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Shareholder revolt looms at VA
This just in: Appears Etihad have someone in mind to buy some of their shares AND become the mover in a bid to replace J.B. with John Thomas (who was boned last year). And thus effect CHANGES.
From The Australian: Virgin Australia is expected to face an investor revolt led by a new activist shareholder who could emerge with the aim of installing a former executive as the airline’s new boss. Etihad’s relatively new chief financial officer, Mark Powers, was reportedly in Australia last week to hold meetings ahead of a decision by the airline to sell down a chunk of its stock. Dealmakers thought a transaction would have occurred by now and expect it could happen imminently. DataRoom understands former Virgin executive John Thomas could be put forward as chief executive by a new activist investor with the backing of most of the airline’s current investors. On the current registry, Etihad holds nearly 21 per cent, followed by Singapore Airlines with 20.03 per cent, China’s Nanshan Group which holds 20.02 per cent and HNA Group with 19.85 per cent. The airline’s founder, Richard Branson, retains 10.02 per cent. The future of Etihad’s stake has been under question for the past few months after the airline flagged that its investment with Virgin was not in line with the strategy put in place by chief executive Peter Baumgartner. Abu Dhabi’s Etihad has recently been reviewing its strategy. The carrier made a $US1.87 billion net loss for the 2016 financial year, including taking a hit from poor performances by Italy’s Alitalia and Germany’s Air Berlin, which is no longer flying. It’s expected that an activist investor could take a 5 per cent stake in the airline and then start lobbying for major board and management changes. The new investor would be likely to gain the support of the Singapore group, Etihad and Branson. The trio is understood to be keen for change to be implemented at the airline. The outlook from the Chinese investors is believed to be difficult to judge and their opinion on the prospect for change has been tough to gauge by onlookers. Given John Borghetti has flagged that he will leave Virgin in 2020, its expected that putting a new chief executive in place earlier would be made a priority. The proposition for Thomas to return to Virgin is understood to be supported by the company’s major shareholders after his brief stint, which ended last year. At the time, Thomas was running Virgin’s domestic and international businesses and was considered the second in charge. However, he lasted just a year before he left in June. Virgin said at the time that Thomas was not the “right fit’’ but he is believed to have the backing of the shareholders. For the half*year to December 31, Virgin made a statutory after*tax profit of $4.4m and the net loss attributable to owners was $10.3m. On the carrier’s preferred measure, underlying profit, it had its best result in a decade at $102.5m. |
The link is behind a paywall. |
JT’s return would be a godsend for VA. He has a proven track record (look at what he did in the USA) and knows how to run a business. He already knows the ins and outs of the business. In the short stint he had at va he increased the pilot group engagement and created the success story that is economy x. His only fault was that he was putting upper management in their place by informing them of their short comings. They obviously referred to this as him ‘not being the right fit’. I for one look forward to his return as the ceo of the group. |
Not just the support of the shareholders but nearly EVERY staff member at Virgin Australia. Actually made some money for the company with his idea's. Actively listened as well.
I personally thought JB was the messiah when he started. Look how that turned out. Hopefully John Thomas will get the CEO job and we can all move forward. |
He has a proven track record (look at what he did in the USA) and knows how to run a business. He Highly unlikely to appoint someone lacking the experience running a $5b+ company. He just has never done it before. Virgin was his first real executive job. |
And JB started in the mail room. So what. Warrent Buffet had never been a CEO either, look at him now.
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Originally Posted by Servo
(Post 10178840)
And JB started in the mail room. So what. Warrent Buffet had never been a CEO either, look at him now.
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Being a yes man and "working" your way up a pole doesnt make you a good CEO either. I respectfully think you are missing the point. JB's reign has not been stellar.
But this is not about JB anymore. |
An indication of the worth of a senior manager is whether they shoot the messenger when they get told news they don’t want to hear. A poor manager will punish those that deliver bad news. And the indication of the worth of a less senior manager is their willingress to provide information the boss needs to hear, even though they know it will result in grief. A good one will provide fearless advice to their boss and not tailor the info to save themselves. A poor one filters the bad news out and only delivers info that won’t get them yelled at. i will leave it to others to decide if they have one of the first and many of the second. |
Your missing the point. Did he stay in the mail room until his Virgin appointment? JT has been the only executive in recent years that had any idea how to run an airline properly and if he does come back, I hope it happens before the company becomes a total train wreck. There’s a lot of damage to be undone! |
The info I got was JT was removed by both JB and EB. Last time I checked she is still the boss, so it’s all really just media dribble at this time. I’d say highly unlikely to see JT under EB’s reign. |
Clearly EB is 95% of the problem and should be removed from the board. |
Originally Posted by Interceptheading
(Post 10179518)
Clearly EB is 95% of the problem and should be removed from the board. |
Anyone know what Rob Fyfe is doing these days?
https://en.m.wikipedia.org/wiki/Rob_Fyfe |
Time to dust off the old CV , again ! |
I thought it was common knowledge that Etihad was selling 5% to SQ?
