1 00:00:03,470 --> 00:00:06,240 Sean Aylmer: Welcome to the Fear and Greed Daily Interview. I'm Sean Aylmer. 2 00:00:06,790 --> 00:00:09,490 Sean Aylmer: The pandemic hit the travel sector harder than most. With 3 00:00:09,490 --> 00:00:13,470 Sean Aylmer: borders closed and all travel stopping almost instantly, the impact 4 00:00:13,510 --> 00:00:17,010 Sean Aylmer: on Virgin Australia was particularly severe. In April last year, 5 00:00:17,010 --> 00:00:21,239 Sean Aylmer: the airline entered voluntary administration owing almost $7 billion to 6 00:00:21,239 --> 00:00:24,670 Sean Aylmer: more than 12, 000 creditors. It then became the first airline 7 00:00:24,670 --> 00:00:28,450 Sean Aylmer: in Australian history to exit voluntary administration following its sale 8 00:00:28,450 --> 00:00:32,250 Sean Aylmer: to Bain Capital. Now as state and international borders reopen, 9 00:00:32,250 --> 00:00:35,440 Sean Aylmer: the challenge will be to re-establish the airline's place in 10 00:00:35,440 --> 00:00:40,050 Sean Aylmer: an extremely competitive industry. Jayne Hrdlicka took over as Chief 11 00:00:40,050 --> 00:00:42,769 Sean Aylmer: Executive of Virgin Australia in November last year and is 12 00:00:42,770 --> 00:00:44,949 Sean Aylmer: my guest this morning. Jayne, welcome to Fear and Greed. 13 00:00:45,450 --> 00:00:47,239 Jayne Hrdlicka: Thanks, it's a pleasure to be here this morning. 14 00:00:47,630 --> 00:00:50,050 Sean Aylmer: So how have you done it, Jayne? How have you handled 15 00:00:50,050 --> 00:00:53,020 Sean Aylmer: the last 12 months? Wow, what a crazy time. 16 00:00:53,360 --> 00:00:57,730 Jayne Hrdlicka: Well look, Sean, it has been a crazy time and 17 00:00:57,940 --> 00:01:00,540 Jayne Hrdlicka: it's been a crazy time for everybody in Australia. So 18 00:01:00,750 --> 00:01:05,990 Jayne Hrdlicka: we've all been working through the implications of border closures 19 00:01:05,990 --> 00:01:11,089 Jayne Hrdlicka: and implications of lockdowns in various communities. It's been up 20 00:01:11,090 --> 00:01:14,270 Jayne Hrdlicka: and down for everyone, and so it has impacted our 21 00:01:14,270 --> 00:01:16,869 Jayne Hrdlicka: industry more than most. But it has been up and 22 00:01:16,870 --> 00:01:19,100 Jayne Hrdlicka: down for everyone, and we're just super conscious of that. 23 00:01:19,690 --> 00:01:22,770 Jayne Hrdlicka: It's been tough on our people, frankly, because of the 24 00:01:22,770 --> 00:01:27,400 Jayne Hrdlicka: uncertainty and we were all looking really good around Easter, 25 00:01:27,400 --> 00:01:31,100 Jayne Hrdlicka: and then by July, it was looking pretty difficult again. 26 00:01:32,209 --> 00:01:34,369 Jayne Hrdlicka: If I look back on the last 12 months, Sean, 27 00:01:34,370 --> 00:01:38,300 Jayne Hrdlicka: I'd say it's been really tough for Australia and it's 28 00:01:38,300 --> 00:01:41,790 Jayne Hrdlicka: been really tough for aviation and the tourism sector generally. 29 00:01:42,750 --> 00:01:45,480 Jayne Hrdlicka: For us as a business, however, it's been a great 30 00:01:45,480 --> 00:01:49,770 Jayne Hrdlicka: opportunity to just stay really focused on all the transformation 31 00:01:49,770 --> 00:01:53,280 Jayne Hrdlicka: work we're doing to ensure that we are very competitive 32 00:01:53,280 --> 00:01:57,840 Jayne Hrdlicka: as we start flying again in December. And we are 33 00:01:58,140 --> 00:02:01,210 Jayne Hrdlicka: in a position to remind Australians what they love about 34 00:02:01,210 --> 00:02:05,460 Jayne Hrdlicka: Virgin Australia and work hard to get our market share 35 00:02:05,460 --> 00:02:08,630 Jayne Hrdlicka: position back at roughly 33% of the domestic market. 