WILLIE Walsh, the forthright chief executive of British Airways' owner International Airlines Group (IAG), is to step down, in a move likely to elicit a sigh of relief among politicians, union bosses and rival airline chiefs alike.

IAG said yesterday that Walsh would quit as chief executive in March, and officially retire on 30 June after 15 years at the firm.

It comes after the Irishman announced in late October that he would step down within two years. He will be replaced by Luis Gallego, chief executive of Spanish carrier Iberia, which is also owned by IAG.

Over a 40-year career in the aviation industry, which began as a pilot at Irish carrier Aer Lingus, Walsh took the reins at the airline in 2001.

He quickly acquired the unfortunate nickname of "Slasher Walsh" for cutting 2,500 jobs, reducing the range of aircraft and even selling off the carrier's art collection.

However, his arrival heralded a turnaround for Aer Lingus, and four years later Walsh was named the boss of British Airways, facing down a bitter strike among cabin crew workers in 2009.

He went on to lead the merger with Spain's Iberia in 2011 which created parent company IAG as it is known today. The firm's current shares are up 40 per cent since the merger nine years ago.

IAG turned a €1.43bn (£1.22bn) operating profit last year despite a string of damaging strikes at BA.

Alex Cruz, BA's chief executive under 58-year-old Walsh, had previously been tipped to take the top job at IAG. However, Cruz's chances were likely dented by the strikes, which resulted in Walsh urging management to "make a deal" in October. Instead, Gallego will replace him. Walsh said he had "been a core member of the team and has shown true leadership over the years".

Willie Walsh said yesterday upon announcing his exit: "It has been a privilege to have been instrumental in the creation and development of IAG."

His replacement, Gallego, said: "It is a huge honour to lead this great company. It is an exciting time at IAG and I am confident that we can build on the strong foundations created by Willie."

Some of Walsh's most memorable moments included striking a £1m bet with Sir Richard Branson in 2012 that the billionaire would cease to control Virgin Atlantic within five years, and that it would lose the Virgin brand.

Sure enough, Branson declared himself the winner in 2017 — but Walsh disputed this.

He said: "As everyone knows, he no longer owns or controls the business, a reality confirmed by the decision to sell more of his shares to Air France. He's lost the bet."

He also led the airline industry's response to a 2010 Icelandic volcanic eruption which prompted regulators to close airspace — flying an empty jet through the ash cloud to challenge safety concerns.

Michael O'Leary of rival Ryanair said Walsh would be "a huge loss to IAG and to the airline industry.

"His drive and vision has transformed both IAG and European airlines for the benefit of passengers everywhere. He has repeatedly proven that 'you'll never beat the Irish.'"

(c) 2020 City A.M., source Newspaper