Virgin Australia Holdings Limited (VBL0.F) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Peter Warne, and I am Chair of Virgin Australia. Welcome to the 2025 Annual General Meeting of the Shareholders of Virgin Australia Holdings Limited. Before the commencement of the meeting and on behalf of Virgin Australia, I would like to acknowledge the traditional custodians of the land on which we meet today, the Jagera and Turrbal people. We would like to also extend our respects to the elders past and present and to all First Nations people with us today. I note that we have a quorum necessary and I declare the meeting open. I also declare that the poll is open, and shareholders may vote or change their vote on any item of business at any time in the meeting until I declare the poll to be closed. As a matter of courtesy, I would ask everyone to ensure that their mobile phones are turned off or put on silent during the meeting. And with safety as a priority for Virgin Australia, in the unlikely event of an emergency, please follow the directions of the venue staff. Today, the meeting is being held in a hybrid format with shareholders able to attend and participate either in person or online via the Computershare meeting platform. The recording of this meeting will be available on Virgin Australia's website in due course, and I ask that this meeting not otherwise be recorded so that proceedings are not disrupted. Shareholders online can listen to our live webcast, watch our presentation, ask questions and submit votes online. Shareholders are also able to ask questions via telephone. Shareholders in the room may ask questions by moving to the microphone at the relevant time. On the stage with me today from my far left is Warwick Negus, a Non-Executive Director nominated by Virgin Group; Charles Lawson, a Non-Executive Director nominated by BC Hart; Pippa Downes, an executive Independent Non-Executive Director and Chair of the Audit, Risk, Sustainability and Compliance Committee; and Dave Emerson, our Chief Executive Officer and Managing Director. On my far right is Dimitri Courtelis, a Non-Executive Director nominated by Qatar Airways Group; Michael Murphy, a Non-Executive director nominated by BC Hart; Melinda Conrad, an independent Non-Executive Director and Chair of the Remuneration Nomination People and Culture Committee; and Susan Schneider, our Company Secretary. Ryan Cotton, a Non-Executive Director nominated by BC Hart and Chair of the Safety Committee, joins today's meeting online and via phone from the United States. The Virgin Australia executive leadership team is also in the room today. Suzanne Bell and Jason Adams, partners of KPMG, our external auditor firm are also here today to respond to any questions relating to the conduct of the audit of the 2025 financial results. Before we move on to the formal business of the meeting, I will give a short address, which will be followed by an address by Dave Emerson. It is my privilege to address you today as your Chair of Virgin Australia's inaugural AGM as an ASX-listed company post administration and to reflect on what has been a significant and transformative year for our company. Virgin Australia's ambition is to be the most loved airline in Australia by our people, our guests, their owners. This is something that we strive to deliver every day. How our company engages with its stakeholders is fundamental to building a strong reputation and the backbone of its financial success. While the aviation industry we'll continue to adapt and transform, the one thing that will never change is our inherent focus on the strategic priorities that drive value: operational performance, customer experience, employee engagement and financial returns. While our name is very familiar, we are a new business, one that has been reinvigorated through a comprehensive strategy reset to become a simpler, more resilient and more focused airline with a disciplined approach to valuation. This past year has marked a turning point for Virgin Australia as we returned to public ownership in June. We also welcomed a new Chief Executive Officer in March 2025, when the Board appointed Dave Emerson into the role after 4 years as Chief Commercial Officer. During that time, Dave is instrumental in positioning Virgin Australia as a value and choice carrier that puts customers