Chairman of the Virgin Australia Group Elizabeth Bryan said: "The Board and I are grateful to John for providing a generous period of time for the search for the CEO and an appropriate transition of leadership. The Board will now commence a global search for a successor while John will remain focused on leading the Group".
"I would like to acknowledge John's enormous contribution to the Virgin Australia Group to date and thank him for his continued dedication," Ms Bryan added.
Mr Borghetti said: "It is a privilege to serve as CEO of the Virgin Australia Group and to lead a wonderful team of 10,000 people. By notifying the board of my intentions now, it provides them with appropriate time to conduct a thorough recruitment process and for me to support the transition".
"In the interim, I look forward to continuing in the role of CEO and I remain focused on delivering the goals of the Virgin Australia Group," Mr Borghetti added.
The announcement comes shortly after, Air New Zealand decided it would not to extend its codeshare alliance with Virgin Australia, and will let the agreement lapse from 27-Oct-2018. Air New Zealand then announced a new codeshare partnership with Virgin Australia competitor Qantas, which will commence 28-Oct-2018.