It’s over the former Japan co-chief’s new role with rival Virgin Australia
Qantas has taken one of its former top executives to the NSW Supreme Court after he accepted a new role with rival airline Virgin Australia. The airline wants to force ex Jetstar Japan co-chief Nick Rohrlach to honour his six month non-compete clause before taking the new role as head of Virgin Australia’s loyalty program.
Qantas claims that while being onboarded for the role late last year, Rohrlach was privy to sensitive information regarding Qantas’ own frequent flyer scheme which could be used to exploit the airline once he joins Virgin.
“Mr Rohrlach had accepted a senior role in Qantas Loyalty and had received highly sensitive information in preparation for starting in that role. All of this was happening as Virgin negotiated to recruit him,” Qantas told the AFR. “This matter is disappointing at best.
“At no point after negotiations between Mr Rohrlach and Virgin began, and right up until he informed Qantas of his new role at Velocity, was it suggested that the flow of information from Qantas should cease.”
Read more: Qantas posts $1.08 billion half-year loss
Rohrlach’s appointment to CEO of Velocity was announced by Virgin in January among a handful of C-suite announcements. Rohrlach has a six-month gardening leave clause in his contract, as well as a three-month notice period, the newspaper reported. He was due to start at Virgin in May, but if Qantas wins in court, that date will be pushed back until September.
In a statement provided to HRD, a spokesperson for Virgin confirmed Rohrlach has also filed proceedings in Singapore, the jurisdiction of which any disputes around his employment contract should be heard. He is seeking a declaration from the court that any attempted restraint by Qantas is unenforceable.
“As is appropriate with matters before the court, Virgin will put its evidence and arguments to the court under a court mandated timetable,” the spokesperson told HRD.
“We are disappointed that Qantas has chosen to criticise us the way they have in a media statement while court proceedings are on foot in relation to this matter, and categorically deny that we have been anything but proper and appropriate in Mr Rohrlach’s recruitment. We are confident our position will be vindicated in court.
“It’s nice the dominant market player is finally recognising it has competition, but it’s disappointing that they have chosen to attack us rather than get on with the job at hand.”
Read more: Qantas wins landmark case over temporary layoffs
A direction hearing for the case took place in front of Justice James Stevenson on Tuesday.
