Economy

Alex Cruz, the CEO of British Airways, comes out as the worst crisis in aviation history begins

Sean Doyle, CEO of Irish airline Air Lingus, which is also owned by IAG, will become chief executive of British Airways with immediate effect and will also take over the position of chairman of the board of directors from Cruise after a transitional period, IAG (ICAGY) He said in a statement on Monday. Doyle worked for British Airways for two decades before moving to Air Lingus nearly two years ago.

IAG said Donal Moriarty, Aer Lingus’ chief corporate affairs officer, will become the interim CEO while a permanent replacement is found. Its stock fell as much as 2% in London on Monday before paring some of the losses.

Sean Doyle is the new CEO of British Airways.
Major airlines, including British Airways, have cut thousands of jobs and reduced their fleets in the expectation that international air travel will not recover to the level it was before the outbreak even 2024 at least. Low-cost airline EasyJet (ESYJY)Last week it said it expects to suffer its first annual loss in its 25-year history.

“Sean Doyle will stop working to make immediate progress given that British Airways faces the toughest challenge in its history as demand for international travel has decreased and quarantine restrictions continue to restrict reservations,” said Susanna Streeter, senior market analyst at Hargreaves. Lansdown, in a research note on Monday.

British Airways warned in April that it might have to cut Up to 12,000 jobsBut it has since said that about 10,000 employees – or more than a fifth of its workforce – will leave the company, the majority through voluntary layoffs. Carrier is Its fleet is fully retired Boeing 747 four years ahead of schedule. Last month, IAG shareholders, including Qatar Airways, approved A. $ 3.3 billion capital increase To help the group weather the storm.
The collapse of global air travel is putting 46 million jobs at risk

“We are facing the worst crisis our industry is facing and I am confident that these internal promotions will ensure that IAG is well positioned to emerge in a strong position,” IAG CEO Luis Gallego said in a statement on Monday.

He thanked Gallego Cruz for working “tirelessly to modernize” IAG’s flagship airline. He added, “He led the airline during a very difficult period and entered restructuring agreements with the vast majority of the employees.” Cruz, who started his career at American Airlines (AAL), Became CEO of British Airways in April 2016.

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