LONDON -- British
Airways picked former Aer Lingus CEO Willie Walsh to become its new
CEO later this year but said Walsh wont be replicating his work at
Aer Lingus, which he transformed into a low-fare carrier by
slashing costs and eliminating frills.
Willie was
determined that Aer Lingus had to provide what its customers
demanded and that was a low price for an air ticket, said British
Airways Chairman Martin Broughton in announcing the
move.
At British
Airways, he will focus his efforts and energies on what our
customer base demands, which is quality service and value for
money.
A British Airways
spokesman added, We are a full-service operation, and we plan to
continue on that path.
However, the
Guardian, a British newspaper, reported in early February that
British Airways was reviewing its short-haul product, which has
been unable to break even.
The airline made
a pretax profit of $145 million in the first quarter, a 60% decline
from $245 million a year earlier, and blamed the decline in part on
a 47% increase in fuel costs.
Walsh will join
British Airways as chief executive designate on May 3.
Current CEO Rod
Eddington will retire at the end of September, at which time Walsh
will become CEO.
Walsh on Jan. 28
resigned from Aer Lingus, along with the airlines next two highest
ranking executives, in what was reported to be a dispute with the
Irish government over future strategies for the airline.
Before then,
however, Walsh and his colleagues were widely credited for rescuing
the Dublin-based carrier, which saw its existence threatened, in
large part, by the popularity of hometown rival and European
low-fare juggernaut Ryanair.
Walsh slashed the
work force, emphasized Web sales and ditched business class on
short-haul routes after deciding it didnt bring in enough revenue
to justify the expense.
The British
Airways appointment is just another step in a storybook rise for
Walsh, 43, a native of Ireland who joined Aer Lingus as a
17-year-old cadet pilot in 1979.
Walsh worked
through the ranks to become a captain in 1990.
He became CEO of
Futura, Aer Lingus charter airline in Spain, in 1998, and returned
to Aer Lingus as COO in 2000. He was named CEO in the aftermath of
9/11.
Eddington,
previously chairman of Ansett Australia, took the reins at British
Airways in May 2000.
He guided the
airline through 9/11, the Iraq War and new competition from a flood
of European low-cost airlines.
Eddington, 55, is
expected to return to his native Australia.
To contact
reporter Andrew Compart, send e-mail to [email protected].