BA’s chief heads for the departure lounge
He’s axed after 4 years of turbulence at flag carrier
THE chief executive of British Airways is stepping down following a turbulent four years in charge of the nation’s flag carrier.
Alex Cruz, 54, who has been with BA since April 2016, has been ousted as part of a shake-up to help the airline navigate the worst crisis in its history.
During his time in charge, BA has suffered major IT failures, customer data leaks and highly damaging pilot strikes.
The airline has also faced criticisms for cost- cutting measures, including the decision to replace free food and drink with buy-on-board menus on shorthaul economy flights.
The changes have been blamed for denting the prestigious BA brand, putting it on a par with low- cost budget airlines. Mr Cruz’s tenure culminated in MPs branding the airline a ‘national disgrace’ for its treatment of 12,000 staff laid off during the pandemic.
BA’s parent company, the International Airlines Group, said Mr Cruz will be replaced by Sean Doyle, the boss of Irish airline Aer Lingus, another IAG business.
Brian Strutton, general secretary of pilots’ union Balpa, said yesterday: ‘I hope this heralds a new dawn which sees BA behaving like the proud flag carrier airline it should be.
‘Mr Cruz has been in the departure lounge for some time. He was given a remit to cut costs and found it impossible to do that without alienating BA passengers and employees alike.’
IAG chief executive Luis Gallego thanked Mr Cruz for ‘modernising’ the airline, adding: ‘He has led the airline through a particularly demanding period and has secured restructuring agreements with the vast majority of employees.’
Last month, Spanish-born and American- educated Mr Cruz told the Commons transport committee that BA is ‘fighting for our own survival’. However, the committee accused him of presiding over ‘ the wanton destruction of a loyal workforce’ by laying off a quarter of staff while drastically reducing the pay and benefits of those that do survive the cull.
Under the so-called ‘fire and rehire’ policy, long-serving staff were facing cuts of up to 70 per cent. However, in a climbdown last month Mr Cruz said staff would not be issued with new contracts on reduced terms.
Coronavirus has left BA operating around a quarter of its schedule and burning through around £20million every day.
Mr Cruz will remain at BA as non- executive chairman for a transition period until Mr Doyle also takes on his role.
Nadine Houghton, of the GMB union, said: ‘Alex Cruz presided over the worst attack on BA employees in the history of the company. He is now the scapegoat for BA’s catastrophic threat of fire and rehire.’
‘Alienated staff and passengers’