36 00:02:09,060 --> 00:02:10,870 Sean Aylmer: Okay, so just before we get onto that. As a 37 00:02:10,870 --> 00:02:15,370 Sean Aylmer: CEO, though, running a business, which was hit so hard 38 00:02:15,370 --> 00:02:18,930 Sean Aylmer: by the pandemic, personally, what was it that you came 39 00:02:18,930 --> 00:02:21,540 Sean Aylmer: to work every day? What were you thinking about? In 40 00:02:21,540 --> 00:02:24,340 Sean Aylmer: your mindset, was it getting through the day? Was it 41 00:02:24,340 --> 00:02:26,820 Sean Aylmer: actually the people? What was it that you really focused on? 42 00:02:27,530 --> 00:02:30,190 Jayne Hrdlicka: Well, look, it's a few things. One is people because 43 00:02:30,250 --> 00:02:32,360 Jayne Hrdlicka: our business, at the end of the day, is about 44 00:02:32,360 --> 00:02:38,100 Jayne Hrdlicka: people, and so making sure that everybody was really positive 45 00:02:38,100 --> 00:02:41,910 Jayne Hrdlicka: about the future and focused on what everybody could do 46 00:02:41,910 --> 00:02:45,579 Jayne Hrdlicka: each day to make a difference in rebuilding the airline, 47 00:02:45,580 --> 00:02:49,940 Jayne Hrdlicka: rebuilding the business, and planning for a really exciting future 48 00:02:50,060 --> 00:02:54,040 Jayne Hrdlicka: was really super important to me. That's job one, and 49 00:02:54,040 --> 00:02:56,130 Jayne Hrdlicka: job two is making sure that we were really clear 50 00:02:56,280 --> 00:02:59,150 Jayne Hrdlicka: about the things that mattered and we had a good game plan 51 00:02:59,150 --> 00:03:01,480 Jayne Hrdlicka: and everybody knew how they fit into that so that 52 00:03:01,480 --> 00:03:04,299 Jayne Hrdlicka: they could put their focus on the things that they 53 00:03:04,360 --> 00:03:08,210 Jayne Hrdlicka: individually could do to make a difference. That really helps 54 00:03:08,210 --> 00:03:11,279 Jayne Hrdlicka: because if you know where the business is headed and 55 00:03:11,280 --> 00:03:13,380 Jayne Hrdlicka: you know how you fit in and you know what 56 00:03:13,380 --> 00:03:15,660 Jayne Hrdlicka: you can do every day to make a difference, then 57 00:03:15,660 --> 00:03:18,410 Jayne Hrdlicka: it helps mute the noise in the background and all 58 00:03:18,410 --> 00:03:22,950 Jayne Hrdlicka: the uncertainty that comes with that noise just to keep your head focused 59 00:03:22,950 --> 00:03:23,930 Jayne Hrdlicka: and stay positive. 60 00:03:24,400 --> 00:03:26,579 Sean Aylmer: Okay, so as we talk about your efforts to get 61 00:03:26,580 --> 00:03:30,169 Sean Aylmer: back to that 33% goal, as you just mentioned, let's 62 00:03:30,169 --> 00:03:32,990 Sean Aylmer: take a few, state borders, the consistency around state borders, 63 00:03:32,990 --> 00:03:35,809 Sean Aylmer: how important is that at the moment? I know that 64 00:03:35,810 --> 00:03:38,560 Sean Aylmer: you have previously spoken about how difficult it is to 65 00:03:38,970 --> 00:03:41,190 Sean Aylmer: manage when you're not quite sure what's going to happen 66 00:03:41,190 --> 00:03:41,910 Sean Aylmer: state by state. 67 00:03:42,240 --> 00:03:45,420 Jayne Hrdlicka: We've all gotten really good at managing uncertainty, and I think 68 00:03:45,420 --> 00:03:48,330 Jayne Hrdlicka: the reality is that we will be really good at 69 00:03:48,330 --> 00:03:53,020 Jayne Hrdlicka: managing uncertainty forever now. While we would love to have 70 00:03:53,070 --> 00:03:55,760 Jayne Hrdlicka: a clear game plan with absolute certainty that it will 71 00:03:55,760 --> 00:04:00,230 Jayne Hrdlicka: be delivered, we know that's not realistic. And appropriately so because, 72 00:04:00,230 --> 00:04:03,730 Jayne Hrdlicka: as a country, we're managing now to transition to a 73 00:04:03,730 --> 00:04:05,320 Jayne Hrdlicka: world where we learn to live with COVID in the 74 00:04:05,320 --> 00:04:08,530 Jayne Hrdlicka: community and that's just going to have some wild card 75 00:04:08,530 --> 00:04:12,820 Jayne Hrdlicka: events that nobody can anticipate. So we'll have