BA leader steps down

British Airways, which is slashing a large number of jobs as coronavirus decimates the travel sector, said Monday that CEO Alex Cruz is stepping down "with immediate effect" but gave no reason.

Parent group IAG added in a statement that Cruz, who has been BA leader for four and half years, will be replaced by its Aer Lingus boss Sean Doyle but will remain non-executive chairman.

A company spokeswoman declined to touch upon media speculation over the type of his departure.

British Airways happens to be in the process of axing 13,000 jobs or around 1 / 3 of its workforce in response to the fallout from the COVID-19 pandemic, which includes decimated demand for flights.

New IAG leader Luis Gallego, who took the reins from Willie Walsh just last month, said Monday's reshuffle was aimed at emerging stronger from the health crisis.

"We're navigating the worst crisis faced inside our industry and I'm confident these internal promotions will ensure IAG is well put to emerge in a strong position," Gallego said in the statement.

"I want to thank Alex for all that he did at British Airways. He worked tirelessly to modernize the airline in the years before the celebration of its 100th anniversary.

"Since that time, he has led the airline through an especially demanding period and has secured restructuring agreements with almost all employees."

Cruz gave no touch upon his surprise departure.

Speaking last month, he defended heavy job cuts at the airline and argued that customers were "still afraid of traveling".

"Covid has devastated our business, our sector. We're still fighting for our very own survival," he told parliament's transport select committee.

IAG has forecast that it will take until at least 2023 for passenger demand to recuperate to pre-pandemic levels.

BA pilots voted in July to simply accept a package including job and pay cuts aimed at avoiding a lot more redundancies.

Cruz told lawmakers that the pandemic had created an "impossible situation".

"As CEO of British Airways, I must take responsibility. I cannot disregard the situation. I had to do something incredibly fast," Cruz said during his parliamentary grilling on September 16. "I deeply, deeply regret that so many loyal and hardworking colleagues of mine are experiencing to leave our business and I am aware why MPs are worried."

He added: "That is an impossible situation. I am completely dedicated and centered on protecting those almost 30,000 jobs of most those BA colleagues who'll remain within the business enterprise.

"Folks are still afraid of traveling... We don't visit a short term coming-back of our passengers."