British Airways Empire-Builder Willie Walsh to Stand Down
IAG CEO Willie Walsh is retiring after 15 years in charge of the British Airways owner
(Bloomberg) --
Willie Walsh, who took the helm at British Airways in 2005 and built it into the European airline giant IAG SA, will step down and be replaced by the head of the group’s Spanish unit.
Walsh, 58, will leave the CEO role and the board in March and formally retire at the end of June, IAG said Thursday. He had signaled in November he would depart within two years. Iberia chief Luis Gallego will succeed him.
A qualified pilot, Walsh faced down unions at BA to cut costs and boost earnings before leading the purchase of Iberia in 2011, establishing IAG to take on Air France-KLM and Deutsche Lufthansa AG, which had already grown through acquisitions.
IAG added Aer Lingus and no-frills units Vueling and Level, consolidating its position as one of Europe’s most profitable carriers despite competition from low-cost rivals like Norwegian Air Shuttle ASA. He agreed last year to buy Air Europa for 1 billion euros ($1.1 billion), boosting Madrid’s status as a top hub and taking IAG’s fleet beyond 600 planes.
“Willie has made IAG the success it is today, undoubtedly one of the greatest airline groups in the world,” said John Strickland, director of JLS Consulting in London. Gallego, 51, is “a solid choice” as his successor, having transformed Iberia from a carrier beset with labor strife to one of Europe’s top operators.
IAG shares rose 1.3% to 626.40 pence by 12:55 a.m. in London trading, bringing the gain over the past year to 18%.
The group’s chairman, Antonio Vazquez, said Walsh has been “the main driver of this unique idea that is IAG,” a reference to a corporate structure designed to foster acquisitions under a central holding company, avoiding the national clashes that are often a barrier to airline consolidation.
The decision to appoint Gallego means British Airways chief Alex Cruz has been overlooked for the top job. Cruz took over at the U.K. carrier in 2016, having previously been CEO at Vueling.
IAG said Thursday that it carried 118.25 million passengers in 2019, an increase of 4.7%, driven by Iberia, Level and Vueling. Capacity increased 4%, the group said.
Gallego held various positions at Spanish airlines and entered the IAG fold via Clickair, which he helped found and which was acquired by Vueling, where he became chief operating officer. He later led Iberia’s regional arm before becoming its CEO in 2013. A new head for Iberia will be announced in due course, the company said.
--With assistance from Chiara Remondini.
To contact the reporter on this story: Siddharth Philip in London at sphilip3@bloomberg.net
To contact the editors responsible for this story: Tara Patel at tpatel2@bloomberg.net, Christopher Jasper, Frank Connelly
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