British Airways CEO Alex Cruz to step down as industry faces its ‘worst crisis’
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.
Sign up to receive the daily TPG newsletter for more airline and travel news
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.
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%.
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.
Top offers from our partners
How we chose these cards
TPG featured card
Rewards
6X | 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program. |
4X | 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping. |
2X | 2x points on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
The Marriott Bonvoy Business Amex is a stacked card with a rewards rate that will help you earn bonus points on everyday and business-related purchases. You'll earn 15 elite night credits each calendar year, and receive automatic Gold elite status. Finally, the free night award certificate with a redemption level of 35,000 points or less can get you hundreds of dollars in potential value each year.Pros
- 6 points per dollar on eligible purchases at hotels participating in the Marriott Bonvoy program
- 4 points per dollar at restaurants worldwide, U.S. gas stations, wireless telephone services purchased directly from U.S. service providers and U.S. shipping
- 2 points per dollar on all other eligible purchases
- Earn a free-night award each card renewal month (up to 35,000 points)
- Receive 15 elite night credits to jump-start status
- Transfer Marriott points to 40+ airlines
Cons
- Airline points transfer ratios are poor
- Must spend $60,000 in a year for second free-night award
- Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.
- Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Terms and Conditions Apply.
- 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program.
- 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
- 2x points on all other eligible purchases.
- Receive 1 Free Night Award every year after your Card renewal month. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy® points) at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees.
- Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card.
- Terms apply.
Rewards Rate
6X | 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program. |
4X | 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping. |
2X | 2x points on all other eligible purchases. |
Intro Offer
Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.Earn 125,000 points75,000 pointsAnnual Fee
$125Recommended Credit
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.670-850Excellent/Good
Why We Chose It
The Marriott Bonvoy Business Amex is a stacked card with a rewards rate that will help you earn bonus points on everyday and business-related purchases. You'll earn 15 elite night credits each calendar year, and receive automatic Gold elite status. Finally, the free night award certificate with a redemption level of 35,000 points or less can get you hundreds of dollars in potential value each year.Pros
- 6 points per dollar on eligible purchases at hotels participating in the Marriott Bonvoy program
- 4 points per dollar at restaurants worldwide, U.S. gas stations, wireless telephone services purchased directly from U.S. service providers and U.S. shipping
- 2 points per dollar on all other eligible purchases
- Earn a free-night award each card renewal month (up to 35,000 points)
- Receive 15 elite night credits to jump-start status
- Transfer Marriott points to 40+ airlines
Cons
- Airline points transfer ratios are poor
- Must spend $60,000 in a year for second free-night award
- Limited Time Offer: Earn 125,000 Bonus Marriott Bonvoy Points after you use your new Card to make $5,000 in purchases within the first 3 months of Card Membership. Offer ends 5/3/23.
- Receive a 7% discount off standard rates for reservations of standard guest rooms at hotels that participate in the Marriott Bonvoy program when you book directly. Terms and Conditions Apply.
- 6x Marriott Bonvoy Points on each dollar of eligible purchases at hotels participating in the Marriott Bonvoy® program.
- 4x points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping.
- 2x points on all other eligible purchases.
- Receive 1 Free Night Award every year after your Card renewal month. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy® points) at hotels participating in Marriott Bonvoy®. Certain hotels have resort fees.
- Enjoy Complimentary Marriott Bonvoy Gold Elite Status with your Card.
- Terms apply.