Borghetti Off To Virgin
 

Ex-Qantas exec firms for Virgin
MATT O'SULLIVAN
March 2, 2010
VIRGIN BLUE'S replacement for its long-time boss, Brett Godfrey, could be announced as early as today, amid mounting speculation that former Qantas executive John Borghetti is the most likely heir apparent.

Several industry insiders said yesterday that Mr Borghetti was expected to become the airline's next chief executive, though they did not rule out Andy Harrison, the boss of British no-frills airline easyJet, as an outside chance for the top job.

Mr Harrison is due to leave easyJet at the end of June.

Mr Borghetti has been pursing his own business interests - including joining the board of US aircraft manufacturer Piper Aircraft - since leaving Qantas last May, and industry insiders say he is a logical choice because of his understanding of the travel market in Australia.

The former third-in-charge at Qantas did not return calls yesterday, but he has been been rumoured to be a likely contender since the non-compete clause in his contract expired on November 1.

The announcement of a replacement will be a relief for investors and staff, who have had to endure months of uncertainty about who will chart a new course for the airline. Fortunately for Mr Godfrey's successor, Virgin Blue appears to have largely overcome the worst of the downturn in air travel.

The airline hired executive search firm Heidrick & Struggles before Mr Godfrey publicly announced his resignation in July, and last month the board shortlisted about three candidates. Heidrick & Struggles also conducted a search for Qantas in 2008 to find a replacement for its former boss, Geoff Dixon.

Mr Godfrey, who has said he will remain at Virgin Blue until December if the need arises, has played a large role in vetting the applicants. The board is known to rely heavily on the co-founder's extensive knowledge of the airline and the aviation market.

David Baxby, a rising star of Sir Richard Branson's Virgin Group, is also seen as a possible candidate. But Virgin insiders have been playing down the likelihood of the former Goldman Sachs JBWere banker having an interest in the job.

Mr Baxby is a Virgin Blue director but spends most of his time managing the airline interests of Virgin Group, which has a 26 per cent stake in Australia's second largest airline.

Virgin Blue last week posted a better-than-expected profit in the first half of $62.5 million, compared with a loss of $101 million for the same period in 2008.

These "industry insiders" haven't been to correct lately.

ormer Qantas executive John Borghetti wins top job at Virgin Blue

* Steve Creedy, Aviation writer
* From: The Australian
* March 02, 2010 9:27AM



FORMER Qantas executive general manager John Borghetti has been appointed the next chief executive of Virgin Blue.

He will replace outgoing chief executive of Virgin Blue, Brett Godfrey.

No more details were immediately available.

Mr Borghetti left Qantas in April last year after losing out to Alan Joyce in the race to replace CEO Geoff Dixon.

Mr Borghetti spent 36 years with Qantas and had been in charge of the airline's domestic and international operations, where recent innovations included the introduction of a premium economy class as well as cabin and service redesigns for the Airbus A380 superjumbo.

The Virgin Blue board has had plenty of time to select a replacement because Mr Godfrey gave them ample warning that he intended to leave the airline later this year.

The board is understood to have cast a wide net in its search for a new chief executive, including players from European low-cost carrier easyJet and major overseas airlines.

However, it is understood the overseas candidates were put on hold pending discussions closer to home.
While Mr Borghetti's experience is with full-service product, one former airline executive noted this could fit in well with Virgin's move upmarket, as it tries to attract more business and government passengers.

"If that's the way they're thinking and they want to attack more of the Australian corporate market, Borghetti would be a good choice," the executive said, adding that his international long-haul experience would also be valuable.

The new chief will take over at a good time with the budget carrier last week outscoring Qantas for the first time with a $62.5 million profit for the half-year to December.

"I think this is the turning-point set of results, "Mr Godfrey said at the time. "I know it is easy to say because I'm departing, but I'm quite comfortable the business is quite solidly positioned."

Lucky Virgin!!
Wish he was running Qantas.
They are lucky to have him.

Task # 1....new uniform please!

I wonder how Steve Creedy found out so quickly? I only just received the email myself......... then again if it is like the rest of the operation us guys and girls are always the last to know!

Where will John lead us?? Who knows. I hope he brings some balance to the company and eliminates some of the Brettanisms we have to suffer.

Time will reveal all I suppose..................