and people first. I'm pleased to report that Dave has brought the same customer-centric focus to his leadership as CEO. Working alongside our executive leadership team and with more than 8,000 teams across the group we have continued to pursue our pursuit of being Australia's most loved airline. Welcoming Qatar Airlines Group as a strategic investor back in March was a watershed moment for the company, in Virgin Australia's history. It provided a strong foundation for our transition to public ownership. This partnership with Qatar is a testament to the strength and potential of the business you now own, one that reflects the group's significant transformation since exiting voluntary administration in November 2020. I want to take a moment to reflect on what has been accomplished since that time. Navigating the exit from administration alongside the severe disruption from a global pandemic, where flying got down to 10% of our usual schedule, was no easy feat for the Virgin Australia team. But over the sure 5 years, the airline was rebuilt as a simplified business with substantially reduced debt and a sustainable cost base. That enabled us to grow our team from 3,500 people to more than 8,000 people and invest back into the business, including by buying new aircraft, one of which was the first Embraer 190-E2 I had the privilege of flying the final leak of its delivery from Canberra to its home base in Perth in September. This transformation has been overseen by a strong and proven management team with the experience, skills and passion to continue delivering exceptional results as the business enters its next phase. Today, Virgin Australia is a strong, resilient and competitive airline benefiting our people, our investors and the millions of Australian travelers who fly with us every year. I'm pleased to report that our financial performance in FY '25 reflected the benefits of the group's on big transformation program and operational improvements. Our transformation program delivered more than $450 million in gross benefits during the year, together with savings in fuel costs, these benefits offset inflationary headwinds and continue to further expansion in our EBIT margin, with underlying EBIT margin increasing by 1.7 percentage points to 11.4%. The transformation program remains ongoing, and we expect to realize significant additional benefits in coming years. But financial metrics only tell part of the story. Our operational performance improved significantly during the financial year. Virgin Australia achieved 76.8% of flights departing on time, up 7.2 percentage points on financial year 2024, with a completion rate of 98.4%, up 2.5 percentage points on financial year '24. In the second half of financial year '25, Virgin Australia's average on-time performance rate of 82.1% and average completion rate of 98.1% with the highest of the mainline Australian domestic airlines. Customer satisfaction continues to strengthen, with our Net Promoter Score increasing 4 points on FY '24 to 27, which is as high as premium carriers, reflecting the group's commitment to delivering exceptional guest experiences. The Virgin Australia team are at the heart of this business. Every day, they bring our ambition of being the Australia's most loved airline to life by modeling our values and delivering exceptional service with signature Virgin Flair. I want to acknowledge several other contributors who have been critical to our success. First, our former CEO, Jayne Hrdlicka, for her strong leadership; the management team, my fellow directors, several of whom have guided Virgin Australia through its post administration rebuild; and others who have joined more recently and to bring fresh perspectives to our governance. Also, the team at BC Hart, whose stewardship through this transformation has been extemporary. And finally, our shareholders and partners whose continued support and confidence enable us to execute our strategy. As we look to the year ahead, we have a clear strategy, a strong balance sheet, an exceptional team and the backing of shareholders like you who believe in our vision. On behalf of the Board, we look forward to contributing to Virgin Australia's ongoing success and continuing to deliver for all our stakeholders. Thank you, and I'll now hand over to our CEO, Dave Emerson, for his address. Dave?

