“We were talking to the government I think as all the airlines were – about an industry package, and very much for the government to support the entire industry and not to pick winners or losers,” he told the program.
“It is a moral hazard,” he went on. “People are very reluctant. A lot of companies, a lot of business leaders are very uncomfortable with the government getting involved in industries to an individual company level, sector-wide, industry-wide, is something that we all support.” Then, turbulence hit. As COVID-19 swept the world, demand for travel took a nosedive before stock prices soon followed.
Qantas CEO Alan Joyce has defending his public remarks about urging the government not to bail out Virgin, saying doing so would have been a “moral hazard”. Weighed down by seven consecutive years of annual losses, and failing to receive a bailout from the federal government, Virgin CEO Paul Scurrah had entered uncharted territory with a multi-billion dollar cloud over his head.“It is the biggest crisis the airline industry’s ever seen,” he said.
Asked about Mr Joyce’s comments, Mr Scurrah said he’s “always admired Alan’s fighting spirit”, but that one would “have to ask him” why he made those public remarks.“We were asking for an ostensibly Australian company, that did have foreign ownership, to be rescued and possibly taken back into Australian ownership, through the mechanism we were talking about. We were asking for something that was repayable, and that we could find a way to repay.
It wasn’t until June 26 that Virgin Australia was thrown a lifeline, with American private equity giant Bain Capital taking on the airline as its new owner.
Perhaps Virgin's brand owner shouldn't have led the way on the kind of remarks.
Majority foreign owned entities can get bailed out by ...... perhaps foreigners? The job loss is a concern, but if there’s a genuine need for a 2nd carrier one will emerge.
Don’t like Joyce at all
What a nerve ..... so it’s ok for you to ask for the help hahahahhaa Sell assets and reduce your wages first mate to show your for real
It's extremely hypocritical of Alan Joyce to talk about the moral hazard of a government bailout of VirginAustralia while he is Australia's most well remunerated executive as a result of leading Qantas which itself is insolvent and dependent on government subsidies.
Doesn't Virgin have multiple private buyers in a bidding war? I'm confused. Why do they even need government intervention?
“Moral hazard” hello pot this is kettle. Didn’t you just spend millions of qantas dollars on your own personal agenda with the same sex marriage debate. Did you ask all share holders for approval? That’s a moral hazard.
In other words, it would have been totally fine to bail out Virgin if Qantas was also getting bailed out.
He’s right. You have to admire the CEO of qantas- a virgin handout would of been very unfair when qantas didn’t get the same. Plays hard does Joyce, passionate about qantas and makes very smart business decisions..
Alan Joyce? 🤮🤮🤮!!!
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