to continue 76 00:04:12,840 --> 00:04:15,930 Jayne Hrdlicka: to stay flexible, we'll have to continue to adjust state 77 00:04:15,930 --> 00:04:19,010 Jayne Hrdlicka: by state as is necessary and appropriate. But the very 78 00:04:19,010 --> 00:04:21,590 Jayne Hrdlicka: positive thing is that the direction of travel is open 79 00:04:21,970 --> 00:04:25,400 Jayne Hrdlicka: and all state premieres are talking about the circumstances in 80 00:04:25,400 --> 00:04:28,349 Jayne Hrdlicka: which they're going to be open, and it's in the 81 00:04:28,350 --> 00:04:32,410 Jayne Hrdlicka: community's hands. It's all about the vaccination rates, it's all 82 00:04:32,410 --> 00:04:35,810 Jayne Hrdlicka: about protecting the vulnerable in the community. And so we 83 00:04:35,810 --> 00:04:39,040 Jayne Hrdlicka: each have the opportunity to make a difference in ensuring 84 00:04:39,040 --> 00:04:41,710 Jayne Hrdlicka: that we get back to a more stable environment where we 85 00:04:41,710 --> 00:04:44,770 Jayne Hrdlicka: can all return to the lifestyles that we love. They 86 00:04:44,770 --> 00:04:47,310 Jayne Hrdlicka: give us the freedom to travel this country, to see 87 00:04:47,310 --> 00:04:49,409 Jayne Hrdlicka: our friends, to see our family, to see the people 88 00:04:49,410 --> 00:04:51,890 Jayne Hrdlicka: that mean something to us in our lives, and to 89 00:04:51,890 --> 00:04:54,010 Jayne Hrdlicka: be able to do that whenever we feel like it, 90 00:04:54,600 --> 00:04:57,570 Jayne Hrdlicka: and to plan. We're really looking forward to that, and 91 00:04:57,570 --> 00:04:59,820 Jayne Hrdlicka: I think the reality for us has been that we 92 00:04:59,820 --> 00:05:02,470 Jayne Hrdlicka: just have to learn to live with the uncertainty and 93 00:05:02,740 --> 00:05:05,640 Jayne Hrdlicka: not to fight it, and to accept the fact that 94 00:05:05,700 --> 00:05:09,460 Jayne Hrdlicka: we have to adjust and correct course when that's appropriate 95 00:05:09,460 --> 00:05:10,370 Jayne Hrdlicka: to protect the community. 96 00:05:11,020 --> 00:05:15,260 Sean Aylmer: How's the process of rejigging the airline in terms of 97 00:05:15,510 --> 00:05:17,790 Sean Aylmer: getting planes back in the air, getting staff back on? 98 00:05:17,790 --> 00:05:20,349 Sean Aylmer: Have you been able to retain enough staff? Is there 99 00:05:20,450 --> 00:05:22,870 Sean Aylmer: retraining going on at moment? How's all that working? 100 00:05:23,410 --> 00:05:27,460 Jayne Hrdlicka: Well, it's working really well. In July, we looked forward 101 00:05:27,460 --> 00:05:30,989 Jayne Hrdlicka: and thought, gee, pretty confident that December and January Australia 102 00:05:31,010 --> 00:05:33,930 Jayne Hrdlicka: will be open because it'll have been two years since 103 00:05:33,930 --> 00:05:38,070 Jayne Hrdlicka: the pandemic started. It's really important for Australia to get reunited, 104 00:05:38,510 --> 00:05:41,779 Jayne Hrdlicka: and the emotion is building with people not being able 105 00:05:41,779 --> 00:05:44,109 Jayne Hrdlicka: to connect with family and friends and people they love. 106 00:05:45,040 --> 00:05:47,529 Jayne Hrdlicka: We banked on the fact that December and January would 107 00:05:47,529 --> 00:05:51,369 Jayne Hrdlicka: be Australia's reopening, and we have worked hard to keep 108 00:05:51,370 --> 00:05:55,270 Jayne Hrdlicka: all of our pilots current. We've flown empty planes to 109 00:05:55,270 --> 00:05:58,589 Jayne Hrdlicka: ensure that they had enough hours, and we have kept 110 00:05:58,589 --> 00:06:01,810 Jayne Hrdlicka: everybody kind of warmed up to come back to work 111 00:06:01,810 --> 00:06:05,130 Jayne Hrdlicka: and we've worked hard to keep everybody connected emotionally to 112 00:06:05,130 --> 00:06:07,890 Jayne Hrdlicka: the business as they've been stood down, if that was 113 00:06:07,890 --> 