Thank you, Chair. Good morning, everyone. It's an honor to address you today as Managing Director and CEO of Virgin Australia. Since becoming CEO in March, I've been spending time with our people, our customers and many of you, our owners. Through these conversations, it's clear that the passion for the company and commitment to its long-term success is just as strong as when I joined 5 years ago. As part of the leadership team that implemented the company's new strategy, it was an absolute privilege to step into the CEO role when the business was performing well and with strong momentum. When I look back at FY '25, I see a year that was defined by delivery growth and an unwavering commitment to our people. We've achieved much of what we set out to do, and we've done it while staying true to our values and our ambition to be Australia's most loved airline by our people, our guests and our owners. Let me start with what's likely top of mind for many of you as shareholders. In the 2025 financial year, we delivered underlying EBIT of $664 million with an underlying EBIT margin of 11.4%. We achieved a statutory net profit after tax of $479 million. These are strong results that demonstrate the success of our transformation program. Beyond these numbers, I wanted to share with you what we've accomplished operationally because operational excellence is critical to sustained financial performance. We carried 20.7 million guests on the Virgin Australia network during the financial year. That's 20.7 million opportunities to deliver on our promise. Our completion rate remained strong across the year and our second half, our on-time performance regularly exceeded pre-COVID averages. At a time of high passenger demand, this was a solid operational result. We also relaunched long-haul flying in partnership with Qatar Airways, a significant milestone that expands our network and provides more choice for Australian travelers. I'm immensely proud that Virgin Australia won the World's Best Cabin Crew Award for the seventh consecutive year in the Airline Ratings awards. We also collected Skytrax awards for the best regional airline in Australia Pacific and the Best Airline Staff service in Australia Pacific. Virgin Australia was also recognized as the most trusted travel and tourism brand in the 2025 Roy Morgan Trusted Brand Awards for the third consecutive year, and our Reptrak score remains in the strong range. These aren't just numbers awards on the shelf. They represent thousands of interactions, thousands of moments where our people chose to go above and beyond. They represent the Virgin Flair that sets us apart. I want to acknowledge a moment that truly exemplified who we are as a company. When Rex suspended its jet operations in July 2024, Virgin Australia led the industry response with more than 135,000 disrupted Rex customers rebooked on to the Virgin network free of charge. Our people stepped up when it mattered, working around the clock to help get stranded travelers to where they needed to go. This was the right thing to do, and it showed genuine Australian spirit. We've also made significant progress on our fleet renewal program. 47 Boeing 737s underwent interior refurbishments during the year, enhancing the guest experience. We added 5 additional aircraft, bringing our total fleet count to 104, and we made the strategic decision to acquire 8 Embraer E190-E2s for our regional Virgin Australia Regional Airlines business in Western Australia, with the first delivery in September as that Car mentioned earlier. This investment in our fleet is an investment in the future of regional aviation in Western Australia. The Velocity Frequent Flyer program continues to grow in strength and value as well. Active members grew by 12% during the year, and we now have more than 80 commercial partners. Velocity is a powerful loyalty program that deepens our relationship with guests and drives repeat business. We've also progressed key sustainability partnerships, including a sustainability-focused memorandum of understanding with Qatar Airways Group. For us, sustainability means more than just environmental stewardship. It's our ability to thrive in the long term through a holistic approach that considers our impact on people, the planet and communities. So we're pleased that our Scope 1 and Scope 2 net emissions intensity in FY '25 was approximately 13% lower than our adjusted FY '19 base year and 5% lower than FY '24. With new and more efficient aircraft joining our fleet, we expect to continue reducing our net emissions intensity over the next 5 years, keeping us on track to achieve our 22% reduction target by 2030. None of this -- not the financial results, not the original performance, not the awards, not the customer service -- would be possible without our people. There are more than 8,000 team members across the Virgin Australia Group, each playing a critical role in our success. True to our values, they always step up when it matters, whether supporting disrupted customers, driving service excellence onboard our aircraft and at the airports, late nights in the hangers or making a difference in the community we serve through our community partnerships. I'm proud of the culture we've created and the Virgin Flair we bring to work every day. We've entered FY '26 with momentum, clarity of purpose and confidence. Earlier today, we provided a market update, which confirmed that trading for the 2026 financial year-to-date is in line with our expectations. We continue to experience strong demand and expect to grow domestic capacity in the first half of the 2026 financial year by 4% compared to the prior period, consistent with our guidance in August. We also provided domestic guidance for the second half of the financial year. We expect to increase 2% compared to the prior corresponding period. This equates to 3% capacity growth for the financial year, which supports expected market demand growth. Revenue per Available Seat Kilometer, or RASK, for the first half of the 2026 financial year is expected to grow by 3% to 5% compared to the prior corresponding period, consistent with guidance provided in the Prospectus and reaffirmed in August. We have a clear strategy. We have a strong market position. We have an exceptional team, and we have you, our shareholders, supporting us on this journey. Our ambition remains unchanged to be Australia's most loved airline by our people, our guests and our owners. Every decision we make, every investment we undertake, every initiative we launch, it's all in pursuit of that ambition. I look forward to delivering on our commitments and creating value for all of our stakeholders in the year ahead. Thank you.

