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Dave

Walsh spells out IAG coronavirus safety plans

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Willie Walsh has told a committee of MPs his plans for ensuring the safety of passengers and crew while the coronavirus epidemic continues.

Willie Walsh, chief executive of IAG, gave evidence to the House of Commons Transport Select Committee yesterday (Monday, 11 May)
Image: StuBaileyPhoto/Wikimedia-Commons/parliament.uk

Walsh, chief executive of International Airlines Group (IAG) was facing MPs gathering evidence for the Transport Select Committee.

He explained,

There is very little evidence of any passenger to passenger contact spreading of the coronavirus.  That’s not to say people on flights have not got off and subsequently tested positive and spread it as a result of that. 

Walsh went on to explain the measures IAG – comprising British Airways, Iberia, Aer Lingus, Level and Vueling – will take:

We will take all measures and we are working with regulators to implement what I hope will be a common system across – let’s start with – Europe, and hopefully globally, will take measures that need to be taken at airports, on board the aircraft and to ensure that all of the responsible authorities are able to track and trace everybody who has come off an aircraft to ensure that, if there is anybody that tests positive, that they can be tracked.

We are working with a number of regulators.  EASA, the European Safety Agency, will be publishing a draft document some time this week which will set out the regulations that they will propose to the EU27.  I expect that to be a comprehensive document which will deal with all aspects.  We will follow any regulation that is introduced to ensure that people can be confident that it is safe to climb aboard an aircraft in this environment.

Dave

Willie Walsh faces tough questioning from MPs

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Willie Walsh faced a series of questions via video conference from MPs at a Select Committee meeting this morning.

Walsh, Chief Executive of British Airways owner International Airlines Group (IAG) was quizzed on a range of topics, including potential redundancies at BA, passenger refunds and how airlines will help combat the coronavirus pandemic.

Huw Merriman MP, Chair of the House of Commons Select Committee, orchestrated a number of questions from fellow MPs from all sides of the House and drew out significant comments from Walsh.

Among the topics covered were:

  • Potential redundancies among BA staff and the consultation process.
  • The refunds due to passengers for cancelled flights and rearranged bookings.
  • State aid accessed by airlines within the group, including a Spanish government-backed loan of up to €1bn and UK government aid totalling in the region of £300m.
  • The level of cash being burned by IAG during the coronavirus-forced cessation of services.
  • Press reports of IAG “buying” 200 aircraft from Boeing – a purchase Walsh explained had not been confirmed.
  • The actions airlines within IAG will be taking to protect passengers and staff from coronavirus.

We will be publishing further information on some of these issues later this week.

Dave

BA owner sees “meaningful return” in July

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International Airlines Group is planning for a “meaningful return” in flights from July, but says it does not see a recovery in passenger traffic to 2019 levels until 2023.

In a communication to investors, IAG stated:

IAG is planning a meaningful return to service in July with a planning scenario that could see an overall reduction in passenger capacity of c.50% in 2020, but these plans are highly uncertain and subject to the easing of lockdowns and travel restrictions.

The group has taken advantages of the UK’s UK’s Coronavirus Corporate Finance Facility and Spain’s Instituto de Crédito Oficial facility. It expects that its second quarter 2020 will be significantly worse than the first quarter.

British Airways has formally notified its trade unions about a proposed restructuring and redundancy programme which is subject to consultation.

Willie Walsh, IAG Chief Executive stated:

We are working with the various regulatory bodies and are confident that changes in regulations will enable a safe and organised return to service. The industry will adapt to new requirements in the same way that it has adapted to developments in security requirements in the past. However, we do not expect passenger demand to recover to the level of 2019 before 2023 at the earliest. This means Group-wide restructuring is essential in order to get through the crisis and preserve an adequate level of liquidity. We intend to come out of the crisis as a stronger Group.

In addition, IAG Chairman Antonio Vazquez has announced today that Luis Gallego will succeed Willie Walsh as Group Chief Executive on 24 September.

Antonio Vazquez said:

We announced in March that Willie would delay his retirement for a short period. We can confirm today that Luis Gallego will take over the leadership on 24 September, the expected date for IAG’s AGM, when Willie will step down as CEO. We are grateful that Willie delayed his retirement at this challenging time providing the airlines’ management with the necessary stability to focus on the immediate response to the crisis. We look forward to working closely with Luis in his new role.

Natalie

Luis Gallego to succeed retiring Willie Walsh as CEO of IAG in March

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International Airlines Group (IAG) has announced that Willie Walsh has decided to retire as chief executive. He will stand down from the role and from the Board of IAG on 26 March 2020 and will retire on 30 June 2020. Luis Gallego, currently Iberia chief executive, will succeed Walsh.

Antonio Vázquez, IAG chairman, said:

Willie has led the merger and successful integration of British Airways and Iberia to form IAG.  Under Willie’s leadership IAG has become one of the leading global airline groups.

Willie has been the main driver of this unique idea that is IAG. I hugely admire his commitment, strong leadership and clear vision, always ready to take on whatever challenges lay ahead of him. I am deeply respectful of what he has achieved as CEO of this Group, of his sense of fairness, his transparency and his capacity to integrate people regardless of nationalities or backgrounds.

Willie has established a strong management team and I am delighted that Luis will be promoted from this team to succeed Willie as CEO. The Board is confident that Luis is the right person to lead IAG in the next stage of its development and we look forward to working closely with Luis in his new role.

Willie Walsh said:

It has been a privilege to have been instrumental in the creation and development of IAG. I have had the pleasure of working with many exceptional people over the past 15 years at British Airways and at IAG. Luis has been a core member of the team and has shown true leadership over the years and I have no doubt he will be a great CEO of IAG.

Luis Gallego has been CEO of Iberia since March 2013 and Chairman of the airline since 2014. He will take over as CEO of IAG in March 2020.

Luis Gallego said:

It has been a great pleasure to work with Willie over the last seven years. It is a huge honour to lead this great company. It is an exciting time at IAG and I am confident that we can build on the strong foundations created by Willie.

IAG has not yet named Gallego’s successor at Iberia.

If you need to book flights on any of IAG’s airlines – Aer Lingus, British Airways, Iberia, LEVEL or Vueling – contact your GTM Account Manager.