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British Airways CEO Alex Cruz to step down as industry faces its ‘worst crisis’

Oct. 12, 2020
3 min read
BRITAIN-BUSINESS-TRANSPORT-AVIATION
British Airways CEO Alex Cruz to step down as industry faces its ‘worst crisis’
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British Airways‘ CEO will step down from his role amidst the airline’s handling of the coronavirus crisis.

The airline’s owner International Airlines Group (IAG) announced the move on Monday morning that BA’s CEO Alex Cruz will step down and be replaced by current Aer Lingus CEO Sean Doyle. Cruz will remain in a non-executive capacity at the airline before Doyle takes over. It’s unclear how long the transition period will last.

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The move is the first major internal shakeup from IAG’s new Chief Executive Luis Gallego. Gallego took over for the group’s long-serving CEO Willie Walsh in September when Walsh retired. Prior to stepping in at the helm of IAG, Gallego served as the CEO of Spanish carrier Iberia — also a member of IAG.

“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,” Gallego said.

Cruz had been at the helm of British Airways since 2016. In pre-pandemic times, Cruz had faced some challenges, such as its first-ever pilot’s strike in 2019, which led to 2,325 flight cancellations, costing the airline £124 million. In 2017, the airline faced a worldwide IT outage, forcing it to cancel more than 700 flights, costing the carrier £80 million.

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During the pandemic, Cruz was at the helm when the airline announced it would be cutting 12,000 staff. The much-disputed plans, which were singled out by government officials, used a “fire and rehire” policy in order to enact pay cuts of up to 50%.

Luis Gallego talks with Alex Cruz. (Photo by DANIEL LEAL-OLIVAS/AFP via Getty Images)



Cruz’s successor Sean Doyle was the CEO Aer Lingus for nearly two years, following nearly 20 years of work at British Airways.

The move is one of a series of changes announced by IAG on Monday.

At Aer Lingus, the airline’s current chief corporate affairs officer Donal Moriarty will become the interim CEO, with a permanent appointment to be announced “in due course.”

When Doyle takes over, he will inherit a number of issues. Not only will he have to figure out how to solve the airline’s much-disputed handling of its staff contracts, but also will have to consider the airline’s future. With the coronavirus all but gone as a threat to the future of aviation, Doyle will have to be proactive about developing a plan to get passengers flying.

Last week, the U.K. government announced its long-awaited Global Travel Taskforce, which should give a much-needed lift to the travel and aviation industries. By offering a testing alternative to quarantine, industry executives believe that travelers will be more willing to travel to or from the U.K. More information is expected by November.

In July, IAG reported a loss of £3.8 billion for the first half of the year. At the time, Walsh detailed that the group didn’t expect demand to return until 2023 or 2024.

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

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  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.