Virgin believes its first profit in 11 years its proof its turnaround is working. But, ironically, its return to the ASX could hinge on Qantas regaining altitude.
Virgin Australia’s return to profitability for the first time in 11 years is an important milestone in chief executive Jayne Hrdlicka’s quest to bring the airline back to the ASX.
Although the numbers are clearly fuelled by a unique year in Australian aviation, where booming demand and limited supply meant prices surged, Virgin insiders say they show the reborn airline’s strategy is working in three ways.First, they say Virgin’s value-for-money pitch to premium leisure travellers, the SME market and cost-conscious corporate flyers is resonating.
Virgin sources are at pains to emphasise that the $300 million turnaround program that Bain announced as the airline emerged from administration is not complete. It has spent the last year investing in back-end technology systems , and will spend more on customer-facing technology in the year ahead.
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