International Airlines Group (IAG) has announced it is replacing Chief Executive of British Airways (BA), Alex Cruz as the airline navigates “the worst crisis” facing its industry.
IAG boss, Luis Gallego said the shake-up came as the company navigates “the worst crisis faced in our industry” – which has seen demand crushed by the coronavirus crisis and thousands of jobs terminated.
Alex Cruz will be replaced by Sean Doyle, who is being brought in from Irish carrier, Aer Lingus – also part of IAG.
This is one of a series of management changes announced by Mr Gallego, who took over as IAG chief executive a month ago after the retirement of Willie Walsh.
Mr Gallego said, “We’re navigating the worst crisis faced in our industry and I’m confident these internal promotions will ensure IAG is well placed to emerge in a strong position.”
He said Mr Cruz had “worked tirelessly to modernise the airline”, adding that he had also “led the airline through a particularly demanding period and has secured restructuring agreements with the vast majority of employees”.
Mr Doyle, BA’s new boss, previously worked at the airline for 20 years before moving to head Aer Lingus two years ago.
Mr Cruz will remain non-executive chairman of BA for a “transition period” before also handing over that role to Mr Doyle.
BA has been embroiled in a bitter dispute with unions over redundancies and pay cuts. In September, it revealed progress in its negotiations with unions over changes to pay and conditions as it battles to save costs.
It however reported a total of up to 13,000 were expected to lose their roles at the airline, with more than 8,000 having already gone.
BA’s handling of the restructuring drew accusations of a “despicable” fire-and-rehire approach, but Mr Cruz told MPs last month that it was on course to secure agreement with trade unions.
He also mentioned that the impact of the pandemic means it is “fighting for its survival”.
Other airlines including Manchester Airports Group – owner of Manchester, Stansted and East Midlands airports – announced plans to axe nearly 900 roles as the Treasury’s furlough scheme comes to an end.
The announcement of a government task force to look at using testing to try to reduce travellers’ quarantine periods received a half-hearted response, with no timeframe for a testing regime to be introduced.
New data from Heathrow showed the challenges being faced by the travel industry from the coronavirus pandemic. Just 1.2 million passengers travelled through the airport in September, down 82% compared with the same month last year.
Mr Cruz had a tough period in charge of BA even before the pandemic struck. In September last year, the airline’s pilots staged their first ever strike which led to 2,325 flights being cancelled and cost BA €137m (£124m).
Also, the Information Commissioner’s Office (ICO) announced it intended to fine BA a record £183m after a breach of its security system, exposing hundreds of thousands of customer details. The ICO and BA are still in discussions regarding the fine.
