RMIT experts available for comment on the Virgin Australia revival

Warren Staples (0407 584 564 or warren.staples@rmit.edu.au)

Topics: Corporate Governance, Business Ethics, CSR, Business & Government relations

"Today (15/05/20) marks the deadline for EOIs ('non-binding indicative offers') to be lodged with administrator - Deloitte's Vaughan Strawbridge.

“These bids will then be crafted into "serious, binding offers" and a decision made by the middle of June as to what replaces Virgin Australia.

“What's needed in any Virgin Australia bidder and replacement is an entity with deep pockets, a measured strategy, operational smarts and lots of patience – that’s what has the best chance of making a go of it.

"Lots of the other mooted bidders (private equity firms, wealthy Australians like Andrew 'Twiggy' Forrest) may not have the patience, or operational know-how.

"We tend to think of aviation as a public good and preserving competition as important - but it is likely that a far more measured strategy will be needed from any Virgin Australia replacement.  

“Cut-throat fares and capacity wars lead to collapses and undermine service reliability to regions.

"The government and regulators should ensure that any successor that takes to the skies is fit for purpose and won’t crash in 10 or 20 years as a result of the poor governance and risky financial engineering." 

Warren Staples is a Senior Lecturer in the School of Management at RMIT University whose research and teaching focuses on corporate governance, corporate social responsibility, business ethics and business & government relations.

Andrew Linden (0401 086 326 or andrew.linden@rmit.edu.au)

Topics: Corporate Governance, Business Ethics, CSR, Corporate Strategy, Strategic Communication Country Expertise: Germany/EU  

"Regular airline failures not only push costs onto employees and creditors, they undermine important Australian industries such as tourism and leave regional communities isolated.

"The state-owned QLD Investment Corporation (QIC) has deep pockets, and patience but will need to find expertise to get Virgin Australia airborne.

“Any loan guarantees will put taxpayers on the hook with no upside.

"Government and regulators need to ensure that any future duopoly is sustainable."

Andrew Linden is a PhD researcher on German corporate governance and a sessional Lecturer in RMIT's School of Management who teaches corporate governance, global business and business communication.

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