for ten pain free years of your young life, however Faust is out of fashion and the devil is too busy elsewhere.
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Old 15th Oct 2020, 20:54
  #468 (permalink)  
 
Join Date: Apr 2020
Location: Chester
Posts: 11
finally an opportunity to properly clear the decks and priortise and needs to be
Be very careful what you wish for - Like Bruce Loose Cannon before her, Carla wreaked havoc at Jetstar, and soon the same will occur at Virgin, but this will be on a much grander scale now she's working for Bain.

Private Equity at its best - VA will be glossed up, stripped and floated. The gullible public will crawl over themselves to get a slice of the IPO , mistakenly thinking this is a gold mine. Bain will make a fortune with "management fees" and the proceeds from the eventual but certain sale. Then exit left and on to the next "project".

Cynical, I know - but true
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Old 15th Oct 2020, 21:59
  #469 (permalink)  
 
Join Date: Aug 2007
Location: Australia
Age: 78
Posts: 218
So much guessing and postulating about VA's future.
The only ones who know are Bain's Directors and their silence is deafening.
It's high time they did the right thing and inform staff and the travelling Public of what they really intend for VA to be like.
It's the least they could do but do they really give a stuff what we think or how we feel.
Methinks not!!
RodH is offline  
Old 15th Oct 2020, 22:32
  #470 (permalink)  
 
Join Date: Aug 2004
Location: Melbourne, Australia
Posts: 8,428
RodH:
It's high time they did the right thing and inform staff and the travelling Public of what they really intend for VA to be like.
It's the least they could do but do they really give a stuff what we think or how we feel.
Methinks not!!
There is not a hope in hell that Bain will level with anyone, including the Federal and State Governments. Their strategy is simple; extract every last cent from Australia! That includes the staff, the travelling public, potential new shareholders and the taxpayer.

‘’For example, it is already clear that they are going to blackmail government over regional air service subsidies. The service levels for pax will also be atrocious but one cent cheaper than Qantas. By the time Bain execute their exit, the whole country will be heartily sick of them.
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Old 15th Oct 2020, 22:45
  #471 (permalink)  
 
Join Date: Jun 2008
Location: Kichin
Posts: 526
Originally Posted by Sunfish View Post
There is not a hope in hell that Bain will level with anyone, including the Federal and State Governments. Their strategy is simple; extract every last cent from Australia! That includes the staff, the travelling public, potential new shareholders and the taxpayer.
But you still think we should roll over and protect our jobs? Which is it? Roll over and hand Bain the win they’re after, or show a bit of backbone and remind these people these that this is not the US?
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Old 15th Oct 2020, 23:05
  #472 (permalink)  
 
Join Date: Aug 2004
Location: Melbourne, Australia
Posts: 8,428
Gordon, the Federal Government can’t “show a bit of backbone” without risking two things; The first is a decrease in offshore investment capital inflows from the U.S. and the second is an increase in interest rates on Australian sovereign debt on Wall street which funds our deficit. Either would be disastrous for our economy.

Bain is part of the Wall street mafia and they are known to punish governments who try and get too smart or stroppy with members. Frydenberg and Treasury know that and it’s been done before to keep countries in line. Bain doesn’t even have to make the threat. The Feds will give them everything they want. Better governments than ours have tried to dictate to wall street with predictable bad results.

If the government arced up at Bain, all you would see in the Wall Street Journal is a little article headlined something like “ Bain Capital Australian Airline investment doesn’t take off” with a few words about the “bad attitude” of the Federal Government and how miffed Bain is. Two weeks later Bloomberg reports that the Oz 2 year bond has gone from 0.13% yield to 0.29% - in effect doubling our funding costs. Maybe a downgrade by Fitch as well. That is all you would see. The foreign investment review board would see the withdrawal of proposed U.S. bids on Australian assets, but you wouldn’t see that because that stuff is confidential. The result here would be an immediate increase in home mortgage rates and you know what that would do.

All I’ve said is it’s a matter of a difficult personal choice to try to stay or leave Virgin. I think I’ve accurately catalogued what you need to do if you want to stay.

Last edited by Sunfish; 15th Oct 2020 at 23:24.
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Old 15th Oct 2020, 23:12
  #473 (permalink)  
 
Join Date: Jul 2008
Location: Australia
Posts: 454
To be fair to sunfish he has been consistent in saying that the best option is to leave and find employment somewhere else. The problem is, at least for the pilots, there are no other jobs. So the Sophie's choice is voluntarily become unemployed or stay and work harder for less.
Lookleft is offline  
Old 15th Oct 2020, 23:47
  #474 (permalink)  
 
Join Date: Dec 2006
Location: australia
Posts: 746
I sometimes think there's a point being missed here: empires come and go, things change.

The days of having a "connection" with your company are dying if not deceased, deregulation and new starts who could do things cheaper from scratch and being run purely for the "bottom line" have seen to that.

You can have personal satisfaction in doing your job as well as you can, doing it "for the company" unfortunately an outdated concept in many/most companies.