Thank you, Dave. I'll now turn to the formal business of the meeting. Given this as a hybrid meeting, shareholders have the ability to attend either online or in person. Only shareholders, representatives and attorneys of shareholders and proxy holders attending online and those attending in person today that are holding green or blue admission cards are entitled to ask questions or vote during this meeting. Shareholders attending in person holding an orange admission card are entitled to ask questions only. For those attending in person to ask a question, please come forward to the microphone, which is in the middle here, when I invite questions at the appropriate time. When asking a question, I ask that you state your full name before asking your question. I'll also request that shareholders ask 2 questions -- only 2 questions before moving to the end of the queue to return to the microphone later to ask further questions. This will allow all shareholders an equal opportunity to ask questions. Online attendees can submit questions at any time by selecting the Q&A icon on your device, select the topic of your question relates to from the drop-down box and then type your question and press the Send button. Online attendees can also ask verbal questions by following the instructions written below the Broadcast window. Although online shareholders can submit questions at any time, I will address those questions only at the relevant time during the meeting. There will also be an opportunity following the formal business to ask general questions or comments from shareholders. If we receive multiple similar questions on any topic, they may be amalgamated together. For guests or Velocity-related concerns or complements, representatives from Virgin Australia's guest contact center are available at a dedicated service desk at the front of this room to assist. I will ask Penny Berger, General Manager, Investor Relations, to read out the questions submitted online at the appropriate time. Today, voting will be conducted by a poll on all items of business. As indicated earlier in the meeting, the poll has been opened and shareholders may vote at any time on any item of business until I declare the poll to be closed. For attendees present in the room on the reverse of your green or blue admission card is your voting paper and instructions. You'll need to follow the instructions, mark a box beside the motion on the voting paper to indicate how you wish to cast your vote and then lodge it in the ballot box before voting closes. Proxyholders here in person have attached to the green admission cards a summary of the proxy votes, which detail their voting instructions. By completing the voting paper, you will be deemed to have voted in accordance with those instructions. Shareholders who are entitled to cast any open votes will need to mark the box beside the motion to indicate how you wish to cast your open votes. For attendees online, our polling icon will appear on your device when the voting opens. Select one of the options for the relevant resolution to cast your vote. There is no need to hit a submit or enter button as the vote is automatically recorded. You may change your vote at any time until I declare that the poll is closed. As voting has opened, all attendees whether online or in person, may submit votes at any time until I declare that the poll has closed. Finally, I appoint Lewis Brimelow of Computershare Investor Services to be the returning officer and to conduct the poll for this meeting. The proxy positions for all resolutions are now shown on the screen. This is the proxy position as at 10:00 a.m. Brisbane time on Wednesday, the 12th of November 2025. This was the closing time for appointment of proxies. After discussion on each of the proposed resolutions, I'll also show the proxy position for the relevant resolution on the screen. So notice of the meeting has been sent to shareholders, and I will take it as read. We have 11 items of business to be put to the meeting today. 10 of them relate of them include resolutions requiring a vote. The items requiring a vote are the proposed resolutions set out in items 2 through 11 on the Notice of Meeting. To assist with the efficient conduct of the meeting, I declare that each of those proposed resolutions is now properly before the meeting without the need to be moved when we come to the relevant item. The first item of business concerns the receipt and consideration of the financial report, the directors' report and the auditor's report of the company for the year ended 30 June 2025. These reports are included in the company's 2025 annual report, and I present the reports to the meeting. A printed copy of the annual report was sent to those shareholders who requested a copy, and an online copy is available on our website. Copies are also available at the registration desk outside. There is no requirement to pass a resolution on this item. During this item, shareholders and their representatives may ask questions about and may make comments on the various reports and on the business operations and management of Virgin Australia. You may also ask questions of the company's auditor during this item relating to the auditor report and the conduct of the audit. I ask that questions on other agenda items be deferred until we come to those items later in the agenda. I now open Item 1 for discussion. I ask question -- I ask our shareholders who are present in the room to if they have any questions on the financial reports or the conduct of the audit. If there are no questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone line.

