Virgin Australia Sold to Bain Capital – AIR044

AFF on AIR Podcast

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: AFF on Air Discussion thread - a dedicated AFF thread to discuss the podcast and ask questions Virgin Australia Sale to Bain Capital Approved Virgin Australia Customers to Receive “Future Flight Credits” Goodwill Lost: Customers Have Long Memories Upcoming Frequent Flyer Solutions webinar: Australian Domestic Travel Tips & Tricks (9 September 2020) Frequent Flyer Gazette articles referenced in the fortnightly news round-up: When Should Australia Lift its Outbound Travel Ban? International Arrival Caps Locking Out Australians Qantas Cuts More Staff Boeing 747s Now Operating Just a Handful of Routes Marriott Bonvoy Status Match U.S. Airlines Permanently Axe Change Fees