The pilot market has changed, even 6-9 months ago the market lacked numbers (that should always have been stated as experience) but that has changed and will be so for years to come, plenty of experienced pilots who will apply for YOUR job if you don't want it.
Anyone recruiting will only pay what the market demands, REX if correctly quoted said they'd look at Jetstar-10% which would be similar to the numbers proposed by Bain/V3.0 - because that's what the market will bear, that's the reality.

Collectively negotiate the best deal you can, beware Bain/V3.0 will look to divide and conquer and NEVER let them engineer a situation where they can advertise YOUR position because you have (clearly according to them!) indicated that you no longer want it and they have a business to run, passengers to serve etc etc.

Of course all just IMHO looking from the outside and seeing what is and discounting what should be. Best of luck.

galdian is offline  
Old 15th Oct 2020, 23:54
  #475 (permalink)  
 
Join Date: Aug 2004
Location: Wherever the job takes me...
Posts: 321
https://www.afr.com/rear-window/bain...0201015-p565js

BAIN INSTALLS HRDLICKA AT VIRGIN, HAVING PROMISED NOT TO

From today's AFR, by Joe Aston...
Back in June, one commentator described Virgin Australia’s sale to Bain Capital as “an apparent masterclass in insolvency administration”.

It is now apparent that Bain Capital chief executive Mike Murphy has delivered a masterclass in misdirection.

Bain alumna Jayne Hrdlicka brought the Virgin deal to Murphy in April. She was given serious carry in the deal alongside Bain. It was Murphy’s plan from the get-go to eliminate Virgin’s incumbent management and install a Bain robot.

And yet Murphy carried on the charade for months, claiming to back CEO Paul Scurrah and describing as “unfounded” talk that Hrdlicka would be imposed on the post-administration business. Murphy was canny enough to discern the true Jayne-Bain proposal was completely unpalatable to the Morrison government and to Virgin’s unions. It would’ve been stone dead in 24 hours.

Union misgivings

Indeed, during the open bidding contest between consortia, major unions expressed their misgivings about the prospect of Hrdlicka helming a Bain-owned Virgin. And in a meeting of union secretaries with administrator Vaughan Strawbridge and Murphy, those unions received an assurance that Hrdlicka would not be chief executive. It is obvious that assurance was falsely offered.

Then, having achieved preferred bidder status by egregious deception and having struck their deal with Strawbridge, Murphy implored Virgin Australia employees to vote for Bain’s deed of company arrangement at the second meeting of creditors on September 4.

“Virgin has a great management team run by Paul Scurrah and I’d like to again reaffirm that we are backing Paul to successfully lead Virgin through the current turbulence and back into the skies,” he told them. “Paul has also said he intends to vote in favour of the DOCA… Voting in support of Bain Capital’s DOCA is the best way to continue in our recovery”. So 99 per cent of them did.

Murphy dispensed with Scurrah’s services on Thursday and – shock, horror! – appointed Hrdlicka. Scurrah should curse his naivety. Only a fortnight ago, he told Australian Aviation “it’s going really well” and likened his relationship with Bain to “a really good marriage”. No, he’s been a dead man walking since June 26.

Is it any wonder people hate private equity?

Oblivious to the damage

Bain is seemingly oblivious to the damage this massive con will wreak on the already piss-poor reputation of PE in the Australian community. Theirs has been a tortuous decade in purgatory since Ben Gray dumped a booby-trapped Myer onto the public market. For how many years will this shameful betrayal reverberate?

Virgin’s 6000 remaining employees will now quite reasonably comprehend they’ve been annexed by a pack of scumbags whose undertakings are worthless. Hrdlicka will run Virgin as she did Jetstar and the a2 Milk Company: without an ounce of human feeling.

In New Zealand she even managed to get the cows offside. We can scarcely conjure a prominent Australian businessperson less suited to the warm culture of an organisation like Virgin Australia.

Besides Murphy himself, perhaps. He was famously an Olympic diver so we can only hope someone drains the pool before his next morning springboard.
The Bunglerat is offline  
Old 16th Oct 2020, 00:35
  #476 (permalink)  
 
Join Date: Oct 2016
Location: MCG
Posts: 139
A captain applying for his/her next airline job with 15000 hours with multiple Boeing/Airbus endorsements was asked in the interview.
"Why were you sacked from your last job."
I broke a major sop by opening my packet of peanuts the wrong way.

Turnleft080 is offline  
Old 16th Oct 2020, 00:43
  #477 (permalink)  
 
Join Date: Aug 2004
Location: Melbourne, Australia
Posts: 8,428
Bunglerat, it gives me no pleasure to say I did warn you. I reiterate, do not put yourself between Bain and a pile of money, they will trample you in a second.
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Old 16th Oct 2020, 00:59
  #478 (permalink)  
 
Join Date: Nov 2014
Location: Timbuktoo
Posts: 98
You can’t help but wonder if not choosing Indigo Partners was a mistake. VA would most likely have still been transformed to an LCC but at least they have a long history of running airlines, not just coming in, taking the cash and running.
brokenagain is online now  
Old 16th Oct 2020, 01:09
  #479 (permalink)  
 
Join Date: Feb 2002
Location: NSW
Posts: 8
Originally Posted by TCAS v2 View Post
Be very careful what you wish for - Like Bruce Loose Cannon before her, Carla wreaked havoc at Jetstar, and soon the same will occur at Virgin, but this will be on a much grander scale now she's working for Bain.

