International Airlines Group (IAG) has shrunk the size of its Board and has streamlined the management of its two largest airlines, British Airways and Iberia.
As part of the reorganisation, Antonio Vazquez and Sir Martin Broughton will resign as non-executive chairmen of Iberia and British Airways respectively.
Instead they will focus on their functions as chairman and deputy chairman/senior independent director of IAG.
The role of Iberia chairman and chief executive will be held by Luis Gallego and the role of BA chairman and chief executive will be held by Keith Williams. Both will continue to report into IAG chief executive Willie Walsh.
Gallego and Williams will stand down from the IAG Board to focus on their responsibilities at Iberia and British Airways respectively.
This means that the IAG Board will be composed of 12 members, of which two will be executive directors (the Group chief executive and Group chief financial officer).
In addition, Fernando Vives has tendered his resignation as secretary of the IAG Board and his current deputy Alvaro Lopez-Jorrin has been appointed to the role.
Lucila Rodriguez has been appointed deputy secretary.
Industry analysts said the move was designed to get the Board down to a more manageable size.
Meanwhile, strong London and transatlantic markets, a bounce-back from the Olympic effect and an improved performance from Iberia have helped boost IAG’s third quarter profits.
Operating profit before exceptional items rose to €690 million for the three months to September 30, compared to €270 million in the same three summer months last year.
Iberia made an operating profit of €74 million in the quarter, up from just €1 million a year earlier, while BA’s was €477 million, up from €268 million.
The group expects an operating profit for 2013, before exceptional items, of around €740 million.
