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Borghetti

David French | 16/11/2012 9:27:54 AM

This article was originally published as 'Borghetti' in http://www.themorningbulletin.com.au/ on 14 July 2012.

Borghetti

Its 10 years since VirginBlue started flying into Rockhampton. Over that decade we have had, at various times, up to four airlines, offering a range of routes, service and price that surprises many. Two airlines that pulled out, but not because of lack of demand - Tiger had itself by the tail, and Jetstar (which is a Qantas subsidiary) was effectively competing with itself. Currently, Rockhampton has the 12th busiest airport in the country. Up from 16th in 2009/10, that's saying something - especially considering that 8 of the initial 11 places are taken up by state and territory capitals.

This observation has not been lost on John Borghetti, the CEO of Virgin Australia who presented at a "Leaders Series" lunch hosted by Capricorn Enterprise. Starting in the mailroom of a major airline, Borghetti offers an interesting melding of the best Latino features (passionate, engaging, visionary), with a fair dose of protestant work ethic. Since the GST, times have changed. People are now less about party, and more about preservation. With prices under pressure, it's all about productivity (the love affair with "P words" - had it ever since the pimps and prostitutes party!).

How do you deal with that? Many would say cut heads. Sometimes that is unavoidable, but few CEO's do it for fun, and instead Borghetti has embarked on an ambitious plan to change the product that is Virgin, to get the most out of his airline. He is supported (in my experience) by staff that for the most part really believe they belong to something bigger than just a job. That's a priceless Branson/Godfrey legacy.

Borghetti and his team have some innovative plans for our region. Already Virgin runs direct services to Sydney - the place where most corporate decisions are made. The flights to Townsville are quick, and comfortable (before them it was easier to go to Melbourne than to North Queensland). The frequency to Brisbane is excellent. The revamped cabins, and crew-wear are classy and the staff are on the look-out to make the time in the air memorable - for me it's about using that quiet time well. New planes, and routes are in the offing.

Despite being in the middle of a boom, our community desperately needs positive corporate influences. Without any disrespect to Qantas Link - community support for the initiatives of Virgin Australia can only be good for us.

The Investment Collective (AFSL 471728) is a non-aligned financial planning and investment firm specialising in providing tailored financial and investment advice for individuals and small business. Capricorn Investment Partners Limited's services include financial planning, share trading, portfolio management, insurance broking and self managed super fund administration. Additional information on services provided by The Investment Collective Limited can be found by following this link. Readers are reminded that this document has been prepared for general information purposes only, and any advice contained herein has been prepared without taking into account your financial objectives, situation or needs. Readers are advised to see their financial advisor prior to acting on any general advice.




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