Willie Walsh Biggest Winner In BA-Iberia Merger
London, England, United Kingdom (AHN) – Two key events will soon take place affecting the operations of British Airways. These are the final stages of the merger between BA and Iberia and the cabin crew vote on a peace offering from the air carrier.
If both events push through successfully, the biggest winner would be BA Chief Executive Willie Walsh. According to reports, the merger would result in a 12 percent pay hike for Walsh and a bonus of up to $2.475 million (1.65 million pounds) when the $6 billion (4 billion pounds) deal is sealed.
That would boost Walsh’s basic pay to $1.237 million (825,000 pounds) as chief executive of International Consolidated Airlines Group from his current base salary of $1.102 million (735,000 pounds) with BA.
If the airline’s 13,000 flight attendants accept the proposal from BA, it would relieve Walsh of a major headache and spare BA from further financial losses. Twenty-two days of strikes mounted by the cabin crew this year led to massive financial losses for BA, promoting the air carrier to offer the cabin crew a 2.9 percent pay increase for 2011 and another 3 percent hike in 2012.
Walsh’s responsibilities would also expand since he would run two airlines.
BA is expected to report later this week a first half pre-tax profit of $105 million (70 billion pounds). For the same period last year, BA logged a $438 million (292 million pounds) pre-tax loss.
Ahead of the merger, BA, Iberia and American Airlines announced early this month a revenue-sharing agreement that will provide passengers of the three air carriers access to a joint network that serves 433 destinations in 105 countries.
The deal allows the three air carriers to offer the same ticket prices for 5,178 daily departures that would yield a turnover of $7 billion (4.4 billion pounds) yearly.
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