Virgin Australia chief executive Paul Scurrah's position is under question following the airline's takeover by American private equity firm Bain Capital. This follows a union’s concerns that the new owner is aiming to put former Jetstar boss Jayne Hrdlicka in charge and turn the airline into a low-cost carrier.
The Transport Workers Union (TWU) has suspended negotiations with Virgin's new owner, Bain Capital, over a new enterprise bargaining agreement. The union is concerned Bain wants to move to a low-cost airline model. It has sought confirmation about any changes to the airline's management and services
Sources have told the Australian press that despite Scurrah's public endorsements of Bain Capital, there have been tensions between him and the new owner, with Scurrah pushing for Virgin to remain a full-service airline under Bain's ownership.
Speaking at The Australian Financial Review's National Infrastructure Summit on Wednesday, Scurrah said he would not comment on speculation that former boss at Jetstar and A2, Jayne Hrdlicka, would be replacing him. Hrdlicka was part of the team that helped secure Bain's bid for Virgin, and had been tipped to take on a board role with the revamped airline.