Servo

Virgin Blue targets Qantas with new CEO

MATT O'SULLIVAN

March 2, 2010 - 10:44AM
Virgin Blue confirmed today that Qantas’s former third-in-charge, John Borghetti, will replace its long-time boss, Brett Godfrey, in May, in what shapes up to be a major challenge to its key rival in Australia.

Ending months of speculation about the heir apparent, Virgin Blue’s chairman, Neil Chatfield, said today that Mr Borghetti, a 36-year veteran of Qantas, was the right person to lead the airline ‘‘through the next phase of its evolution’’ because of his deep aviation experience and proven strategic capabilities.
Mr Borghetti, the 54-year-old who was overlooked for the top job at Qantas in 2008 in favour of Alan Joyce, said Virgin Blue was in good shape ‘‘and exceptionally well placed to build on its strengths and embrace revenue growth opportunities ahead’’.
His experience in running Qantas’s airline business could help Virgin Blue’s stalled efforts to capture a larger chunk of the high-yielding business market from Australia’s largest airline.
Although the broad terms of Mr Borghetti’s employment have ben agreed, various terms of the incentive components of his remuneration are still be be finalised.
Mr Borghetti has been pursing his own business interests - including joining the board of US aircraft manufacturer Piper Aircraft - since leaving Qantas last May, and industry insiders say he is a logical choice because of his understanding of the travel market.
The former third-in-charge at Qantas has been rumoured to be a likely contender since Mr Godfrey announced in July last year that he would leave Virgin Blue. The non-compete clause in Mr Borghetti’s contract with Qantas expired on November 1.
The announcement of a replacement will be a relief for investors and staff, who have had to endure months of uncertainty about who will chart a new course for the airline. Fortunately for Mr Borghetti, Virgin Blue appears to have largely overcome the worst of the downturn in air travel.
The airline hired executive search firm Heidrick & Struggles before Mr Godfrey publicly announced his resignation in July, and last month the board shortlisted about three candidates. Heidrick & Struggles also conducted a search for Qantas in 2008 to find a replacement for its former boss, Geoff Dixon.
Mr Godfrey has played a large role in vetting the applicants. The board is known to rely heavily on the co-founder's extensive knowledge of the airline and the aviation market.
Andy Harrison, the boss of British no-frills airline easyJet, was also seen as outside chance for the top job. Mr Harrison is due to leave easyJet at the end of June.
Virgin Blue last week posted a better-than-expected profit in the first half of $62.5 million, compared with a loss of $101 million for the same period in 2008.
Mr Borghetti will take the reins on May 8.
Shares in Virgin Blue were little changed in early trading, gaining half a cent to 63.5 cents.
[email protected]

After sitting thru a meeting of tech crew some time ago when he was asked a question relating to Virgin he replied that he would look at upgrading the cabin to a two class config and aggressively pursue more of the corporate market as well as upgrade the frequent flyer lounges. A very able man that allegedly did not like the bastardization of QF by Jetstar. He appeared to have a good relationship with staff and I think Virgins gain is Qf loss

Il Duce returns
 

Agree this will be Virgins gain.

Apart from the APA saga-Borghetti did a sterling job at QF. He ran Qantas Airlines as his own premium airline /empire. Working his way up from the QF mail room over the years meant that he was exposed to all sorts of people, shonks, processes ,products, initiatives and "marketeers". This experience will be invaluable.

His other asset is his Corporate Sales connections /experiences. City-Flyer,Lounge upgrades and Govt "contacts" will come in handy.

Also-he will have total control (apart from the Board)

My tip is that he will transform Virgin into Ansett mark 2. He's got the fleet, connections, leadership /motivational skills , energy, experience and biz savvy to pull it off.

The QF Board will rue the day that they cut him loose and chose a CEO with low cost , no frills and minimal aviation experience to run what was once an icon in the airline business.:ugh:

Will somebody buy that man a drink! :D

JB takes with him the inside knowledge as to where QF makes it's money & more importantly where it doesn't.

Hopefully mainline staff will now see a focus on the premium product, competing with VB rather than it's own subsidiary.

You better hope he has a better run than the last QF exec to leave and run a major Australian Airline other than Qantas!!!!!!

an ex Cathay Boss had a go at it as well, but didn't stick around for long..

the only good thing is that there is nothing that the current management dont know about Borghetti and hopefully the boards decision to pass over him for our "no frills" CEO will bear fruit.

The board would certainly have heard what Il Duce would have done if made CEO and they obviously preferred AJ's vision for the future of the Qantas Group.

As a Qantas employee i hope that they got it right!!!!