We have no questions online or on the phone line, Chair.

Thank you, Penny. As there are no further questions, we'll now to move to items of business, which are proposed -- the proposed resolutions to be put to a vote. The next item of business is item 2, which concerns the appointment of KPMG as the company's auditor. The company has appointed KPMG as the company's auditor. Under the Corporations Act, an auditor must be appointed at the company's first Annual General Meeting. Although the company was a listed company prior to 2020 and strictly speaking, this is not the company's first Annual General Meeting. This resolution is being put to shareholders for good order and governance. The proposed resolution and proxy positions are shown on the screen. The directors recommend shareholders vote in favor of the resolution. If voting today, please cast your vote. I ask shareholders who are present in the room if they have any questions on the appointment of KPMG as the company's auditor. As there are no questions from shareholders attending in person, I'll ask Penny again if there are any questions online or via the phone line.

We have no questions online or by the phone line. Thank you.

Thanks, Penny. As there are no further questions, we will now move to the next item of business. Items 3 through to 10 concern the election and reelection of directors. All Non-Executive directors, including me, are standing for election or reelection at today's meeting. Pippa Downes, Melinda Conrad, Charles Lawson, Dimitri Courtelis, and I are all Non-Executive directors who were appointed to the Board to fill a casual vacancy or as an addition to the Board in 2025, and are required to stand for election by shareholders at this meeting in accordance with the company's constitution. Mike Murphy and Ryan Cotton, are Non-Executive directors who are appointed to fill a casual vacancy or as an addition to the Board on the 17th of November 2020. Warwick Negus is a Non-Executive Director, who was appointed by directors on the 3rd of January 2017. Warwick was reelected by shareholders at the first Annual General Meeting following his appointment on the 8th of November 2017. The company was delisted from the ASX and converted to a proprietary company in November 2020 in accordance with the company's constitution, any director who would be in office for 3 or more years since they were last elected to office must retire. Michael, Ryan and Warwick fall within this category. In relation to my election as a director and in accordance with the company's constitution, I would like to ask Melinda Conrad to chair the meeting whilst my election is considered.

Thank you, Peter. We will now turn to item 3 on the agenda, which concerns the election of Peter Warne as a Director. The proposed resolution for Peter's election and proxy position is shown on the screen. With Peter abstaining, the directors recommend shareholders vote in favor of the resolution. If voting today, please cast your vote. Peter pointed to the Board on the 12th of March 2025 as an independent Nonexecutive Director and became share on the 6th of June 2025. He is a member of the Safety and Operational Risk Review Committee. Audit Risk Sustainability and Compliance Committee and the Remuneration, Nomination People and Culture Committee and brings great depth of experience to the Board. Some additional details on Peter are set out in the Notice of Meeting. I would now like to invite Peter to say a few words in relation to his election.

Thanks, Melinda. Ladies and gentlemen, as you may have seen from my resume, I initially trained as an actuary and then had a career in investment banking and financial markets. For the last 25 years, I've had a second career as a professional Non-Executive Director. I've been a director of a range of different organizations, large and small, in the listed private and government sectors. My involvement with Virgin Australia started early in 2023 when I commenced as a consultant to the Board. I've worked closely with the Board since that time and developed a good understanding of the company and its operations over that time. I formally joined the Board as a Non-Executive Director in March this year and was appointed Chair in June immediately before the IPO. From my first involvement with Virgin Australia, I've been incredibly impressed with the enthusiasm of everyone I've met in the Virgin team. and their passion to build a truly great company and deliver a great service to the Australian public. The corporate culture of your company typified by the Virgin Flair we talk about is something of which to be truly proud and wouldn't be the envy of any company in Australia. I'm delighted to be seeking your support for my election to the Board today. I assure you I have a really strong interest and enthusiasm for the role and have taken the time to dedicate to the task. I believe that I have the skills and experience to make a positive contribution to the operation of the Board and to the performance of the company. I respectfully ask for your support today. Thank you.

I ask shareholders who are present in the room if they have any questions on the election of Peter. If there are no further questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone online.

Yes, we've received a question from Mr. Stephen Mayne. His question is, why are all 8 directors up for election today and would Chair Peter Warne be open to continuing annual elections of directors at future AGMs, as this is best practice and mandatory in other countries such as the U.K. and U.S.? TWE and BHP, both through voluntary annual director elections, when they don't have to. So why don't we join this elite best practice group next year? Otherwise, you've got to work out which directors are also up next year for the second straight year. Just put everyone up so you don't have to have this discussion.

Okay. I'll -- well, I'll take a stab at answering it. So I think there are 2 questions in there. One is why we're up for election at once. I think as Peter commented in his speech, it's due to the timing of the IPO and the requirement for all of us to be elected at once. In response to Mr. Mayne's comment around following through with annual director elections. At the moment, that is not our company policy, but we do note his request, and we'll take that on notice.

We have another question from Mr. Stephen Mayne. Who originally invited Peter to consult to Virgin in 2023? And was it with a view to him sharing the public company down the track?

I was approached by the shareholders of an -- sorry, Virgin Australia at the time, which is primarily the Bain Capital or BC Hart. It was -- I was approached by a search consultant and was one of a number of people, which I believe were approached and went through an interview process to be appointed as a consultant at that time. It was certainly with a view to ultimately joining the Board or potentially joining the Board, of course. And the role of Chair was available, but that wasn't a guaranteed process.

Thank you, Peter. Any further questions, Penny?

We have no further questions. Thank you.

