Branson settles for smaller Virgin Australia stake, but is now airline’s second-largest shareholder
Virgin Group is now the second-largest shareholder of Virgin Australia, despite settling for a smaller equity stake in the rebooted airline.
The group, which was founded by charismatic billionaire entrepreneur Richard Branson, confirmed to Travel Weekly that it now owns a five per cent equity stake in Virgin Australia, making it the airline’s second-biggest shareholder.
Prior to Virgin Australia entering administration back in April, Virgin Group owned roughly 10 per cent of the company’s shares, with Etihad Airways, Singapore Airlines, Nanshan Group and HNA Group each owning approximately 20 per cent.
Virgin Group also confirmed that it has resigned a licensing agreement with Virgin Australia’s new owner, Bain Capital, for use of the Virgin brand. However, both Virgin Group and Bain refused to disclose the value of the new licensing agreement.
In a statement provided to Travel Weekly, Branson said he was delighted that Virgin Australia was ready for take-off once more, “soaring out of administration with a clear future direction to fly towards”.
“We’re very optimistic about the future and enormously proud of all of the Virgin Australia team,” he said.
Virgin Group CEO Josh Bayliss added: “Virgin Group is very pleased to be Virgin Australia’s second-biggest shareholder and to be working with Bain, our long-term partners on Virgin Voyages, to participate fully in the revival of the airline.
“Led by Jayne Hrdlicka, we are confident that Virgin Australia’s focus on enabling its incredible people to provide an outstanding service for customers will see the airline provide strong competition to Qantas and an exceptional experience for flyers.”
Earlier this week, Virgin Australia’s new boss outlined the airline’s future direction under Bain, which will see it compete as a mid-market carrier.
Virgin Australia also received another post-administration boost yesterday, with the Australian Competition & Consumer Commission (ACCC) granting interim authorisation for the airline to cooperate with Alliance Airlines on 41 regional routes and two short-haul international routes.
Virgin pilots’ association to join forces with TWU
In other news, the association representing Virgin Australia Group pilots (VIPA) and the Transport Workers’ Union (TWU) are preparing to sign a memorandum of understanding with the intention of moving towards amalgamation.
The move will kick-off talks on details on formalising the relationship between both unions over the coming weeks.
TWU national secretary Michael Kaine said an amalgamation would ensure the best outcome for members of both unions.
“The TWU and VIPA worked very well together during these past few months to get Virgin back on track after it went into administration,” he said.
“Our common aim has been to help make Virgin the strong second airline again that Australia needs. We know that the way to do this is through Virgin’s dedicated and well-trained workforce.
“By coming together, we can make a strong case for high standards and work to protect the interests of those who matter most: Virgin workers and the travelling public.
“It is vital there is a plan and a pathway out of the pandemic crisis for the aviation industry. The federal government is failing to do this, but workers in TWU and VIPA are pushing ahead to make it happen.”
VIPA president John Lyons said an amalgamation would bring workers together to fight for Virgin’s future.
“The TWU and VIPA have clear common interests and it makes sense to stand together formally to push for Virgin’s future,” he said.
“We have stood together during the administration process and in holding the new owners to account. We have jointly made the case to the federal government that they need to do more to support Virgin and the rest of the aviation industry.
“An amalgamation would allow us to develop and deepen this cooperation and to fight for one of Australia’s most important industries. The Australian economy depends on a robust aviation industry and we intend to push for its survival.”
Earlier this month, the Senate passed a motion setting up an inquiry into the future of the aviation industry.
Featured image source: Jen Dainer/Virgin Australia
Email the Travel Weekly team at traveldesk@travelweekly.com.au
airline aviation Bain Capital John Lyons Josh Bayliss Michael Kaine pilots richard branson shareholder Transport Workers Union twu VIPA virgin virgin australia Virgin GroupLatest News
ERDI offers a path for hospitality leaders of the future, says hotel group CEO
Teaching the next gen in hospo how to serve drinks, take a restaurant order and hold a conversation - yep we're in!
Marketing costs double for tourism operators as Australia’s global footprint shrinks
Cost of living crisis? Forgeddaboutit! If you run a tourism business, your costs have doubled since Covid.
APT adds fourth ship to Travelmarvel fleet in Europe to meet demand
APT punches above its weight in European river cruising - let's see what its got when it comes to naming conventions.
Getting married? W Melbourne has three new packages perfect for the special day
The 'W' themed lights and settings are optional, we hope!
SKYE Suites gets behind Australian Fashion Week, partners with Shark Beauty
We were hoping to get a start at a fashion week event, but apparently our dress sense wasn't up to scratch...
Roadshow Vietnam focus on Ho Chi Minh City heads to Sydney and Melbourne
It's all happening tomorrow in Parramatta and we're sure you'll be able to find a good bahn mi somewhere.
