iscover
Virgin Australia could relist on the ASX within months, according to reports.
Sources have told The Australian and The Australian Financial Review that the airline, owned by US financier Bain Capital, and its executives have been meeting with potential investors, while the group has also been restructured in new filings as a public company.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
According to the Financial Review, the carrier has also started hiring for a new investor relations team, and could see an IPO by June.
The news follows the appointment of former chief commercial officer Dave Emerson as Virgin’s chief executive after the exit of Jayne Hrdlicka, as well as the approval last month by the Australian government’s Foreign Investment Review Board (FIRB) of Qatar Airways’ purchase of 25 per cent of the company.
The refloating of Virgin has been mooted for several years following its delisting after it went into administration in 2020 during the COVID-19 pandemic. It was subsequently bought by Bain, which has spent the past five years returning the company to profitable operations.
Virgin’s shareholders – including Bain, the Virgin Group, and Queensland Investment Corp – in 2023 each took a share of a $730 million capital return proportionate to their stakes in the airline, or 93 per cent, 5 per cent, and 2 per cent respectively.
Then-CEO Hrdlicka tamped down speculation of an IPO, saying in July 2023 that the “timing had to be right”.
“We’re very, very focused operationally and on delivering new aircraft into the fleet and delivering our schedule. Of course, the IPO is happening in the background, the planning, and as we’ve always said, there’s no pressure on timing when we’re ready,” she said.
As of 2023, Bain was expected to retain between 50 and 60 per cent of the airline after the IPO. The investment giant paid $3.5 billion for Virgin in 2020, including both cash and debt.
Virgin was late last month given final approval by the ACCC to launch flights to Doha using Qatar Airways planes and crew, marking its return to long-haul wide-body international flying after cutting back to an almost entirely 737-based fleet post-administration.
The decision was widely expected after the consumer and competition watchdog issued a positive draft determination in February, but signifies the very last hurdle the local carrier had to clear before launching the services.
Virgin Australia will wet lease Qatar Airways 777-300ERs to operate flights from Sydney, Perth and Brisbane to Doha starting in June and from Melbourne starting in December.
The services will be operated by Qatar crew and aircraft in a so-called “wet lease” agreement, but Virgin has pledged to send its own crew to Doha for training so those roles could one day go to its own local crew.
Virgin Australia and Bain Capital declined to comment.
[email protected]
says:As we have said before, if there was another eager major investor about, we would have heard about it but no word yet. Assuming Bain retains 51% with Qatar holding 25% the remaining 24% may not be attractive to a single major investor and it is unlikely that another airline would be interested so interesting times ahead! I would not be surprised if Qatar picked up the balance or close to it as they would have more control and be better able to direct the way forward.