Congratulations, Peter. We will now move to the next item of business. Now that the resolution regarding Peter's election has been considered, I will ask Peter to resume the Chair of the meeting.

Thank you, Melinda. The next director standing for election is Pippa Downes. The proposed resolution for Pippa's election and proxy position is shown on the screen. With Tipper abstaining, the directors recommend shareholders vote in favor of the resolution. If voting today, please cast your vote. Pippa was appointed to the Board on the 12th of March 2025 as an independent Non-Executive Director and Chair of the Audit, Risk and Sustainability and Compliance Committee on the 6th of June 2025. Pippa is also a member of the Safety and Operational Risk Review Committee and the Remuneration, Nomination People and Culture Committee and brings a breadth of experience, notably in risk and sustainability across several industries to the Board. Some additional details on Pippa are set out in the Notice of Meeting. I would now like to welcome Pippa to address the meeting.

Thank you, Chair, and good morning, ladies and gentlemen, shareholders. Thank you for the opportunity to address our annual meeting. It is a privilege to serve as one of your directors and to seek your approval today to continue as your representative. As Peter mentioned, I have been a Nonexecutive Director of Virgin since March 2025 and served as a consultant to the company for 2 years prior to my appointment and currently serve as the Chair of the Audit Risk Sustainability and Compliance Committee. My background and expertise as set out in the notice of meeting and the annual report is focused on investments, capital markets and risk management from my time as a Managing Director at Goldman Sachs in Australia, and I bring broad industry experience across financial services, technology and property, chairing audit risk and sustainability committees. As a Director of our company, I am guided by Virgin's values and our ambition to be the most loved airline in Australia by our people, our guests and our owners as I do believe Virgin's continuing success is critical to the economy and the social infrastructure here in Australia. I feel the most important thing I can do is assist management in maintaining the financial disciplines that Virgin has implemented since coming out of administration, ensuring we are laser-focused on optimizing returns on our shareholders' capital and maintaining our cost base are critical to the future success of Virgin. I would also like to take this opportunity to thank all our executives for their hard work and dedication in what has been an extremely busy period for the management team and the business relisting on the ASX. It is the daily commitment of all our people to the importance of what we do that ensures Virgin operates to its high standards. I am very optimistic about the future of our company, and I have the time and capacity to continue to serve on your Board. I currently serve on the board of Ingenia Communities, ATI Global Holdings and I'm a member of the AustralianSuper's Investment Committee. I am dedicated to acting independently, understanding stakeholder priorities and serving with the utmost transparency and integrity. And like you, I am a shareholder of Virgin, and I'm aware of the importance of delivering sustainable shareholder returns. It would be an honor to continue to serve as a director of Virgin Australia. I humbly ask for your support to be elected as your director.

Thank you, Pippa. our shareholders who are present in the room if they have any questions on the election of Pippa. As there are no questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone line.

We have received no questions, Chair.

Thank you, Penny. We'll now move to -- congratulations, Pippa. We now move to the next item of business. The next director standing for election is Melinda Conrad. The proposed resolution for lenders election and the proxy position is shown on the screen. With Melinda abstaining, the directors recommend shareholders vote in favor of the resolution. If voting today, please cast your vote. Melinda was appointed to the Board on the 6th of June 2025 as an independent Nonexecutive Director. Melinda is Chair of the Remuneration, Nomination People and Culture Committee and is a member of the Audit Risk Sustainability and Compliance Committee and brings extensive experience in strategy, marketing and consumer-focused industries to the Board. Some details of -- on Melinda are set out in the Notice of Meeting. I'd now like to welcome Melinda to address the meeting.

