Virgin Australia
Brisbane, Australia
Industry: Aviation
Region: Australia 🇦🇺
Founded: 2000
Expected Valuation: N/A
IPO Date: 2023 (expected)
Virgin Australia Holdings Ltd.
Key Company Facts
| Founded | 2000 |
| Headquarters | South Bank, Brisbane, AU |
| Sector | Transportation |
| Industry | Airlines |
| Founders | Richard Branson, Brett Godfrey |
| Number of employees | 5,000 - 10,000 |
| IPO Date | November 2023 |
| Number of investors | 5 |
| Total funding | $1.1 billion USD |
| Number of account holders | 12,000,000 |
| Valuation estimate | $1 billion USD |
Company Overview & History
Virgin Australia, an Australian airline founded on August 29, 2000, initially operated as Virgin Blue before commencing operations under its current name on May 4, 2011.
The airline’s hubs are located in Brisbane, Melbourne, and Sydney, with focus cities including Adelaide, Alice Springs, Gold Coast, and Perth. With 83 aircraft in its fleet, Virgin Australia services 37 destinations.
The company is headquartered in South Bank, Brisbane, Queensland, Australia. Key figures in the company include Jayne Hrdlicka (CEO), Richard Branson (co-founder), and Brett Godfrey (co-founder and former CEO)
Financial Performance
Virgin Australia has seen considerable financial turbulence in recent years, culminating in voluntary administration in 2020. Following this, private equity firm Bain Capital took ownership, significantly restructuring the company’s finances, including writing off $4.4 billion in debt2.
The company has since seen a rebound, with a revenue surge in the first half of the 2023 financial year to $2.5 billion, resulting in the company’s first full-year profit in a decade
Revenue
| Year | Revenue (AUD) |
|---|---|
| 2019 | $3.1 billion |
| 2018 | $3.0 billion |
| 2017 | $2.6 billion |
Business Model
Virgin Australia operates as a mid-market airline, providing services to a range of domestic and international destinations. It has a frequent-flyer program called Velocity, enhancing customer loyalty and encouraging repeat business. The company also has subsidiaries, such as Virgin Australia Regional Airlines, that extend its reach and services.
Estimated Valuation
| Year | Valuation (AUD) |
|---|---|
| 2020 | $1 billion |
Risk Factors
As with all airlines, Virgin Australia faces numerous risk factors. These include fuel cost volatility, regulatory changes, economic downturns impacting travel demand, and unforeseen circumstances like the COVID-19 pandemic that greatly affected the entire airline industry.
Further risks include competition from other airlines and potential future financial instability.
Market Opportunity
Virgin Australia has potential market opportunities through the ongoing recovery of the travel sector following the COVID-19 pandemic.
There is also the opportunity to capitalize on its positioning as a mid-market airline, potentially attracting customers from both low-cost and high-end airlines.
Additionally, Virgin Australia is planning to relist through an initial public offering (IPO), potentially providing the company with further capital to pursue growth opportunities
Competitors
- Qantas Airways
- Regional Express Airlines
- Air New Zealand
- Tigerair Australia
- Alliance Airlines
- Fly Corporate
- Skytrans Airlines