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Didn’t think sq or any of the major shareholders could buy more outside of the creep provisions without launching a full takeover bid. someone wise in the ways of the asx will be able to correct me :) |
Originally Posted by Roj approved
(Post 10179600)
Anyone know what Rob Fyfe is doing these days?
https://en.m.wikipedia.org/wiki/Rob_Fyfe Besides he is busy organising a hole on the South Island's West Coast |
Charma is correct. If they (or any one of them) buy 5% on top of their 20% then they will have to launch a formal takeover. Can't see any of the incumbents doing that as it stands. They will all sit on the creep provisions. Will be interesting to see who the 5 % investor is as it would have to be someone of influence to get three of the shareholders to agree to a new CEO. Interesting times in Sydney for the next few months. Let the manoeuvring begin (well that has already started apparently)
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Originally Posted by wheels_down
(Post 10178842)
Your missing the point. Did he stay in the mail room until his Virgin appointment? |
No longer an Australian airline. They should be made to take the Australian flag off their aircraft...
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Originally Posted by TBM-Legend
(Post 10179886)
No longer an Australian airline. They should be made to take the Australian flag off their aircraft...
And stop the pretence that the international arm is an Australian carrier. It's a ludicrous but apparently legal farce. |
Article implies etihad may sell shares. If investor has SQ, Branson and Etihad aligned, that is more than 50% of shares. Doesn’t matter what EB thinks or wants, she will be irrelevant. Boards are in place to represent shareholders, not tell them what they can and can’t do.if a majority of shares want a particular outcome then the board would be powerless to stop them. The board can tell the CEO what to do ( theoretically) but it cant tell the shareholders what they should do. if this shareholder revolt is successful, the current board is history. It cannot be a coincidence that this story surfaces a week after JB effectively resigns. I’m betting there is an in principle deal in place and JB is a dead man walking. |
I’m betting there is an in principle deal in place and JB is a dead man walking. It just annoys me that if he walks out the door early, his payout will probably be more than enough to buy a dozen McLaren’s. |
JB and Elizabeth Who - haven’t they already left. 5% - probably Aeroflot this time. Australian flag - didn’t notice one on the last walk around. ps. Is the virgin pilot forum offline? I can’t login. |
You all have it wrong, it will be Merrin McArthur! |
Hoss Offline for an upgrade I believe. |
Originally Posted by No Idea Either
(Post 10180332)
Hoss Offline for an upgrade I believe. Perhaps there is some truth in the rumour that the website is now being run by management. |
Take a look at the 100% Virgin Oz Tiger Airlines clunkers..
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Originally Posted by SHVC
(Post 10180329)
You all have it wrong, it will be Merrin McArthur! |
Fair point TBM, I think that was after they cut the cake then played ‘pick a flag out of the hat’ up at the village. Pure coincidence. |
SHVC, I reckon it will be a “sharp” pick whomever gets the gig. |
Originally Posted by hoss
(Post 10180328)
Australian flag - didn’t notice one on the last walk around. https://cimg1.ibsrv.net/gimg/www.gmf...057fbd3003.jpg |
Originally Posted by Buster Hyman
(Post 10180410)
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Originally Posted by havick
(Post 10180412)
mic drop.. :suspect: |
Wrong colours.... anyway, I was admiring her figure and making sure the mud wasps weren’t looking for a new home ;) Nothings worse than a bust covered in wasps! |
Could someone start a petition to the board for JT. Sounds like 90% of the staff want it. Would we dare put are names in it and face JBs wrath? |
Originally Posted by On Guard
(Post 10180458)
Could someone start a petition to the board for JT. Sounds like 90% of the staff want it. Would we dare put are names in it and face JBs wrath? There are idea's being floated with regards to JT. Hopefully they come to fruition. |
Has JT ever been at the helm of a large company? to my knowledge he has only ever been a consultant. big difference between the two!
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I think that was mentioned earlier in this thread in regards to lack of expertise. Either way way you can forget JT as long as EB is there. She ain’t gonna hire him when she fired him! |
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