Good morning, ladies and gentlemen. I'm Melinda Conrad, and I was supported to the Virgin Board in June of this year just prior to the IPO. Let me start by briefly introducing myself. I bring to this Board more than 25 years of experience across strategy, marketing and consumer focused industries. For my time as a retail entrepreneur and CEO to executive roles at Colgate-Palmolive and through my current board positions at Stockland, Ampol and the cybersecurity firm, PentenAmio. I've had the privilege of serving businesses that are critical to Australia's economy. Our financial markets infrastructure essential energy supply, technology and property and communities. I've seen firsthand what it takes to build resilient businesses that deliver sustainable value for shareholders. particularly those that play a vital role in the nation's infatuation daily life. I've served as an Australian public company director for more than 10 years, and during that time, I have developed significant experience in corporate governance practices. As Chair of the People & Culture Committee and Nominations Committees on several boards, I'm very focused on the importance of organizational culture, talent development and effective leadership succession planning. These capabilities will be directly relevant as Virgin continues to mature as a public listed company and to support its team and culture for the next phase of growth. Over the past few months, I've been deeply impressed by the passion and commitment of the Virgin team. Their focus on delivering operational excellence exceptional customer service, all while maintaining that distinctive Virgin Flair is a genuine competitive advantage. It is this combination of operational discipline and customer centricity, which will be fundamental to delivering strong shareholder returns going forward. Virgin Australia is critical to our nation's economy, connecting communities enabling business and keeping Australia moving. And as we continue this next phase, my focus will be on ensuring we maintain the operational excellence and customer experience that defines us supporting strategic initiatives that will drive sustainable growth and shareholder value and upholding the highest standards of governance as we fulfill our responsibilities as a publicly listed company. I'm committed to working alongside this exceptional management team and Board to enable Virgin Australia to continue to thrive and deliver strong returns for shareholders. Thank you for considering my election today.

Thank you, Melinda. Our shareholders who are present in the room if they have any questions on the election of Melinda. As there are no questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone line.

We have received no questions, Chair. Thank you, Penny. Congratulations, Melinda. We now move to the next item of business. The next director standing for election is Charles Lawson. The proposed resolution for child's election and the proxy position is set out on the screen. With Charles abstaining, the directors recommend shareholders vote in favor of the resolution. If voting today, please cast your vote. Charles was appointed to the Board as an alternate Non-Executive Director in November 2020. And as a Non-Executive Director on the 14th of March 2025 as a nominee of BC Hart. Charles is a member of the Audit Risk Sustainability and Compliance Committee and brings private equity, strategic and risk oversight experience to the Board. Some additional details on Charles are set out in the Notice of Meeting. I'd now like to welcome Charles to address the meeting.

Thank you, Chair. Good morning, ladies and gentlemen. As Peter referenced, I've been privileged to partner closely with Virgin Australia and its management team for the last 5 years, including as an alternate Nonexecutive Director from 2020 and as a Non-Executive Director from earlier this year. I'm very proud of the successful journey we've had over these last 5 years as stewards of Virgin Australia and in delivering a consistently safe and wonderful customer proposition at the same time as delivering strong and sustainable financial outcomes. And I'm excited for the opportunity that continues to lie in front of Virgin Australia as a public company. In addition to my role at Virgin Australia, I'm a partner at Bain Capital Private Equity and a Non-Executive Director of Estia Health. Over my career, I have developed a deep experience in capital markets and finance cost transformation and operational improvement as well as in the governance of highly regulated and capital-intensive businesses. These skills reflect a number of areas of focus for Virgin Australia and with your support as a Non-Executive Director and a member of the Audit Risk Sustainability and Compliance Committee I'm committed to continuing to uphold the highest standards of governance at Virgin Australia and using my skills to ensure that the business continues to capitalize on its potential to deliver outstanding returns for all shareholders as well as exceptional outcomes and experiences for our guests, our staff and the communities we serve. Thank you for considering my nomination.

Thank you, Charles. I ask shareholders who are present in the room if they have any questions on the election of Charles. Since there are no questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone line.

We have received no questions, Chair.

Thanks, Penny Congratulations, Charles. We now move to the next item of business. The next Director, Ryan Cotton, is standing for reelection. The proposed resolution for Ryan's reelection and proxy position is shown on the screen. With Ryan abstaining, the directors recommend shareholders vote in favor of the resolution. In voting today, please cast your vote. Ryan was appointed to the Board on the seventh of November 2020 as a Non-Executive Director and served as chair from 2020 to June 2025. As a nominee for BC Hart, Ryan is Chair of the Safety and Operational Risk Review Committee, brings deep experience in strategic investment and value creation to the Board. Some additional details on Ryan are set out in the Notice of Meeting. We will now share an address from Ryan.

