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BA boss looks to the future
British Airways new chief executive Willie Walsh has outlined plans to spend £100 million on upgrading its long haul business class and £300 million on its relocation to Terminal 5.
On his first day in the role, the former Aer Lingus boss denied there would be drastic cost-cutting but, in an interview with the Financial Times, said the move to T5 in 2008 would present new technologies, including self-service and online check-in that would “strip out activity no longer required.”
He said staff implications of the move “would come later” although a rationalisation of jobs is inevitable.
New flat-bed business class seats are expected to be unveiled later this year before a gradual roll-out early in 2006. The investment would hit £100 million, said Walsh, who insisted BA would remain committed to world-class premium travel.
He added the airline would make significant investments in flight entertainment and in the ba.com website.
“There are further opportunities for efficiencies all across the airlines which we will need to deliver to ensure our financial viability and to allow us to invest in the future,” he said.
The aim, he said in statement, is to realise Rob Eddington’s goals of a 10% operating margin, up from 6.9% last year.
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