00:06:13,500 Jayne Hrdlicka: their circumstance. We start standing back up in November with 114 00:06:13,500 --> 00:06:16,300 Jayne Hrdlicka: a lot of positive energy, Sean, and people are really 115 00:06:16,300 --> 00:06:20,529 Jayne Hrdlicka: excited to get back to work. December and January, we're 116 00:06:20,529 --> 00:06:23,080 Jayne Hrdlicka: hiring in addition to bringing people back to work because 117 00:06:23,080 --> 00:06:25,299 Jayne Hrdlicka: we have new aircraft coming in and we're growing. So 118 00:06:26,260 --> 00:06:29,589 Jayne Hrdlicka: it's a really positive story. We're getting everybody back to work. 119 00:06:29,800 --> 00:06:32,820 Jayne Hrdlicka: We're bringing more members into the team. We're not having 120 00:06:32,820 --> 00:06:37,279 Jayne Hrdlicka: any difficulty in hiring new people into the company, and 121 00:06:37,600 --> 00:06:39,510 Jayne Hrdlicka: so it's actually quite a positive outlook. 122 00:06:40,029 --> 00:06:42,050 Sean Aylmer: Okay, stay with me, Jayne. We'll be back in a 123 00:06:42,050 --> 00:06:42,180 Sean Aylmer: minute. 124 00:06:47,430 --> 00:06:51,580 Sean Aylmer: I'm speaking to Jayne Hrdlicka, CEO of Virgin Australia. Tell 125 00:06:51,580 --> 00:06:54,409 Sean Aylmer: us about new Virgin Australia, what we can expect? Because 126 00:06:54,410 --> 00:06:57,370 Sean Aylmer: most of us haven't been on a Virgin flight since 127 00:06:57,800 --> 00:07:00,930 Sean Aylmer: they went through voluntary administration. I mean, what position does 128 00:07:00,930 --> 00:07:03,300 Sean Aylmer: it occupy at the moment and how different will it 129 00:07:03,300 --> 00:07:04,810 Sean Aylmer: be next time I jump on a plane? 130 00:07:05,400 --> 00:07:08,900 Jayne Hrdlicka: Well, Virgin Australia won't feel that different to most people. 131 00:07:09,000 --> 00:07:11,790 Jayne Hrdlicka: The most important part of Virgin Australia has always been 132 00:07:11,790 --> 00:07:16,410 Jayne Hrdlicka: our people, has always been their passion to serve and 133 00:07:16,410 --> 00:07:19,970 Jayne Hrdlicka: make a difference in our guests' lives. And make sure 134 00:07:19,970 --> 00:07:22,200 Jayne Hrdlicka: that the experience that they have flying with us is 135 00:07:22,280 --> 00:07:25,610 Jayne Hrdlicka: a special one. Nothing's changed with respect to that. In 136 00:07:25,610 --> 00:07:28,620 Jayne Hrdlicka: fact, there's a lot more passion, a lot more energy 137 00:07:28,620 --> 00:07:31,090 Jayne Hrdlicka: than there's ever been with people just really excited to 138 00:07:31,090 --> 00:07:34,520 Jayne Hrdlicka: welcome our guests back. That's the core of the core for 139 00:07:34,520 --> 00:07:37,500 Jayne Hrdlicka: us. Then on top of that, our guests can expect 140 00:07:37,500 --> 00:07:42,300 Jayne Hrdlicka: from us extraordinary value. We have our lounges, we have 141 00:07:42,330 --> 00:07:45,630 Jayne Hrdlicka: our frequent flyer program, we have the most number of 142 00:07:45,630 --> 00:07:50,239 Jayne Hrdlicka: seating options that you can find in Australia, economy, extra 143 00:07:50,240 --> 00:07:53,350 Jayne Hrdlicka: leg room economy, business class. You can buy a seat 144 00:07:53,350 --> 00:07:55,830 Jayne Hrdlicka: with only a bag if you'd like. We've just created 145 00:07:55,830 --> 00:07:59,520 Jayne Hrdlicka: an environment with lots of choice and great value for 146 00:07:59,520 --> 00:08:02,790 Jayne Hrdlicka: every one of those choices. That's what you can count 147 00:08:02,790 --> 00:08:06,110 Jayne Hrdlicka: on from Virgin Australia. Amazing service and unbelievable value. 148 00:08:06,670 --> 00:08:09,410 Sean Aylmer: It's a very competitive market, and we've spoken a lot 149 00:08:09,410 --> 00:08:11,300 Sean Aylmer: about that obviously with a very big player in the 150 00:08:11,300 --> 00:08:15,020 Sean Aylmer: market, but also some new players as well, particularly, in the Sydney- 151 00:08:15,020 --> 00:08:18,110 Sean Aylmer: Melbourne route. What do you think will happen around prices? 