Virgin Australia Holdings

Virgin Australia Holdings Limited is the holding company that owns and operates Virgin
Australia and Virgin Australia Regional Airlines. It previously operated Pacific Blue Airlines, Tigerair
Australia and joint-venture airline Polynesian Blue which were absorbed into Virgin Australia in
December 2011. Its head office is located in South Bank, Brisbane.[1] After being placed in
administration in April 2020, it was purchased by Bain Capital in August 2020.

History
Virgin Blue Holdings was formed in 2000 as a wholly owned subsidiary of the Virgin Group.

In 2001, the then Air New Zealand owned Ansett Australia made a buyout offer of $250 million,
which was publicly rejected by Richard Branson.[2] In 2002, Virgin came to an agreement with Patrick
Corporation to invest in the airline, to allow it to grow into a national airline, filling the void following
the demise of Ansett Australia.[3] In return for a 50% share of the company, Patrick invested
$260 million. At the time, the view was that Patrick's shareholding would also allow the company to
benefit from their new shareholder's political connections with the Howard Government, and also
'Greenwash' the company, allowing it to be described as Australian-owned.[4]

In 2003, Virgin Blue Holdings Limited was floated on the Australian Securities Exchange as Virgin
Group sought to sell down its holdings.[3]

In early 2005, Patrick launched a hostile takeover for Virgin Australia Holdings. Patrick had been
unhappy for some time with the company's direction. By the closure of the offer, Patrick held 62% of
the company, giving it control. Virgin Group retained a 25% share. In 2006, Patrick Corporation was
taken over by Toll Holdings, who maintained the ownership of shares in Virgin Blue Holdings. In
2008 the group announced a plan to distribute 98.3% of its shares in the company to its shareholders,
thus making itself no longer a majority stakeholder.[5] At the time Toll Holdings owned 62.7% of the
company and had previously attempted to sell the share to no avail.[6][7]

In January 2011, Air New Zealand purchased a 15% shareholding in Virgin Blue Holdings.[8] In June
2013 this was increased to 23%.[9] In September 2012, Etihad Airways purchased a 10% shareholding,
this was later increased to 20%. A month later Singapore Airlines bought a 10% stake in Virgin
Australia Holdings.[10] In April 2013 this was increased to 20%.[11] The same month Virgin Australia
Holdings announced it had purchased a 60% stake in Tigerair Australia with the transaction
concluded in July 2013.[12] Tiger would continue to operate as a low cost subsidiary of Virgin Australia
for 20 years.

In April 2013, Virgin Australia Holdings completed its acquisition of regional airline Skywest Airlines
and rebranded it Virgin Australia Regional Airlines.[13] In October 2014, Virgin Australia Holdings
announced plans to acquire the 40% stake of Tigerair Australia still held by Tiger Airways Holdings
for $1, giving Virgin full ownership. Virgin would retain the Tigerair name and acquire the brand
rights for Tigerair to operate to some international destinations
Virgin Australia Holdings
from Australia.[14][15] This acquisition was completed in February
Limited
2015 with tigerair becoming a fully owned subsidiary of Virgin
Australia Holdings.[16]

In March 2016, Air New Zealand announced plans to divest itself

from Virgin Australia Holdings. Air New Zealand CEO,
Christopher Luxon announced intentions to resign from the
Virgin Village, the Virgin Australia
Board of Directors for Virgin Australia. It was also announced
Holdings former head office in
that Air New Zealand were unaware of its position of whether
Bowen Hills
they were divesting all or part of their shares.[17]
Formerly Virgin Blue Holdings
Air New Zealand's partnership with Virgin Australia ceased not (2000–2011)

long after the decision to withdraw from the board and sell its Company Subsidiary
equity stake. type
Industry Aviation and tourism
In May 2016, HNA Group (part owner of Hainan Airlines),
Founded 2000
announced plans to purchase a 13% stake in Virgin Australia
Holdings, which if approved will see existing owners' shares Founders Sir Richard Branson
diluted. Air New Zealand's stake would become 22.5%, Etihad Virgin Group
would hold 21.8%, Singapore Airlines 20.1% and Virgin Group Headquarters South Bank,
8.7%.[18] A month later Air New Zealand sold 19.9% of VAH to Brisbane, Australia

