SYDNEY, Oct 15 (Reuters) - Virgin Australia Holdings Ltd
Chief Executive Paul Scurrah is negotiating the terms
of his exit with the airline's new owner Bain Capital, two
people familiar with the matter told Reuters.
Local media reports said Scurrah had clashed with Bain about
the strategy for Australia's second-biggest airline and was
trying to steer it away from becoming a budget carrier.
On Wednesday, a major employee union said it had suspended
bargaining talks with the Brisbane-based airline, pending
clarification on Scurrah's status.
The people, who were not authorised to speak with media,
told Reuters that Scurrah's exit was expected to be announced
Bain still plans to keep Virgin's lounges and business-class
offering in contrast to reports that it would become a budget
carrier, though not as premium a level as that desired by
Scurrah, one of the people said.
The Sydney Morning Herald on Wednesday evening first
reported the exit talks.
Virgin and Bain declined to comment.
Reuters was not immediately able to reach Scurrah for
comment. He said on Wednesday he was not in the habit of
commenting on speculation when asked about rumours he would be
replaced, according to The Australian Financial Review.
Australian Services Union Assistant National Secretary
Emeline Gaske said in a statement she was deeply concerned with
the reports Bain was reneging on its commitment to keep Virgin a
full-service airline supporting a workforce of 6,000.
(Reporting by Jamie Freed; Editing by Lisa Shumaker)