Virgin Australia has named Dave Emerson as the CEO to lead the company ahead of a planned ASX listing, replacing Jayne Hrdlicka who announced her intention to resign in February last year.

Emerson takes on the leadership position after almost four years as the company’s chief commercial offer, with his transition into the role beginning immediately ahead of him formally assuming the role on Friday 14 March.

“After a global search, it was clear that Dave is the right leader to continue the implementation of Virgin Australia’s strategy,” says Virgin Australia chairman Ryan Cotton.

“Detailed plans are in place which will deliver continued growth, strong business performance and continuity of strategy further enhancing Virgin Australia’s competitive position in the Australian market.”

Virgin Australia, which has been controlled by US private equity group Bain Capital since 2020 when it acquired the business from voluntary administrators, had originally planned an ASX listing for the airline in 2024. However, weak market conditions and the announced departure of Hrdlicka last year had placed the partial share float plans on the backburner.

The airline, which like Qantas Airways (ASX: QAN) has been buoyed by two years of profit growth, has firmed up its competitive position against Qantas after the federal government last month approved plans for Qatar Airways to take a 25 per cent stake in the company - a deal that was announced last year.

Emerson says he is “humbled by the opportunity to lead the airline and it’s 8,000 strong team on its next exciting chapter”.

“I have experienced firsthand the remarkable journey over the past four years as we have reinvented Virgin Australia,” he says. “Today, we are Australia’s most loved airline, delivering industry leading operational performance and record financial results.”

Virgin is reported to have posted an underlying profit of $439 million profit in the latest half year from $3 billion in revenue from its domestic operations. This compares with an underlying profit of $1.39 billion for Qantas from $12.1 billion in revenue, which includes international travel.

Virgin’s performance is expected to be further boosted by its recently announced plans to resume services on long-haul routes.

Meanwhile, Emerson says he plans to continue the transformation journey for Virgin that has been progressing under Hrdlicka’s tenure as CEO.

“The strategy we set as we emerged from administration several years ago is now paying off,” he says.

“As we return to long-haul international flying, and innovate our domestic services, we can open greater choice and even better value travel experiences for our customers, including more opportunities to reward them for their loyalty. Importantly, it also creates new opportunities for our team.”

Cotton paid tribute to Hrdlicka’s legacy as CEO of Virgin since her appointment by Bain Capital in November 2020.

“From administration and the challenges of restoring Virgin Australia’s network post COVID, to our recent announcement of a return to long-haul international flying with a new strategic investor, Jayne has been tireless in her mission to lead this company back to greatness,” says Cotton.

“Virgin Australia is in an excellent position for the future thanks to her leadership through some of the most difficult times in our industry.

“Jayne shared with us all a vision for the role Virgin Australia could play in Australian aviation and has led the rebuilding of every aspect of our airline to ensure that we could deliver great outcomes for our people and our customers while also delivering significant returns to shareholders.

“We are sad to see her go, and she leaves with our deepest appreciation and gratitude for a job well done.”

Hrdlicka describes her time at Virgin as a “career highlight and a huge privilege”.

“Today, Virgin Australia is the most reliable airline, the most trusted and the most loved airline in the country and is delivering exceptional returns for its shareholders,” she says.

“We have detailed plans in place for the next four years which support a very bright outlook for Virgin Australia Group. It is now the perfect time to transition leadership for this next chapter.

“Dave is an excellent choice to succeed me as CEO. He has proven himself as a strong leader and has been a key contributor to Virgin Australia’s successful transformation journey.

“His breadth of experience will be invaluable to the company and he brings the added advantage of being part of the team that created our blueprint for continued improvement in both profitability and growth.”

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