Interview: Virgin Australia CEO on Seats, Innovation and the Chinese Market
Photo Credit: Under CEO John Borghetti (center), Virgin Australia expects to expand into China. Virgin Australia
Skift Take
Few airlines focus as much on passenger experience as Virgin Australia. But unfortunately for investors, that approach has not produced recent profits.
Future of Passenger Experience
To better understand the challenges facing airlines in an age of fluctuating oil prices, rapid growth, and changing passenger expectations, our Future of Passenger Experience series will allow leaders in the industry to explain their best practices and insights.Virgin Australia CEO John Borghetti is a survivor.
Earlier this year, Air New Zealand, then one of Virgin Australia's key shareholders, tried to remove Borghetti. Air New Zealand CEO Christopher Luxon argued Virgin Australia should bring in another leader to stem the carrier's losses, according to local media reports.
But the board sided with Borghetti, allowing him to stay. Borghetti then helped find a new buyer for most of Air New Zealand's stake, with Chinese conglomerate Nanshan Group buying roughly 20 percent of Virgin Australia. Nanshan is the second large Chinese investor to buy a stake in Virgin Australia this year, joining HNA Group, owner of Hainan Airlines, which in May said it would buy 13 percent. The two Chinese firms join Etihad Aviation Group and Singapore Airlines as major investors in Virgin Australia.
The capital infusion means Borghetti should have more time to turn around Virgin Australia, w