Private Equity at its best - VA will be glossed up, stripped and floated. The gullible public will crawl over themselves to get a slice of the IPO , mistakenly thinking this is a gold mine. Bain will make a fortune with "management fees" and the proceeds from the eventual but certain sale. Then exit left and on to the next "project".

Cynical, I know - but true

Don't forget sneaky Richard B. will be a winner with his royalties from the Virgin brand...
TBM-Legend is offline  
Old 16th Oct 2020, 01:11
  #480 (permalink)  
 
Join Date: Jul 2007
Location: BAO
Posts: 1
ex the AFR: Virgin's epic fight with unions.......

The AFR having another crack- via Tony Boyd/the Chanticleer column, this time: https://www.afr.com/chanticleer/virg...0201015-p565e0

rgds
S28- BE

an Extract:

- Chanticleer
Virgin's epic fight with unions

Oct 16, 2020 – 12.00am

Virgin Australia was always going to have to do a deal with its unions. This task has been made more difficult because of the way it handled the exit of Paul Scurrah as CEO.

Jayne Hrdlicka's appointment as chief executive of Virgin Australia to replace Paul Scurrah sets up an epic fight with the aviation unions as Bain Capital moves to make the airline profitable for the first time in eight years.

Virgin won't make money unless it cuts costs no matter what happens with the pace of recovery in the aviation industry in the wake of the COVID-19 pandemic. The prospects for recovery look good, but more on that later.


Bain Capital has made Jayne Hrdlicka chief executive of Virgin Australia, replacing Paul Scurrah. David Rowe

Hrdlicka earned a reputation for being tough on unions at Qantas, where she worked closely with chief executive Alan Joyce when the airline grounded its entire fleet in October 2011.

Her approach to industrial relations is at the opposite end of the spectrum to former Virgin chief executive John Borghetti, who rolled over to union demands to avoid conflict. This burdened the airline with an unsustainable business model.

It is worth remembering the financial performance of Virgin in the eight years before it hit the wall, with excessive debt and the inability to raise capital from its shareholders or the broader market.

It recorded the following losses: $72.8 million in 2013, $211.7 million (2014), $49 million (2015), $260 million (2016), $220 million (2017), $680 million (2018) and $349 million (2019).

There were a number of things seriously wrong with Virgin's strategy and its execution of that strategy. Two of the most important of these mistakes were the blowout in costs and the increase in debt.

Bain Capital under local partner Mike Murphy bought Virgin to make a profit. But his management of the CEO succession planning from Scurrah to Hrdlicka has enraged the Transport Workers Union.

This [could] go down as one of the biggest corporate swindles in Australia's history.
— Michael Kaine, TWU president

TWU president Michael Kaine says the union trusted Scurrah because when he said something he could be trusted to honour that. Kaine has no confidence that Hrdlicka will do the same.

But Kaine does not help his case by railing against the fact that Bain bought the business to make money. He appears to have forgotten that the only way people in the aviation industry in Australia get to keep their jobs is if the companies running it make profits.

Kaine launched into his anti-profit rant on Thursday after calling on Prime Minister Scott Morrison to force Bain to stand by commitments made in August.

"The justifiable reason for the government to get involved in Virgin has been absolutely made out over the last 24 hours," he said.

"What we see is the profit objectives. The principle profit objectives of private equity will reign supreme. That's not good for the Australian economy."

Kaine reckons Bain double-crossed the unions by promising to launch a full-service airline in competition with Qantas then reneging on that promise.

"This [could] go down as one of the biggest corporate swindles in Australia's history,'' he said. "And we can't afford to do that with what is critical to Australia's future, which is a vital second airline."

Bain's 'hybrid' model

Bain released a letter which was sent to the unions, and this reaffirms previous statements that the new owner's strategy aims to secure 6000 jobs and invest in technology.

"So far we have invested $3.5 billion into Australia through our acquisition of Virgin Australia," it says.

The letter also says Virgin will not be repositioned as a low-cost carrier.

"Virgin Australia will be a 'hybrid' airline offering great value to customers by delivering a distinctive Virgin Australia experience at competitive prices," the letter says.

"We all believe this will appeal to the full spectrum of travellers, from premium corporate through to more budget-focused customers."

But Murphy, Hrdlicka and Kaine know that this vision will not be realised unless there are significant cuts to costs.

The stage is set for a bitter fight over enterprise bargaining agreements that seek to cut the salaries of pilots and cabin crew by 20 per cent to 30 per cent. Bain will hold the upper hand because there is no alternative for the TWU and its members. The airline will not be able to compete with Qantas and Jetstar if it does not cut its wages bill.

Positive signs for the sector include the Qantas flight to nowhere being sold out in 10 minutes, the surge in flyers following the reopening of the South Australian border, and the possibility of the Queensland border opening on November 1 – straight after the state's election.

Tony Boyd is the Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at [email protected]
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