Emma Kelly/LONDON
British Airways chairman Lord Marshall took over the running of the airline on 10 March with the resignation of chief executive Bob Ayling. Marshall will take on the role of chief executive while a successor is sought.
Ayling leaves BA after four years as chief executive and a 15-year career with the UK carrier. His departure follows a difficult period for BA, which has seen increased competition, uneasy labour relations and a sinking share price. The airline suffered a £60 million ($95 million) pre-tax loss for the third quarter of last year and analysts believe it to be set for a full-year loss of more than £200 million.
To reverse its fortunes and rescue falling yields, Ayling spearheaded a controversial strategy of boosting premium traffic through a radical fleet restructure, premium cabin upgrade and route rethink. Ironically, his departure comes at a time when that appears to be showing the first signs of results.
"BA has a valid strategy - focusing on areas where an airline can make money," says analyst Chris Tarry of Commerzbank. The airline has moved away from its dependence on transfer traffic and the redesign of its premium long-haul product appears to be paying off, with traffic and yields climbing for the last quarter, says Tarry.
Industry sources suggest Ayling chose to resign, despite apparently losing the support of the non-executive directors over several issues. Ayling says that the last four years have taken their toll and he intends to spend time with his family before considering his future.
Tarry says "BA is at a turning point, with everything in place for a successor" - whose identity is yet to be determined. James Strong, chief executive of BA partner Qantas, is a possibility. Former Deutsche BA chief executive Carl Michel was widely tipped, when named BA commercial head in September, but his age (35) and limited BA experience reduces his chances.
Other contenders could include Rod Lynch, the BA Speedwing executive running Olympic Airways, Ansett boss Rod Eddington and Delta Air Lines executive vice-president Fred Reid, who led the formation of the Star Alliance at Lufthansa.
A successor will face difficult issues, including increasing North Atlantic competition and the overdue decision on restructuring of its short-haul operations at London Gatwick.
Source: Flight International
