Virgin Australia has appointed logistics executive Paul Scurrah and seasoned transport as its new chief executive.
Most recently, Scurrah was chief executive at ports operator DP World Australia before leaving at the conclusion of a contract. He was also chief executive at Queensland Rail.
Along with general manager roles at Flight Centre Aurizon and Tourism Queensland, Scurrah has aviation experience, having worked at Ansett, Airlines and Qantas. He was also among the founding directors of Regional Express (Rex).
Currently, Scurrah is a manager of the Australian Football League team Gold Coast Suns. He will join the Virgin Australia board when he begins as chief executive.
Virgin Australia chairman Elizabeth Bryan clarified Scurrah as a highly regarded business leader in Australia.
“His appointment is testament to his leadership credentials that include more than 20 decades & rsquo; experience in logistics, transportation, travel and aviation, & rdquo ; Bryan said in a statement.
“The board received tremendous interest in the function both locally and globally and Paul’s highly applicable transport and logistics experience, and strong commercial background make him the ideal candidate to consolidate the Group’s accomplishments and continue to construct momentum into the future. ”
Scurrah, who resides in Brisbane, will join Virgin Australia together with the business in the middle of a three-year transformation program which has involved the disposal of Embraer E190 regional jets along with some ATR turboprops, the transition of Tigerair Australia from an Airbus A320 into Boeing 737-800 operator and capital raising efforts to enhance the balance sheet.
And the airline is fighting with a Qantas that is currently making healthy gains.
In the end, there’s ongoing speculation about the company’s share register, that comprises five major shareholders in Etihad Airways, HNA Group, Nanshan, Singapore Airlines and Sir Richard Branson’s United Kingdom-based Virgin Group, and also whether the business would become delisted from the ASX and obtained private.
Instead, it offered the choice to sell their shares back to the firm for 30 cents per share to shareholders with less than $500 in shares.
Its latest fiscal guidance was for underlying profit before taxation to maintain in excess of 20 per cent at the half compared with the prior corresponding period.
“The group expects that the underlying profit for the first half of the 2019 year will be at least $100 million,” Virgin Australia said in a trading update issued in October 2018.
This reflected “at least a 22 per cent increase on the prior corresponding period result of $81.9 million”, Virgin said.
The $81.9 million outcome differs from the reported $102.5 million underlying profit before taxation to the first half of 2017/18 due to a changes in how in which the business has decided to recognise cash flow hedges.
Virgin Australia reported that a statutory net reduction of $681 million for the 12 months to June 30 2018, compared with a reduction of $220.3 million at the 2016/17 fiscal year, as restructuring charges, writedowns and accounting adjustments weighed on the most important thing.
But, there was a substantial improvement in profit before taxation, which removes items and was regarded as the best indication of fiscal performance.
Bryan stated a business that was powerful would be inherited by Scurrah.
Virgin Australia was due to provide its half results on Wednesday, February 13.
Scurrah appointment follows Borghetti’s announcement to step down in August 2018
In August 2018, Borghetti declared he planned to resign by the time his contract ended on January 1 2020.
Under his leadership, the airline was changed from a cheap carrier into an airline group with a full service (Virgin Australia) and cheap carrier (Tigerair Australia) arm, as well as regional and cargo operations along with also a frequent flyer program with approximately nine million members.
But, what has eluded Virgin Australia under Borghetti has been constant maturity, together with the airline group racking up losses in excess of $1 billion over the past six fiscal years.
Borghetti is credited into a diversified and full scale airline group with the transformation of Virgin Blue and incorporating competition to the Australian aviation sector.
“John has made a mark on the aviation sector as a travellers have profited because of his devotion and dedication to improving airline travel,” Bryan stated.
“The board and I are thankful for his leadership and transformation of the airline into the diversified group it is today. ”
Borghetti has spent more than four decades in aviation, with worked for 37 years where he rose to executive general manager at Qantas. After Alan Joyce was named chief executive, the aviation left the Flying Kangaroo at 2009.
He sits on the board of firm Coca-Cola Amatil while it was unsure what Borghetti & rsquo; s step is going to be. And his manager positions included being on the board of Piper Aircraft USA, The Australian Ballet, CARE Australia and Energy Australia.