Virgin Australia Sold to Bain Capital – AIR044

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Manage episode 271224877 series 2475877
By Matt Graham - Australian Frequent Flyer Editor. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

On 4 September 2020, Virgin Australia creditors voted to approve the airline’s sale to U.S. private equity firm Bain Capital for $3.5 billion. This was the final major hurdle in bringing Virgin Australia out of voluntary administration and avoiding liquidation. The sale is expected to be completed by the end of October. So, how did Virgin Australia get to this point and where is it going from here?

After launching as a low-cost carrier in 2000 (Virgin celebrated its 20th anniversary this week with no fanfare), then relaunching as a full-service airline in 2011, it’s now planning to reinvent itself a second time as a “value” carrier. Is this a Goldilocks moment or does Virgin 3.0 risk getting squeezed out of the market?

Episode contents:

  • 0:55 – Fortnightly news round-up
  • 12:04 – Virgin Australia’s sale to Bain Capital is approved. How did we get here, and what’s next for the airline?
  • 27:35 – Customers have long memories. Why aren’t more businesses doing the right thing?

Links:

Frequent Flyer Gazette articles referenced in the fortnightly news round-up:

50 episodes