152 00:08:18,640 --> 00:08:22,780 Jayne Hrdlicka: Oh, I think we're, as an industry, rebuilding consumer interest 153 00:08:22,780 --> 00:08:26,210 Jayne Hrdlicka: and travel. I think prices are going to be really sharp 154 00:08:26,210 --> 00:08:30,840 Jayne Hrdlicka: for some time to come, and the entire tourism sector 155 00:08:30,840 --> 00:08:33,070 Jayne Hrdlicka: has a job to do in rebuilding demand to certain 156 00:08:33,070 --> 00:08:38,609 Jayne Hrdlicka: destinations and making sure that our guests love being out 157 00:08:38,610 --> 00:08:41,660 Jayne Hrdlicka: and travelling again. I do think prices are going to 158 00:08:41,660 --> 00:08:45,140 Jayne Hrdlicka: be great for some time, and I do think the 159 00:08:45,140 --> 00:08:48,209 Jayne Hrdlicka: entire tourism ecosystem's going to work pretty hard to ensure 160 00:08:48,210 --> 00:08:50,729 Jayne Hrdlicka: that not only do you have a great experience this trip, 161 00:08:50,730 --> 00:08:52,179 Jayne Hrdlicka: but you're going to want to take the next one 162 00:08:52,179 --> 00:08:55,050 Jayne Hrdlicka: as soon as possible. I think it's going to be a 163 00:08:55,050 --> 00:08:57,760 Jayne Hrdlicka: great time for consumers. They'll be spoilt for choice, they'll 164 00:08:57,760 --> 00:09:02,010 Jayne Hrdlicka: have lots of opportunity to travel because it's going to be very affordable 165 00:09:02,290 --> 00:09:04,429 Jayne Hrdlicka: and that's fantastic. It's just what the industry needs, it's 166 00:09:04,429 --> 00:09:07,189 Jayne Hrdlicka: what the Australian economy needs, and it's good for everyone. 167 00:09:07,540 --> 00:09:11,600 Sean Aylmer: What about your goals in terms of domestic share and international share? 168 00:09:12,340 --> 00:09:15,990 Jayne Hrdlicka: Well, our domestic share goal is clear, and that's 33%, 169 00:09:16,240 --> 00:09:19,640 Jayne Hrdlicka: and that is important we think to serve both our 170 00:09:19,640 --> 00:09:24,980 Jayne Hrdlicka: business and our leisure travel needs for our guests. That's 171 00:09:25,240 --> 00:09:29,510 Jayne Hrdlicka: sacrosanct. Then international, we will have both the short haul 172 00:09:29,510 --> 00:09:33,910 Jayne Hrdlicka: international network that serves the most popular destinations like Fiji 173 00:09:33,910 --> 00:09:38,439 Jayne Hrdlicka: and Bali and New Zealand, and we'll also be building 174 00:09:38,980 --> 00:09:42,410 Jayne Hrdlicka: an international long haul network with our partners and doing 175 00:09:42,410 --> 00:09:46,130 Jayne Hrdlicka: some creative things there to ensure that the world is 176 00:09:46,130 --> 00:09:50,230 Jayne Hrdlicka: available to Virgin Australia's guests. And the members of our 177 00:09:50,230 --> 00:09:54,520 Jayne Hrdlicka: frequent flyer program, Velocity, will have every option to go 178 00:09:54,520 --> 00:09:56,870 Jayne Hrdlicka: and explore the world off the back of the points 179 00:09:56,870 --> 00:09:58,890 Jayne Hrdlicka: that they've earned through a variety of different mechanisms in 180 00:09:58,929 --> 00:09:59,241 Jayne Hrdlicka: the program. 181 00:09:59,241 --> 00:10:03,080 Sean Aylmer: I wanted to mention Velocity, how important has Velocity Frequent Flyer 182 00:10:03,080 --> 00:10:07,020 Sean Aylmer: program been during the last 18 months in terms of 183 00:10:07,020 --> 00:10:08,830 Sean Aylmer: just keeping in touch even with people? 