Sky News business presenter Emma Crosby
Just come back from interviewing Willie Walsh this morning. He’s the embattled Chief Executive of British Airways and is one of those interviewees who always seems to generate a passionate reaction from the viewers along the lines of “can you ask him where my suitcase has gone” or “Heathrow… it’s a national disgrace”.
And after the disastrous opening of Terminal 5, this Irishman has certainly got used to taking a lot of flack.
However, today Willie Walsh has reasons to be smiling. British Airways has just delivered record full year profits, up nearly 45% to £883 million, returned a dividend to shareholders for the first time in many years and hit a 10% operating margin target.
That target’s triggered £35 million worth of employee bonuses. A bonus that Willie Walsh won’t be sharing because he told me he feels it would be inappropriate to accept.
It could have been worth up to £700,000 which is an awful lot of money to pass up. Maybe this is the sensitive thing to do after 2 of his board members have recently “left” the company post Terminal 5 fiasco and many members of the public hold him personally to blame.
He’s confident but contrite and says he wants us not to judge him on T5 but on British Airways’ financial performance.
He also animatedly told me he still has the confidence of his staff and Board of Directors and that recent media reports that a head hunter has been charged with finding his replacement are utterly absurd as the head hunter Whitehead Mann was hired directly by him.
From a city point of view this is fair enough. From the eyes of a shareholder Terminal 5 is short-term issue and good financial results have been delivered. For now.
Willie Walsh’s real test has only just begun. With oil hitting yet another all-time high in the U.S. today - above $127 a barrel - and the economy slowing he’s already warning of challenging conditions ahead, something that’s reflected in BA’s disastrous share price performance that’s pretty much halved in value over a year.
Let us know what you think.
I would have a number of questions:
1)Is the bonus to be paid at a later time.
2)has he been offerred a futher bonus if he makes a success of the current Terminal 5 Project.
3)What sallary is he on at present.
Posted by: Desmond Moore - Ireland 22 May 2008 12:01:03
Aah, but if you look at the word 'British', you also get 'Irish'!
Chow Meow.
Posted by: Khalid 18 May 2008 15:08:26
Willie Walsh is not British lol. Certainly an 'asset' though.
Posted by: John 16 May 2008 22:07:36
In my humble opinion he should take his bonus and donate it to 'Help for Hero's'
Posted by: Ashley (UK) 16 May 2008 20:45:07
Sorry can't get into it
Posted by: Michael 16 May 2008 19:15:02
Very refreshing to find an honest person in industry today, most take up their positions and milk the system for what it is worth. Well done Mr Walsh. I travel regulary with BA and I beleive it is a very fine airline.
Posted by: Elizabeth Davies Cape Town 16 May 2008 14:48:40
Emma
One of the most remarkable of British assets to emerge from within the aviation industry for a considerable period of time no doubt comes in the shape of Willie Walsh, whose honour and integrity surpasses very few.
Terminal 5 whilst construed to be a disaster by those with very little knowledge of real-time work manouvres has and shall continue to be a success, as evident by way the crew have picked themselves up during what can only be deemed turbulant times.
Indeed pasengers have been discomforted by the many a fact surrounding delays and lost baggage, and as the only person who took it on the chin, got on with the job and ensured each bag met its owner, you cannot but praise his efforts to turnaround the fortunes of an organisation beleagured by many a hike in price and competition.
The staff of BA duly deserve the bonus award for their efforts and commitment, and long may that commitment last whilst pilots engage their endeavours to make their employer the pride of the Skies.
All in all, I had and shall continue to have [True Faith] in BA and congratulate all upon this [New Order]. Cheers!
Posted by: Khalid 16 May 2008 13:41:29