CEO's exit sinks Virgin Australia's 2024 IPO plans

The sudden resignation of the CEO of Virgin Australia (VA, Brisbane International) has scuttled the likelihood of any IPO in the short to medium term, according to Australian business media. Bain Capital, the owners of Australia's second-largest scheduled passenger carrier, had initially hoped to partially float the airline last year. Instead, with changed market conditions and the exit of CEO Jayne Hrdlicka, Bain is reportedly looking at a trade sale. Bain acquired Virgin Australia for A$3.5b Australian dollars (US$2.28b), including liabilities, in late 2020 after the carrier collapsed earlier in the year. The airline is now profitable but is struggling to claw additional market share from Qantas Group and is experiencing significant reliability issues. In a statement dated February 20, 2024, Virgin Australia said Hrdlicka had "decided now is the time to transition on from the role of CEO." However, The Australian newspaper later reported that Bain Capital had been unhappy with Hrdlicka's performance for 12 months, including her failure to capitalise on rolling problems at Qantas in 2023. Hrdlicka's side hustle as Tennis Australia chairwoman and her consequent time-consuming involvement in the Australian Open also reportedly left Bain underwhelmed. On February 19, Bain told Hrdlicka her time was up.<br/>