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In light of Virgin Australia likely becoming a publicly listed company once again, the Transport Workers Union (TWU) has called for the airline to recognise the hard work of its staff in bringing the company out of administration.
The airline’s current owners, Bain Capital, hinted heavily at putting the airline back on the ASX on Monday, saying that it would “seek advice” on a “potential future IPO”, but has not yet made any financial decisions.
The company had to meet several financial commitments to reach this point, the achievement of which can be attributed to the efforts of the company’s workers, argues the TWU.
Under Bain Capital ownership, thanks to the hard work of the airline’s workforce, Virgin will return as an ASX-listed company having met several goals such as being a “fuller capacity airline, maximizing [sic] jobs, retaining regional operation VARA [Virgin Australia Regional Airlines], [adding] tiered cabin classes, airport lounges and the airline’s international arm.”
The union has said that with airline staff having worked so hard to save the business, and fatigue setting in for many, Virgin must recognise and address their workers’ endeavors.
“TWU members fought hard to save Virgin and have held new owners to account over the past two years, securing vital long-term commitments to the airline and workforce,” said TWU national secretary Michael Kaine.
Virgin’s passionate and loyal workforce have stood by the company through incredibly tough times, and worked hard through immense workload pressures to ensure the business returned as a strong competitor.
“With a float now on the cards, workers must be rewarded for their crucial role in the company’s success. We welcomed Virgin’s announcement that it would bring forward a bonus profit share scheme as inflation surged, as well as additional reward payments.”
Bain Capital purchased Virgin Australia in August 2020 after the company entered administration in April 2020. While the company hopes to relist the company on the ASX, it has said that it aims to maintain a “significant shareholding.”
“Prior to covid [sic], Virgin Australia had a proud history as a public company. While there is currently no set timetable, at some point in the future, if any IPO does happen, Bain Capital would welcome public market investors joining us as shareholders in what is a great Australian company,” said Bain Capital partner Mike Murphy.
“Bain Capital has made a long-term commitment to support Virgin Australia’s growth and sustainability. It is Bain Capital’s current intention to retain a significant shareholding in a future IPO of Virgin Australia.
“Bain Capital will ensure these preliminary deliberations are not a distraction for Virgin Australia management, who can remain 100% focused on their roles.”
Following the return to real profitability, Virgin Australia is confident in its “business strength and operation.”
“We have a strong balance sheet, some of the best management in the industry working on our ongoing business transformation, and we’re well advanced in returning to profitability this financial year.
“We’ve only just touched the tip of the iceberg in what’s possible, and there’s so much energy right across Virgin Australia to make sure we are doing our best to leave a positive difference every time our guests fly with us.”