184 00:10:09,490 --> 00:10:12,260 Jayne Hrdlicka: Oh, look, Velocity's been really important. It's been an important 185 00:10:12,270 --> 00:10:15,960 Jayne Hrdlicka: part of the Virgin Australia group for a long time. 186 00:10:16,470 --> 00:10:18,520 Jayne Hrdlicka: But it's never been more important than the last couple 187 00:10:18,520 --> 00:10:21,900 Jayne Hrdlicka: of years where it's so helpful to be able to 188 00:10:21,900 --> 00:10:24,270 Jayne Hrdlicka: be in contact with your guests even though they're not 189 00:10:24,270 --> 00:10:29,670 Jayne Hrdlicka: flying. And finding ways to encourage engagement and add value 190 00:10:29,730 --> 00:10:34,540 Jayne Hrdlicka: and thank them for their loyalty and commitment to us 191 00:10:34,540 --> 00:10:38,600 Jayne Hrdlicka: over the years has been a really important opportunity for 192 00:10:38,600 --> 00:10:43,410 Jayne Hrdlicka: us and we've appreciated the gift that our loyalty program 193 00:10:43,410 --> 00:10:44,710 Jayne Hrdlicka: brings as a consequence of that. 194 00:10:45,190 --> 00:10:47,650 Sean Aylmer: Okay. You also mentioned buying new planes, is that right? 195 00:10:47,809 --> 00:10:49,540 Sean Aylmer: Are they lower emissions planes? 196 00:10:50,120 --> 00:10:52,760 Jayne Hrdlicka: Yes. Well, we have a mix of aircraft in our fleet. 197 00:10:52,760 --> 00:10:56,890 Jayne Hrdlicka: We've got orders in for the new MAX fleet in the 198 00:10:56,960 --> 00:11:00,750 Jayne Hrdlicka: 737 family, and that is lower emissions aircraft, roughly 8% 199 00:11:01,280 --> 00:11:04,929 Jayne Hrdlicka: less fuel burn. The aircraft that are coming in right 200 00:11:04,929 --> 00:11:08,689 Jayne Hrdlicka: now are part of the existing 737 family, so the 201 00:11:10,110 --> 00:11:13,479 Jayne Hrdlicka: 737NG family. And that is as a consequence of just 202 00:11:13,480 --> 00:11:16,830 Jayne Hrdlicka: availability in getting aircraft capacity in as fast as we 203 00:11:16,830 --> 00:11:20,910 Jayne Hrdlicka: possibly can. The MAX aircraft start to arrive in 2023, 204 00:11:21,100 --> 00:11:24,229 Jayne Hrdlicka: and we've got new aircraft arriving to enable us to 205 00:11:24,350 --> 00:11:27,370 Jayne Hrdlicka: deliver on our 33% domestic market share and to deliver on 206 00:11:27,370 --> 00:11:31,390 Jayne Hrdlicka: our short haul international ambitions and to appropriately serve the 207 00:11:31,390 --> 00:11:32,680 Jayne Hrdlicka: broader Australian market. 208 00:11:33,360 --> 00:11:35,620 Sean Aylmer: Do you have an emissions reduction target? 209 00:11:36,260 --> 00:11:41,150 Jayne Hrdlicka: We are very committed to net zero carbon emissions by 210 00:11:41,190 --> 00:11:45,380 Jayne Hrdlicka: 2050 as is the aviation industry. As a company, we've 211 00:11:45,380 --> 00:11:48,870 Jayne Hrdlicka: been very focused on sustainable aviation fuels as a part 212 00:11:48,870 --> 00:11:53,130 Jayne Hrdlicka: of the solution for some time. In 2018, we were 213 00:11:53,130 --> 00:11:56,280 Jayne Hrdlicka: the first Australian airline to fly in Australia with sustainable 214 00:11:56,280 --> 00:12:00,660 Jayne Hrdlicka: aviation fuels and that was a really important marker for 215 00:12:00,920 --> 00:12:07,160 Jayne Hrdlicka: us. But the solution is a solution that requires not only 216 00:12:07,160 --> 00:12:10,750 Jayne Hrdlicka: change to the fuel source that we use, but also 217 00:12:10,750 --> 00:12:14,890 Jayne Hrdlicka: continuing to invest in next year generation aircraft that burn 218 00:12:15,100 --> 00:12:17,809 Jayne Hrdlicka: less fuel to make sure that everything we do on 219 00:12:17,809 --> 00:12:20,900 Jayne Hrdlicka: the ground is as carbon efficient as it can be. 220 00:12:21,179 --> 00:12:24,330 Jayne Hrdlicka: To look at creative ways to offset because there will 221 00:12:24,330 --> 00:12:26,780 Jayne Hrdlicka: probably always be a residual that we are stuck with 222 00:12:27,070 --> 00:12:29,319 Jayne Hrdlicka: given the nature of our industry. There are lots of 223 00:12:29,320 --> 00:12:31,860 Jayne Hrdlicka: different levers, Sean, that we need to focus on to 224 00:12:31,860 --> 00:12:35,260 Jayne Hrdlicka: ensure not only that we deliver by 2050 on net 225 00:12:35,260 --> 00:12:37,780 Jayne Hrdlicka: zero, but that we're on a really strong path and 226 00:12:37,780 --> 00:12:39,630 Jayne Hrdlicka: we can start to see a difference over the course 227 00:12:39,630 --> 00:12:40,309 Jayne Hrdlicka: of the next decade. 