Virgin will be back in black: Borghetti

Virgin will be back in black: Borghetti

Virgin released its Annual Report this morning, with CEO John Borghetti outlining the airline’s strategic priorities for the future.

“Over the next two years, the Virgin Australia Group will continue to focus on the Virgin Vision 2017 priorities,” he said.

So what does the future of Virgin Australia look like?

Borghetti said the 2017 vision would zone in on growth opportunities, drive yield enhancement, implement a new cost program, optimise the balance sheet, set a new customer experience standard and develop its staff to their full potential.

“Based on current market conditions, all fundamental business metrics are on track for the Group to return to profitability and report a Return on Invested Capital in line with its cost of capital for the 2016 financial year.”

Borghetti stated the domestic business will “continue to deliver margin improvement” in 2016, as well as Virgin Australia International raking in profits by the 2017 financial year.

Velocity Frequent Flyer will deliver a minimum of 15% earnings growth per year for both 2016 and 2017, and cargo and charter will continue to increase earnings growth, if Borghetti has anything to do with it.

“Tigerair Australia will be profitable by the 2016 financial year,” he added.

The report also set its sights on “strengthening relationships” with the travel community, citing its partnership with Tourism Australia as a major arrangement to support Australian tourism and promote its reputation.

“I look forward to continuing to deliver on our strategy and to delivering sustainable returns for shareholders over the long-term,” Borghetti concluded.

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