On the other hand perhaps a focus on a premium airline experience at Virgin will make Qantas lift its game. Our current "death by Napkins" domestic service offering my the "beehives" leaves a bit to be desired!!

and the winner is ???
 

#7 (permalink)
ozangel

Join Date: Dec 2003
Location: BNE
Posts: 264
I hear Grimace from McDonalds is looking for work?

He might just be a shoe in, what with the Hamburglar in charge of Human Resources?!

He can't speak, and is technically a purple blob of jelly with no specific purpose, but his main selling point is 'No Decisions' is better than 'Bad Decisions'. He just might save VB some $$$!

Maybe Borghetti could be number 2? Working for Grimace would have to be easier and more dignified than GD?!

10th August 2009, 20:35 #8 (permalink)
porch monkey

Join Date: Jun 2007
Location: deepest darkest recess of your mind
Posts: 301
I'd be pretty surprised if Borghetti got it. Not because he isn't any good, I personally think it would be a pretty good choice. At the end of the day, those fisharses wouldn't pay a bloke like that what he'd rightfully feel is fair. So no....

10th August 2009, 20:44 #9 (permalink)
greenslopes

Join Date: Mar 2006
Location: brisbane
Posts: 307
James Hogan.

10th August 2009, 22:02 #10 (permalink)
stubby jumbo

Join Date: Oct 2006
Location: Perth
Posts: 322
My money is on these .....in descending order:

*JB
*Rod Eddington ( Sir)
*Gary Toomey
*Mr Ed


Do I win ??????

Wow.

I'm not bowled over with news out of the Village too often, but this did it.

I tounge-in-cheek suggested it months ago to colleagues, but we didn't think it would ever be possible for the man who was so entrenched in his family airline of Qantas, the place that he poured his professional life into, to ever come and work for the 'other guy'. It just seemed too much of an ideological contradiction for him to abandon the airline that was his family despite the fact that ironically, they so swiftly abandoned him. I know that money talks and bull**** walks and all, but I have never had the impression that JB was the kind of guy to not have a higher level motivation to just the coin. I feel he has a vissionary type, internal company focus proved by his long life at Qantas.

I don't know many mates at QF that weren't dissapointed when he didn't replace Dixon. I don't know many that weren't worried about the direction that the QF group was clearly wanting to head when they appointed Joyce.

I must admit, I am extremely happy with this choice for us. I hope he has the scope to do the things that he was never given the chance to do at QF.

Time will tell, but my immediate thoughts are that 'everything's gonna be alright now'.

Forgetabowdit

Virgin...now has a CEO with so much to offer VB
...is replacing its B737 fleet over the next 5 years with a deal being negotiated with Boeing...
...has announced profits in the order of $65m and beyond for the next reporting season as well...
...a dedicated workforce that will respond to the enthusiasm under a new leader...
...VOz reportedly be in the black in the foreseeable future with a modern efficient fleet...

Qantas...is rejigging the inside of its ageing fleet..
....running around in Boeing dinosaurs....
....oh, yeah, they still have their pride....:eek:


I wonder if Qantas is shaking in it's boots....?

I think VB's future is rather healthy now that it has a full house...I'm off to buy some shares......:ok:

I wonder if VB cutting the old ownership plates off there aircraft and riveting on new lease company plates had anything to do with the profit that was announced?

JB always came across as a decent, quality driven sort of guy, which should be considered a threat to QF. :ok:

I've always thought you need two competitive competitors in major Australian markets. Keeps both players mean and lean, and benefits the consumer as well. (Think Coles & Woolies)

International is harder. In Australian terms maybe 40 foreign competitors and only one and a little bit Australian.

So good luck to VB under JB.

I still think the QF group have them in a nutcracker with JQ driving min cost per ASK, and QF having a much larger full-service network.

And I still worry about the fish and fowl thing in VB. Configuration becomes an issue if you try to do Super Y, Standard Y and Cheap Y in the same airframe in all markets.

QF have always struggled with that Internationally, with differing configs for differing markets reducing fleet efficiency and adding administrative cost.

We shall see. So far VB have done better than I expected.

Dubya - one reason you can say QF have an ageing fleet is that they've been around longer. VB is a pup, which started out with short term lease aircraft.

I think VB has uncovered a gem out of the rough, QF threw him to the wolves, we now have him to guide us through the next 10 or so years, Im very happy about that:ok:

Welcome aboard John.