Good morning, ladies and gentlemen. It has been an honor and a privilege to serve on the Board of Virgin Australia over these past 5 years, including my time as board chair until earlier this year when Peter took the role. Aviation is an industry that I'm deeply passionate about. It's complex, competitive and constantly evolving. This is also what makes it so rewarded. In partnership with management, I believe that we've built a stronger, more efficient and more disciplined airline over the last 5 years with a focus on delivering sustainable growth and shareholder value creation. The transition from a private company to a public company listed on the ASX in June this year was an important milestone of this great airline, and I remain highly energized for this next chapter. As Chair of the Safety and Operational Risk Review Committee, I am deeply committed to ensure that we maintain our unwavering focus on safety for our guests and our employees in all that we do. Above all else, safety remains our collective top priority. It's not just a standard to meet, but a responsibility we have pulled every single day. It is the bedrock of our operations, our reputation and our ongoing success. With nearly 25 years in private capital, I've harnessed those skills to help instill strong financial discipline and dynamic strategic thinking throughout the business, ensuring that every investment supports the long-term performance of Virgin Australia is focused on continuing to deliver for our customers and our team members and demands the prudent stewardship of shareholder capital. With your support, I will continue to uphold the highest standards of governance, safety and fiscal responsibility, helping to ensure Virgin Australia remains strong, trusted and positioned for enduring success in the future. Thank you very much for considering my nomination.

Thank you, Ryan. As I mentioned earlier, Ryan is joining us online and on the phone today, and we'll answer questions regarding his nomination. I ask shareholders who are present in the room if they have any questions on the reelection of Ryan. If there -- as there are no questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone line.

We have received no questions, Chair.

Thank you, Penny. Congratulations, Ryan. We now move to the next item of business. The next director standing for reelection is Michael Murphy. The proposed resolution for Michael's reelection and the proxy position is shown on the screen. With Michael abstaining, the directors recommend shareholders vote in favor of the resolution. If voting today, please cast your vote. Michael was appointed to the Board on the 17th of November 2020 as a Non-Executive Director as a nominee for BC Heart. Michael is a member of the Remuneration, Nomination People and Culture Committee and brings over a decade of experience in private equity and corporate strategy to the Board. Some additional details and Michael are set out in the Notice of Meeting. I'd now like to welcome Michael to address the meeting.

Thank you, Chair, and good morning, ladies and gentlemen. My name is Michael Murphy, and it's also been my privilege to serve on the board of Virgin Australia for the past 5 years. as a senior partner of Bain Capital, I was part of the leadership team that guided our investment into Virgin Australia during that challenging period of covered and voluntary administration in 2020. Over the past 5 years, I've worked very closely with my fellow directors and Virgin's executive leadership team to reposition the airline for long-term sustainable growth and a long-term sustainable future. Part of my governance responsibilities has included chairing the Audit and Risk Committee since 2020 until earlier this year when Pippa Downes took over this responsibility. I'm also currently a member of the Remuneration, Nomination and People and Culture Committee. Outside of Virgin Australia, I currently chair the Board of Estia Health, a leading aged care provider that Bank Capital took private off the ASX in 2023. In the past, I've served as a Chair or Board member of 10 different organizations in a broad range of industries. I thank you for considering and supporting my nomination today. Thank you.

Thank you, Michael. Our shareholders who are present in the room today if they have any questions on the reelection of Michael. As there are no questions from shareholders attending in person, I ask Penny if there are any questions online or via the phone line.

Yes, Chair. We've received several questions from Stephen Maine. So I'll do them in 2 sections. Could Michael Murphy please comment on whether the 3 Bain representatives on the Board caucused before Board meetings to take agreed Bain positions into the meeting? Which of the 3 Bain nominees would be regarded as the leader of the group?

Michael, would you like to respond to that question?

Well, I thank Stephen Maine for the question. To start with, I don't think we have a rank order of Bain Capital nominees. We each take our fiduciary responsibilities as directors to Virgin Australia seriously and have very independent minds.

And as Chair of the Board for the -- certainly the last 6 months, I'd have to concur that I haven't seen any causing of the -- or group positions taken by the BC Hart nominees on the Board.

Mr. Mayne's further questions are, also, could Michael comment on whether Bain prefers to receive returns from dividends or share sales? If Virgin generates franking credits, would they be of use to Bain? In other words, does Bain have a different tax incentive to Australian resident retail shareholders when it comes to capital management and dividends?

Once again, thanks, Stephen, for the question. Frankly, it's not something we've really considered in any detail at this stage. So that's probably all down the track.

There are no further questions, Chair.