Sean Doyle, CEO of the Irish airline Aer Lingus, which is also owned by IAG, will become CEO of British Airways with immediate effect and will also take over Cruz as chairman after a transitional period, IAG (ICAGIA) said in a statement on Monday. Doyle worked for British Airways for two decades before joining Aer Lingus nearly two years ago.
Donal Moriarty, CEO of corporate affairs at Aer Lingus, will become interim CEO until a permanent deputy is found, the IAG said. Its shares fell 2% in London on Monday before offsetting some losses.
Major airlines, including British Airways, have cut thousands of jobs and reduced their fleets in anticipation of international air travel not recovering to pre-pandemic levels until at least 2024. Low cost carrier EasyJet (ESYJY)said last week that he expects to suffer his first annual loss in its 25-year history.
“Sean Doyle will suspend his work to make immediate progress, given that British Airways faces the worst challenge in its history as demand for international travel has fallen and quarantine restrictions continue to limit bookings.” , Susanna Streetter, a senior market analyst at Hargreaves Lansdowne, said in a research note Monday.
British Airways warned in April that it could have to cut up to 12,000 jobs, but has since said about 10,000 employees – or more than a fifth of its workforce – will leave the company, most through redundancies. . The carrier withdrew its entire fleet of Boeing 747s four years ahead of schedule. Last month, IAG shareholders, including Qatar Airways, approved a $ 3.3 billion fundraiser to help the group weather the storm.
“We are navigating the worst crisis facing our industry, and I am confident that these internal promotions will ensure that IAG is in a good position to come out in a strong position,” IAG CEO Luis Glago said in a statement Monday.
Gallego thanks Cruz for working “tirelessly to modernize” the IAG’s leading carrier. “He has run the airline through a particularly demanding period and has secured restructuring agreements with most employees,” he added. Cruz, who began his career at american airlines (AAL), became CEO of British Airways in April 2016.