NCL announces two new Aussie BDMs as cruising goes from strength to strength
Cruising may be getting stronger, but we want to know which new BDM is the strongest. We should arrange an arm wrestle.
Inspiring Vacations announces Josh Grocke to new partnerships role
We're sure the best partnerships come about over a long lunch, something Josh will certainly be looking forward to.
Dondra Ritzenthaler announced as Azamara’s new CEO
Dondra's got big news to celebrate, meanwhile we're celebrating a break in the rain today in Sydney.
TTC’s hosting a masterclass series for Aussie agents unlocking the secrets of its five brands
Become an agent of many hats with TTC's new masterclass series!
Dorsett Melbourne appoints new director of sales Maggie Wong
This top female team at the Dorsett Melbourne aims to take the hotel to new heights - even the lucky eighth floor.
Western Sydney Tourism unveils fresh board ahead of ’26 airport opening
'Connect-Stay-Experience', that's the Western Sydney's tourism taskforce's motto. We sort of prefer 'West Is Best'!
From Olympians to mindset coaches, Helloworld’s OMC conference wraps in style
Say hello to a good time and make sure you're at 2025's edition!
Bunnik Tours welcomes KJ Phillips as the new BDM for QLD
We apologise in advance for winding Karen up as our State of Origin sledging begins to ramp up.
Drifter to usher in new age of affordable hybrid accommodation in Christchurch
Sort of like a hostel, but far, far ritzier!
Icebergs restaurateur Terzini joins Mangan at Sydney International Airport
Forget McDonald's or the sushi that's been there all day, dining at Sydney Airport just got a whole let better!
Sabi Sabi Earth Lodge: A beacon of luxury in the Kruger
If the lead image wasn't enough to convince you this is next-level luxury, take a peep inside.
Delegates ready for Africa’s travel showcase Travel Indaba at Durban ICC
How's it? We've requested a bag full of biltong on our reporter's return from this shindig.
APT’s world-first hydraulic-powered restaurant and bar ‘will be the envy of river cruises’
It may have been laughed off at first mention in the APT offices, but now it's here, APT are on top of the game!
Administrators appointed in wake of Air Vanuatu collapse – but there is hope
Another one bites the dust. We hope you sang to the tune when reading that!
South Australian beach crowned best ‘hidden gem’ in the country
Stoked baby! Or was that a typo?
Avalon Airport champions low-cost rail connection from Melbourne CBD
Avalon rail connection? Bring it on! In two years, say officials, but we say they've got Buckley's.
2024 Green Revolution Summit brings travel heavyweights into green fuel discussion
It's almost like the organisers read our article on sustainable fuel this week.
Wendy Wu Tours first China mega-famil for 100 travel agents will be full of Wow!
China travel guru Wendy Wu should have no trouble ordering 100 dumplings for key travel agents on her mega famil.
Oaks Hotels & Resorts gets behind Netball’s Suncorp Super League
So Netball Australia draws its moral line somewhere between Gina Rinehart and Oaks Hotels & Resorts.
Tourism Australia appoints new regional general manager United Kingdom
Expat Aussie Andrew Boxall steps off a Flight Centre gig to plant the flag as UK Tourism Australia GM.
Chef Alessandro Pavoni unveils Cibaria at Manly Pacific MGallery Collection
Only problem is you'll get stuck on the Spit Bridge on the way back, after you finish your meal.
Hotel Review: Atlantis The Royal – Stunning in every sense
You can look but you can't touch. At least that's what it feels like when reading an article on this masterpiece.
Flight Centre’s Big Red Sale starts today
Flight Centre taking inspiration from Qantas' Red tail sale yesterday, someone's gotta change for the next round.
Aurora Expeditions announces savings for solo travellers
Save your money and travel and go solo, just don't spend it all buying friends at the bar.
Etihad and Tourism officials launch free Abu Dhabi Stopover
Etihad's giving you free hotel stays on your stopover while Qantas pays fines for ripping people off.
New MSC Australia boss talks hot topics for local cruisers, including the Caribbean
New MSC Australia boss, Antonio Paradiso, spills the Caribbeans on where he expects Aussie cruisers will go next.
Contiki’s latest campaign inspires travellers to engage with the world around them
Hands off! Influencers invited on holiday and told not to post anything. We can assure you they're back at it now.
Aussies a hit on the conference floor for IPW 2024
Diana Ross on opening night, Keanu's Dogstar band and a dozen lobster rolls. All in a week's work at IPW 2024.
Disney excited about prospects of cruise business as Disney Treasure nears completion
Disney's booming cruising business is set to knock Disneyland experiences out of the park.
Scoot’s first E190-E2 flights take off between Krabi and Hat Yai
When flying's a pitch. Airline lite Scoot offers a standard seat pitch of 29” on its new 112-seater.