Virgin Australia executives are set to meet with potential investors on Tuesday, marking the first step toward a possible relisting of the Bain Capital-owned airline, a source familiar with the matter revealed.
The airline, Australia’s second-largest, faced financial collapse in 2020 due to the severe impact of COVID-19 restrictions on the global aviation industry. However, Virgin’s executives plan to highlight the airline’s recent surge in profitability during these upcoming meetings. The source, who requested anonymity, was not authorized to speak publicly. In response to a Reuters request for comment, Virgin referred inquiries to Bain Capital, which declined to comment.
Bain Capital purchased Virgin Australia for approximately A$3.5 billion ($2.2 billion) after the airline entered administration during the early months of the pandemic. The airline’s financial struggles were exacerbated by sudden flight cancellations, which hindered its ability to service debts.
As travel demand rebounded in 2022 with the easing of most pandemic restrictions, Bain Capital began considering an Initial Public Offering (IPO). However, the firm paused its IPO preparations in 2023 due to market volatility, according to a source familiar with the matter.
On Tuesday, Virgin’s newly appointed CEO, Dave Emerson, will kick off a non-deal roadshow to meet with fund managers and discuss the airline’s future prospects.
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