June 11, 2018 / 11:05 PM / 10 months ago

Virgin Australia Holdings CEO to not renew contract

(Reuters) - Virgin Australia Holdings Ltd said on Tuesday Chief Executive and Managing Director of Virgin Australia Group John Borghetti will not be renewing his contract post Jan. 1, 2020.

Australia’s second-biggest airline will start a search for a successor, it said in a statement.

The decision comes at a tumultuous time for the Brisbane-based company, with Air New Zealand ending its seven-year alliance with Virgin Australia in April, turning partners into rivals in the hotly competitive route between the two countries.

The airline also scrapped its plans to potentially go private earlier this year, fueling concerns that a major Chinese shareholder, HNA Tourism, may be about to exit.

The decision overshadowed Virgin Australia’s best underlying half-yearly profit in a decade, leading to a sharp fall in its share price.

Reporting by Aditya Soni in Bengaluru; Editing by Chris Reese and Tom Brown

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