228 00:12:40,730 --> 00:12:42,910 Sean Aylmer: Jayne, you've been in the job for 12 months. Have you 229 00:12:42,910 --> 00:12:45,699 Sean Aylmer: enjoyed it? Has it been what you thought it would be? Has it been harder? 230 00:12:46,500 --> 00:12:49,790 Jayne Hrdlicka: Well, look, it's been more fun and harder than I 231 00:12:49,790 --> 00:12:50,271 Jayne Hrdlicka: could possibly imagine. 232 00:12:50,271 --> 00:12:51,730 Sean Aylmer: Probably good. That's probably good. 233 00:12:51,780 --> 00:12:55,199 Jayne Hrdlicka: Yeah, look, it's actually been great. This is such a 234 00:12:55,200 --> 00:13:00,800 Jayne Hrdlicka: phenomenal company with a special brand that we all feel 235 00:13:00,800 --> 00:13:04,010 Jayne Hrdlicka: strongly about making sure that it has a legacy for 236 00:13:04,010 --> 00:13:06,929 Jayne Hrdlicka: decades to come. We feel very privileged to have the 237 00:13:06,929 --> 00:13:10,660 Jayne Hrdlicka: opportunity to work at Virgin Australia. We have an amazing 238 00:13:10,660 --> 00:13:13,520 Jayne Hrdlicka: team from the frontline all the way through the business, 239 00:13:13,580 --> 00:13:16,730 Jayne Hrdlicka: and the culture is a very special culture that both 240 00:13:16,730 --> 00:13:19,530 Jayne Hrdlicka: Richard Branson and Brett Godfrey in the very beginning of 241 00:13:19,530 --> 00:13:22,170 Jayne Hrdlicka: our history as a company worked hard to establish. We're 242 00:13:23,190 --> 00:13:26,160 Jayne Hrdlicka: working hard now to ensure that we are feeding and 243 00:13:26,160 --> 00:13:30,010 Jayne Hrdlicka: watering the culture, and we are investing to ensure that 244 00:13:30,010 --> 00:13:32,410 Jayne Hrdlicka: every new person who comes into the company is a 245 00:13:32,410 --> 00:13:34,270 Jayne Hrdlicka: really important part of that culture and helps keep it 246 00:13:34,270 --> 00:13:35,130 Jayne Hrdlicka: alive and strong. 247 00:13:35,580 --> 00:13:37,790 Sean Aylmer: Has it been easier not being listed? 248 00:13:38,380 --> 00:13:41,689 Jayne Hrdlicka: A lot easier not being listed because we're just focused 249 00:13:41,690 --> 00:13:45,160 Jayne Hrdlicka: on making sure that we get the business rebuilt as 250 00:13:45,160 --> 00:13:48,450 Jayne Hrdlicka: fast as we can. That we get costs out and 251 00:13:48,450 --> 00:13:50,809 Jayne Hrdlicka: get our unit costs down to a very competitive position 252 00:13:51,070 --> 00:13:55,929 Jayne Hrdlicka: and improving the customer experience every single day and investing 253 00:13:56,030 --> 00:14:00,120 Jayne Hrdlicka: in technology. We're able to invest at a time when 254 00:14:00,120 --> 00:14:05,110 Jayne Hrdlicka: revenue was very thin, and we don't have the same challenges of 255 00:14:05,110 --> 00:14:07,990 Jayne Hrdlicka: trying to meet market obligations, etc. We're just focused on 256 00:14:07,990 --> 00:14:10,809 Jayne Hrdlicka: building a great business for the long- term. And Bain 257 00:14:10,809 --> 00:14:14,750 Jayne Hrdlicka: Capital have been fantastic partners for us and have ensured 258 00:14:14,750 --> 00:14:16,970 Jayne Hrdlicka: that we have the investment capital that we need to 259 00:14:16,970 --> 00:14:20,010 Jayne Hrdlicka: catch up on some things that we've just fallen behind on, 260 00:14:20,410 --> 00:14:24,610 Jayne Hrdlicka: and to deliver pretty fast paced transformation, which we're really 261 00:14:24,610 --> 00:14:25,020 Jayne Hrdlicka: grateful for. 262 00:14:25,800 --> 00:14:29,040 Sean Aylmer: Yeah, and I think we travellers love the