The pandemic that skewered the Olympics might have helped Cyrus Capital make the final two in the race for the stricken airline.

Private equity firms hate tipping their hand publicly, but Bain’s calculated risk was welcomed by those close to the bidding process, particularly the unions, which saw Bain’s messaging around long-term support for the airline as important. Union support is likely to be crucial in the selection of the winning bidder, as the employees are the largest group of creditors by number.
But while Bain was a favourite to make it through to the final stages of bidding, Cyrus was more of a surprise.
While it has the advantage of having made profitable airline investments in the past most notably Virgin America, where it held a majority share in what was essentially a joint venture with Virgin Group founder Richard Branson its entrance to the race was a bit later than the other bidders.
And while those in the bidding process were quick to describe Freidheim as a smart and serious player with long ties to Branson, the firm’s limited on-the-ground presence in Australia seemed likely to be a disadvantage.
But the pandemic that postponed the Olympics may have worked in Cyrus’ favour by levelling the playing field somewhat.
Yes, Cyrus had to conduct its meetings by Zoom from the US. But as those close to the bidding process point out, so did every other bidder. And so the advantage a local bidder might have gained from having boots on the ground those conversations in hallways and lift lobbies that can be so important in business was blunted.
Of the vanquished, BGH will be the most disappointed and justifiably so. While one observer suggested the bids of Bain and Cyrus were less conditional than that of the Melbourne-based firm, the inclusion of AustralianSuper in BGH’s consortium would have seemed to have suggest the sort of long-term commitment Virgin needs in its current state.