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Regular-article-logo Friday, 03 May 2024

British Airways replaces CEO as part of shake-up

The airlines was particularly hard hit during the pandemic because travelers from most countries are required to quarantine themselves for 14 days after arrival

New York Times News Service London Published 13.10.20, 05:18 AM
Alex Cruz

Alex Cruz Sourced by The Telegraph

British Airways has replaced CEO Alex Cruz after more than four years on the job as part of a broad shake-up as the Covid-19 pandemic pummels airlines around the world.

International Airlines Group, British Airways’ parent company, on Monday named Sean Doyle, previously the boss of Aer Lingus, another carrier in the group, as BA’s new chief executive. Cruz will remain non-executive chairman during an unspecified transition period.

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BA’s passenger traffic dropped 95 per cent from a year earlier in the second quarter, leading to a first-half operating loss of 4.04 billion euros ($4.77 billion). In recent months, unions have criticised the way Cruz handled 12,000 job cuts linked to the pandemic.

The shakeup comes just a month after Luis Gallego became CEO of IAG, promising to shore up the group’s finances and adapt to the “new normal” of air travel during the pandemic.

Gallego led a cost-cutting drive at Iberia Airlines after it merged with British Airways to create IAG. He replaced long-time CEO Willie Walsh.

Airlines around the world have seen passenger numbers plummet amid government-imposed travel restrictions and concerns about the safety of air travel during the pandemic.

British airlines have been particularly hard hit because travelers from most countries are required to quarantine themselves for 14 days after arrival, killing off most business and holiday travel.

“This is a sign that the new chief executive of IAG, Luis Gallego, is flexing his muscles and trying to demonstrate he’ll make the changes necessary to lead a sustained recovery for the airline group,” said Susannah Streeter, a market analyst at Hargreaves Lansdown.

“Sean Doyle will have his work cut out to make immediate progress given that British Airways is facing the toughest challenge in its history as demand for international travel has plummeted and quarantine restrictions continue to constrain bookings.”

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