Nanshan Group (majority owner of Qingdao Airlines);[19] and in Area served Oceania
October, Air New Zealand sold its remaining 2.5% of VAH to Key people Jayne Hrdlicka
Nanshan Group (majority owner of Qingdao Airlines).[20] A (CEO)
month later Virgin Australia CEO John Borghetti wrote to the Revenue A$5.83 billion (2019)
airline's pilots to reassure them the airline was in a sound Owner Bain Capital (93%)
financial position following publication of a report suggesting the Virgin Group (5%)
airline was approaching insolvency.[21][22] Queensland
Investment
In March 2020, Virgin Australia halted all flights from Corporation (2%)
international sector and in early April 2020, all domestic flights Number of 10,620 (2019)
except for some services from Sydney to Melbourne due to the employees
COVID-19 pandemic with 8,000 staff would be stood down.[23] Subsidiaries Virgin Australia
After a request for $1.4 billion loan from the Federal Government Virgin Australia
was rejected, in April 2020 Virgin Australia Holdings was placed Regional
in voluntary administration with Deloitte appointed as Velocity Frequent
administrator.[24][25] It continued to trade whilst Deloitte sought Flyer
to sell the business, with Bain Capital, BGH Capital, Cyrus Website www.virginaustralia
Capital Partners and Indigo Partners shortlisted to bid.[26] The .com (https://www.vi
rginaustralia.com)
administrator listed Bain Capital and Cyrus Capital Partners to
make final bids. On 26 June 2020, the administrators announced
that Bain Capital's bids to acquire Virgin Australia had been successful with current equity holders
being wiped out. Subject to being approved by creditors, the deal is expected to be finalised in August
2020.[27] The Queensland Government announced they had partnered with Bain Capital offering
$200 million in return for maintain the airline being in Queensland.[28] Bain's plan included reducing
the fleet size from 130 to 70-80 aircraft and shutting down the Tigerair
brand. Furthermore, they planned to return Virgin's A330's to lessors
and mothball their 777-300ER fleet until 2021. The sale was approved by
creditors on 4 September 2020.[29] In October 2020, Virgin Group and
the Queensland Investment Corporation took stakes of 5% and 2% in the
company.[30][31]

Current Head Office

Former Virgin Blue Holdings
Virgin Australia Holdings has its head office at 275 Grey St in South logo, used until December
Brisbane. It relocated here in 2020 during the Covid-19 pandemic. [32] 2011

Previous Head office

Virgin Australia Holdings had its head office in Virgin Village in Bowen Hills, Brisbane. As of 2008,
1,000 employees worked at Virgin Village.[33] The building, with about 13,220 square metres
(142,300 sq ft) A-Grade office space, was triple net leased to Virgin Blue.[34]

As the airline started operations, it decided to place its head office in the Brisbane area. Brett Godfrey,
the-then chief executive of Virgin Blue, said in 2006 that the decision "was a long considered one and
has worked well."[35] The airline originally had its head office in Fortitude Valley. The airline
purchased a $61 million site in Bowen Hills for its new head office. The firm Sunland Group, which
had acquired the Bowen Hills site for $8 million in 2005, had scheduled to complete the new head
office in March, and the airline would be ready to move into the new head office by August of the
following year.[36] The current head office facility, Virgin Village, formally opened on 17 October
2008.[37]

