On June 26, 2025, Virgin Australia took to the skies once again as it relisted on the ASX after five years off the public market. The company’s shares surged from $2. 90 to $3. 18, giving it a market capitalization of $2. 53 billion. This successful debut comes just less than five years after US private equity firm, Bain Capital, bought Virgin Australia out of voluntary administration.

According to Mike Murphy, senior partner at Bain Capital and lead for the Australian business, Virgin Australia was in a dire situation before they stepped in. The company had accumulated a debt of $5. 5 billion and was clearly unable to sustain that level of debt. Under Bain Capital’s ownership, Virgin Australia’s EBIT margin improved from 2. 9% in FY19 to 8. 5% in FY23, 9. 4% in FY24, and is expected to reach 11. 1% in FY25. The company’s adjusted net debt was reduced from $4. 25 billion to $1. 32 billion.

Bain Capital made significant investments into the airline’s people, processes, and systems to turn the business around. This included an overhaul of its technology, renegotiating fleet contracts, and enterprise bargaining agreements. The company’s fleet was reduced from 140 to 100 aircraft, and its routes were reduced from 140 to 76, resulting in a significant reduction in costs. In addition, 500 contracts were renegotiated, resulting in cost savings of more than $290 million.

Bain Capital also shut down Virgin’s low-cost carrier, Tigerair, which had been struggling since the day it was acquired. Murphy stated that the company currently has no plans to bring back Tigerair, but it may be considered in the future by the management and board.

One of the biggest challenges for Bain Capital was renegotiating leases for the fleet. This process typically takes two to three years, but they had to complete it in just two to three months during the administration period. The company’s specialist aviation finance group in New York was able to accelerate this work.

Virgin Australia staff were also given a “take-off grant” of $3,000 as a result of the IPO. There was a lot of union interaction during the administration period, and the company’s staff were also given a “take-off grant” of $3,000 as a result of the IPO.

Virgin Australia’s IPO had been rumored since 2023, but Murphy stated that the company was not ready at that time. However, after reaching various milestones, including a strategic partnership with Qatar Airways, a change in CEO, and an uptick in the broader aviation market, the timing was finally right.

Now listed, Virgin Australia has access to broader capital if needed. However, it also provides an exit strategy for Bain Capital, which retains a 30% shareholding in the company.