News: British Airways CEO steps down

C-Suite

British Airways CEO steps down

British Airways CEO, Alex Cruz steps down due to the widespread criticism over his treatment of staff during rounds of job cuts.
British Airways CEO steps down

British Airways CEO, Alex Cruz has stepped down over the widespread criticism of leading ‘fire and rehire’ during the coronavirus crisis. This job cut strategy has made12,000 staff redundant.

Cruz is succeeded by Aer Lingus Chief Executive Seán Doyle  who is taking the helm at British Airways. Doyle takes over at BA as it is seeking to cut its workforce by 13,000 to combat the impact of Covid-19.

Doyle headed British Airways’ fleet and alliances division, with responsibility for its units at Gatwick and London City airports, before joining Aer Lingus last year.

Previously, he was Head of Strategy and Planning, ran its cargo business, was responsible for its south and central American operations, and did stints in Singapore and Sydney. Among other things, Doyle negotiated British Airways’ alliance with American Airlines.

In September, Cruz had to defend the job cuts strategy after unions said it was a gambit to phish 30,000 employees who still have jobs onto downgraded terms and conditions.

For staff that initially did not face redundancy, there was the possibility of future job cuts or new contracts with lower pay. It was widely reported some staff faced new contracts, which would cut pay by 50 percent.

Unions Unite and GMB, which represent thousands of lower paid staff, hit out at British Airways’ plan to cut jobs and working conditions.

In April, Len Mcluskey, leader of the Unite union described BA’s decision as heartless, and a “stab in the back”, saying it was “entirely at odds with the course of action followed by our European competitors as they seek a way through the coronavirus crisis”.

Mcluskey added: “To reject government support but then expect their own staff to pay the cost of such a misjudgement, is irresponsible, dangerous and destructive and is utterly at odds with the mood of the country at a time of crisis.”

Cruz, appointed as Chairman and Chief Executive of British Airways in 2016, was paid £805,000 in salary, benefits and pension in 2019

Since Cruz was appointed in 2016, there have been several high profile disputes over the direction of business travel at the airline. He was lambasted for changes over economy seating, industrial disputes and also a power supply issue in 2017.

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