References
1. "Virgin Australia to exit Bowen Hills for Flight Centre's Southbank HQ" (https://www.executivetravel
ler.com/news/virgin-australia-leaves-bowen-hills-for-flight-centre-southbank-hq). Executive
Traveller. 28 July 2020. Retrieved 5 August 2020.
2. Daniel, Zoe (4 September 2001). "Virgin Blue boss jokes about buy-out deal" (http://www.abc.net.
au/pm/stories/s357900.htm). PM. Retrieved 28 July 2022.
3. Meier, Michael (26 July 2006). "Virgin Blue - Defining a New World Carrier" (https://web.archive.or
g/web/20070929080819/http://airsider.net/files/2006/0606/018/virginblue.htm). Celway Group.
Archived from the original (http://airsider.net/files/2006/0606/018/virginblue.htm) on 29 September
2007. Retrieved 22 August 2007.
4. Maiden, Malcolm (23 January 2003). "Patrick's move on Virgin Blue has a sense of déjà vu about
it" (http://www.theage.com.au/articles/2002/03/12/1015909850867.html). The Age. Retrieved
22 August 2007.
5. Virgin Blue Holdings. "Toll Announces Payment of an in Specie Dividend To Toll Shareholders,
Satisfied By Distribution of Virgin Blue Shares" (https://web.archive.org/web/20120325123944/htt
p://www.virginaustralia.com/us/en/about-us/media/2008/D_020058/). Archived from the original (ht
tp://www.virginaustralia.com/us/en/about-us/media/2008/D_020058/) on 25 March 2012.
Retrieved 18 March 2010.
 6. Stephen Mayne (14 July 2008). "Toll quits Virgin Blue, books $1.3 billion loss" (http://www.crikey.c
om.au/2008/07/14/toll-quits-virgin-blue-books-13-billion-loss/). Crikey. Retrieved 18 March 2010.
7. Giles Parkinson (14 July 2008). "Toll's Virgin Blue solution" (http://www.businessspectator.com.au/
bs.nsf/Article/Tolls-Virgin-Blue-solution-GJ2J4). Business Spectator. Retrieved 18 March 2010.
8. Georgina Bond (21 January 2011). "Air New Zealand pays $188.9 million for Virgin stake" (https://
web.archive.org/web/20160304085918/http://www.nbr.co.nz/article/air-new-zealand-pays-1889-mil
lion-virgin-stake-gb-84031). National Business Review. Archived from the original (http://www.nbr.
co.nz/article/air-new-zealand-pays-1889-million-virgin-stake-gb-84031) on 4 March 2016.
Retrieved 21 January 2010.
9. Air NZ revealed as buyer of 3pc additional Virgin stake (http://www.theaustralian.com.au/business/
aviation/air-nz-revealed-as-buyer-of-3pc-additional-virgin-stake/story-e6frg95x-1226658272262)
The Australian 6 June 2013
10. Singapore Airlines buys 10% stake in Virgin Australia (https://www.bbc.co.uk/news/business-2013
3348) BBC News 30 October 2012
11. Singapore ups Virgin stake to 20 per cent (http://www.smh.com.au/business/singapore-ups-virgin-
stake-to-20-per-cent-20130424-2idlj.html) Sydney Morning Herald 24 April 2013
12. Tiger air becomes part of Virgin (http://www.news.com.au/business/breaking-news/virgin-takes-60-
stake-in-tigerair/story-e6frfkur-1226675963848) Archived (https://web.archive.org/web/201311221
55556/http://www.news.com.au/business/breaking-news/virgin-takes-60-stake-in-tigerair/story-e6fr
fkur-1226675963848) 22 November 2013 at the Wayback Machine News.com.au 8 July 2013
13. "Media Releases | 2013" (http://www.virginaustralia.com/au/en/about-us/media/2013/VA_ACQUISI
TION_SKYWEST/). Virgin Australia. 11 April 2013.
14. "Virgin Australia pays $1 for Tigerair stake" (http://www.theaustralian.com.au/business/aviation/vir
gin-australia-pays-1-for-tigerair-stake/story-e6frg95x-1227093502559). The Australian. 17 October
2014.
15. "Virgin Australia plans full ownership of Tigerair Australia" (http://australianaviation.com.au/2014/1
0/virgin-australia-plans-full-ownership-of-tigerair-australia/). Australian Aviation. 17 October 2014.
16. "About tigerair" (https://web.archive.org/web/20181226084521/https://tigerair.com.au/tigerair-info/a
bout-tigerair). Archived from the original (https://tigerair.com.au/tigerair-info/about-tigerair) on 26
December 2018. Retrieved 5 April 2016.
17. "Air NZ set to ditch Virgin stake" (http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&obj
ectid=11614171).
18. Whitley, Angus (31 May 2016). "Billionaire Chen's HNA to Acquire Stake in Virgin Australia" (http
s://www.bloomberg.com/news/articles/2016-05-30/china-s-hna-to-buy-13-of-virgin-australia-plans-t
o-lift-stake). Bloomberg. Retrieved 5 June 2016.
19. "Air NZ sale of Virgin stake to Nanshan completed" (http://australianaviation.com.au/2016/06/air-n
z-sale-of-virgin-stake-to-nanshan-completed/). Australian Aviation. 21 June 2016.