fact that we have a competitive 263 00:14:29,040 --> 00:14:31,410 Sean Aylmer: airline industry because it wouldn't be good for us if 264 00:14:31,410 --> 00:14:34,080 Sean Aylmer: we didn't. Now, Jayne, I just want to mention, you're also 265 00:14:34,080 --> 00:14:36,530 Sean Aylmer: Chair of Tennis Australia. Clearly, you don't mind a fight 266 00:14:36,530 --> 00:14:40,120 Sean Aylmer: because the current stance on player vaccinations is causing lots 267 00:14:40,120 --> 00:14:43,210 Sean Aylmer: of news and that's only a couple of months away. How 268 00:14:43,210 --> 00:14:46,560 Sean Aylmer: do you handle really big job? I mean, I don't know how you handle one job 269 00:14:46,560 --> 00:14:49,700 Sean Aylmer: as CEO, but also chairing Tennis Australia, and particularly around 270 00:14:49,700 --> 00:14:51,360 Sean Aylmer: this time of the year where it's such a big issue? 271 00:14:51,530 --> 00:14:52,220 Sean Aylmer: How do you do it all? 272 00:14:53,080 --> 00:14:58,110 Jayne Hrdlicka: Well, look, Tennis Australia is an extraordinary organisation and we're 273 00:14:58,110 --> 00:15:02,520 Jayne Hrdlicka: led by a very capable and exceptional CEO in Craig Tiley, 274 00:15:02,560 --> 00:15:05,190 Jayne Hrdlicka: and that makes all the difference as a chair. If 275 00:15:05,190 --> 00:15:08,910 Jayne Hrdlicka: you've got a very strong CEO and a very strong 276 00:15:08,910 --> 00:15:13,810 Jayne Hrdlicka: board and a great leadership team that sits underneath the CEO, 277 00:15:14,530 --> 00:15:18,040 Jayne Hrdlicka: it's actually a team effort and it means that it's 278 00:15:18,040 --> 00:15:23,370 Jayne Hrdlicka: very manageable. I love the relationship that I have with 279 00:15:23,370 --> 00:15:26,300 Jayne Hrdlicka: Craig Tiley, and we've got a board that works really 280 00:15:26,300 --> 00:15:30,900 Jayne Hrdlicka: collaboratively in support of our strategy and navigating through some 281 00:15:30,900 --> 00:15:34,400 Jayne Hrdlicka: of these really tough issues. So it's actually a lot 282 00:15:34,400 --> 00:15:38,680 Jayne Hrdlicka: of fun. I find it a nice compliment to my 283 00:15:38,680 --> 00:15:42,170 Jayne Hrdlicka: day job, which is obviously tough. There's quite a lot 284 00:15:42,170 --> 00:15:46,440 Jayne Hrdlicka: of synergy between the two because both of my passion 285 00:15:46,440 --> 00:15:51,420 Jayne Hrdlicka: businesses are dependent upon borders being open and working closely 286 00:15:51,420 --> 00:15:55,280 Jayne Hrdlicka: with state and federal governments and making sure that we are 287 00:15:55,570 --> 00:15:58,979 Jayne Hrdlicka: supporting the community in every way we can while also delivering 288 00:15:59,040 --> 00:16:03,130 Jayne Hrdlicka: on our organisational ambitions. I find it a really positive 289 00:16:03,210 --> 00:16:05,410 Jayne Hrdlicka: experience and great synergy, frankly. 290 00:16:05,950 --> 00:16:07,660 Sean Aylmer: Well, Jayne, thank you very much for talking to us. 291 00:16:07,660 --> 00:16:09,720 Sean Aylmer: Good luck with Virgin Australia. I hope you do achieve 292 00:16:09,720 --> 00:16:12,660 Sean Aylmer: your goal in that 33% and, certainly, I hope the summer 293 00:16:12,670 --> 00:16:15,680 Sean Aylmer: of tennis is as exciting as it normally is. 294 00:16:16,080 --> 00:16:17,710 Jayne Hrdlicka: Thank you very much, and I promise that it will be. 295 00:16:18,830 --> 00:16:22,620 Sean Aylmer: That was Jayne Hrdlicka, Chief Executive Officer of Virgin Australia. 296 00:16:22,680 --> 00:16:24,920 Sean Aylmer: This is the Fear and Greed Daily Interview. Join me 297 00:16:24,920 --> 00:16:27,410 Sean Aylmer: every morning for the full Fear and Greed podcast with 298 00:16:27,410 --> 00:16:29,580 Sean Aylmer: all the business news you need to know. I'm Sean 299 00:16:29,580 --> 00:16:30,960 Sean Aylmer: Aylmer, enjoy your day.