VIRGIN BLUE’S replacement for its long-time boss, Brett Godfrey, could be announced as early as today, amid mounting speculation that former Qantas executive John Borghetti is the most likely heir apparent.

Several industry insiders said yesterday that Mr Borghetti was expected to become the airline’s next chief executive, though they did not rule out Andy Harrison, the boss of British no-frills airline easyJet, as an outside chance for the top job.

Mr Harrison is due to leave easyJet at the end of June.

Mr Borghetti has been pursing his own business interests – including joining the board of US aircraft manufacturer Piper Aircraft – since leaving Qantas last May, and industry insiders say he is a logical choice because of his understanding of the travel market in Australia.

The former third-in-charge at Qantas did not return calls yesterday, but he has been been rumoured to be a likely contender since the non-compete clause in his contract expired on November 1.

The announcement of a replacement will be a relief for investors and staff, who have had to endure months of uncertainty about who will chart a new course for the airline. Fortunately for Mr Godfrey’s successor, Virgin Blue appears to have largely overcome the worst of the downturn in air travel.

The airline hired executive search firm Heidrick & Struggles before Mr Godfrey publicly announced his resignation in July, and last month the board shortlisted about three candidates. Heidrick & Struggles also conducted a search for Qantas in 2008 to find a replacement for its former boss, Geoff Dixon.

Mr Godfrey, who has said he will remain at Virgin Blue until December if the need arises, has played a large role in vetting the applicants. The board is known to rely heavily on the co-founder’s extensive knowledge of the airline and the aviation market.

David Baxby, a rising star of Sir Richard Branson’s Virgin Group, is also seen as a possible candidate. But Virgin insiders have been playing down the likelihood of the former Goldman Sachs JBWere banker having an interest in the job.

Mr Baxby is a Virgin Blue director but spends most of his time managing the airline interests of Virgin Group, which has a 26 per cent stake in Australia’s second largest airline.

Virgin Blue last week posted a better-than-expected profit in the first half of $62.5 million, compared with a loss of $101 million for the same period in 2008.
Source: smh.com.au