20. "Air New Zealand sells off remaining Virgin Australia stake" (http://australianaviation.com.au/2016/
10/air-new-zealand-sells-off-remaining-virgin-australia-stake/). Australian Aviation. 14 October
2016.
21. Dobson, Paul Warner (5 November 2016). "Virgin Australia flying towards insolvency?" (http://ww
w.headlinehamster.com/2016/11/virgin-australia-flying-towards.html). Headline Hamster.
22. Bingemann, Mitchell (4 November 2016). "Virgin Australia boss John Borghetti slams analyst's
cashflow 'crisis' claim" (http://www.theaustralian.com.au/business/aviation/virgin-australia-boss-joh
n-borghetti-slams-analysts-cashflow-crisis-claim/news-story/8e8e4b188853ca7473f8e017d43548f
d). The Australian.
23. Khadem, business reporter Nassim (25 March 2020). "Virgin Australia stands down 8,000 of its
10,000 staff" (https://www.abc.net.au/news/2020-03-25/coronavirus-virgin-australia-tigerair-cut-80
00-jobs/12087910). ABC News. Retrieved 13 April 2020. {{cite news}}: |first= has generic
name (help)
24. "Virgin Australia suspends domestic flights during coronavirus crisis" (https://www.abc.net.au/new
s/2020-04-09/coronavirus-virigin-australia-suspends-domestic-flights/12139020). ABC News. 9
April 2020. Retrieved 13 April 2020.
25. Virgin Australia forced into voluntary administration, thousands of jobs at risk, after coronavirus
restrictions cripple cash flow (https://www.abc.net.au/news/2020-04-21/virgin-australia-goes-into-v
oluntary-administration-coronavirus/12167814) ABC News 21 April 2020
26. Shortlist of four suitors in the running to take over Virgin Australia (https://www.abc.net.au/news/20
20-05-18/shortlist-of-four-suitors-to-take-over-virgin-australia/12258458) ABC News 18 May 2020
27. "New owners plan to fly slimline Virgin" (https://www.afr.com/companies/transport/new-owners-pla
n-to-fly-slimline-virgin-20200626-p556iv). Australian Financial Review. 26 June 2020. Retrieved
26 June 2020.
28. "Virgin Australia HQ to remain in Brisbane under Government's $200m deal with winning airline
bidder" (https://www.abc.net.au/news/2020-06-26/queensland-virgin-australia-coronavirus-pande
mic/12397400). ABC News. 26 June 2020. Retrieved 26 June 2020.
29. Bain Capital becomes the new owner of Virgin Australia after creditors agree to $3.5 billion deal (h
ttps://www.abc.net.au/news/2020-09-04/bain-capital-new-owner-of-virgin-australia-creditors-vote-y
es/12629528) ABC News 4 September 2020
30. "Richard Branson Sticks With Virgin Australia And Buys 5% Stake" (https://simpleflying.com/virgin-
australia-richard-branson-stake/). simpleflying.com. 5 October 2020. Retrieved 5 October 2020.
31. Queensland taxpayers to get 7pc on $200m Virgin play (https://www.afr.com/companies/transport/
queensland-invests-200m-in-virgin-2-0-20201005-p5620n) Australian Financial Review 5 October
2020
32. "Virgin to shift headquarters to South Brisbane as massive job losses bite (https://www.brisbaneti
mes.com.au/national/queensland/virgin-to-shift-headquarters-to-south-brisbane-as-massive-job-lo
sses-bite-20200805-p55iss.html)." Brisbane Times. Retrieved on 21 Dec 2023.
33. "Virgin Blue seeks shelter in Brisbane" (http://www.theaustralian.com.au/business/aviation/virgin-b
lue-seeks-shelter-in-brisbane/story-e6frg95x-1111117782097). The Australian. 17 October 2008.
Retrieved 30 November 2011.
34. "Virgin Blue National Headquarters, Brisbane - new 12 year lease (http://www.joneslanglasalle.co
m.au/Australia/en-AU/Pages/Properties.aspx)." Jones Lang La Salle. Retrieved on 9 February
2010.
35. "Virgin Blue In State Of Excitement Over New Invest Queensland Campaign (http://www.virginaust
ralia.com/us/en/about-us/media/2006/D_019928/)." Virgin Blue. Monday 6 March 2006. Retrieved
on 8 February 2010.
36. Robins, Brian (31 March 2008). "Sydney chosen to be headquarters of V Australia" (http://www.sm
h.com.au/news/world/sydney-chosen-to-be-headquarters-of-v-australia/2008/03/31/12068507578
05.html). Sydney Morning Herald. Retrieved 30 November 2011.
37. "The Year That Was (http://www.edocumentview.com.au/vba/2009/1882/default.htm?voting=false#
p=20&c=2&v=1) Archived (https://web.archive.org/web/20110706103715/http://www.edocumentvi
ew.com.au/vba/2009/1882/default.htm?voting=false#p=20&c=2&v=1) 6 July 2011 at the Wayback
Machine." 2009 Virgin Blue Annual Report. Retrieved on 8 February 2010.

External links
 Official website (https://www.virginaustralia.com)

Retrieved from "https://en.wikipedia.org/w/index.php?title=Virgin_Australia_Holdings&oldid=1218809232"