Willie Walsh
Encyclopedia
Willie Walsh is an Irish
airline
executive who is CEO
of International Airlines Group
and the former CEO of Aer Lingus
and British Airways
.
. He attended his local secondary school Ardscoil Rís
. At the age of 17, he became a pilot at Irish
flag carrier
Aer Lingus
, joining as a cadet
in 1979. He acquired a Master's degree
in management and business administration from Trinity College, Dublin
during his pilot years.
He later joined company management, with various positions including that of Chief Executive of then company subsidiary, Futura
from 1998 to 2000.
, succeeding Michael Foley who had resigned following a harassment complaint. The carrier was in financial difficulty. Walsh took action by eliminating 2,000 staff positions, reducing the number of aircraft types and selling non-core assets, including an art collection at the company headquarters. He reconfigured Aer Lingus as a low-cost airline in imitation of Ryanair
, and began withdrawing from various services like short-haul Business Class and cargo services, and heavily restricting the airline's frequent-flyer programme, TAB.
The company operating profits rebounded, but the cost of the write-offs and redundancies meant that net profitability was not as quick to recover. Not all of Walsh's reforms were successful, such as the outsourcing of aircraft cleaning. The contracting had not been agreed with Aer Lingus unions which led to large payments to the private contractor while Aer Lingus employees did the cleaning work. A three-day lockout
occurred in 2002 during the peak of the cutbacks.
The management team suggested to the principal shareholder, the Irish Government
, a float of Aer Lingus on the stock market
. Stock floats are often rewarding to top management and this was opposed by the unions who feared a privatised Aer Lingus would impose even tougher working conditions. The Government eventually turned down the float and this led to Walsh and other management executives resigning from the company in January 2005.
The Taoiseach Bertie Ahern
subsequently described Walsh's offer of an MBO as "a time when management wanted to steal the assets for themselves through a management buy out, shafting staff interests.".
Dermot Mannion
, formerly of Emirates Airline
, succeeded Walsh as Aer Lingus Chief Executive Officer.
board were seeking a successor to Chief Executive Officer Rod Eddington
who had announced plans to return to his native Australia
at the end of his contract. Walsh was hired in May 2005 at the age of 43 with a six-month shadowing period to get to know the business before the departure of Eddington on October 2005.
and Iberia
forming a new holding company International Airlines Group
in January 2011. He also created a Joint Business Agreement with Iberia
and American Airlines
, meaning the three airlines now market and sell each other's seats and share revenue on trans-Atlantic routes.
alliance.
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
airline
Airline
An airline provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit...
executive who is CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of International Airlines Group
International Airlines Group
International Airlines Group is a multinational airline holding company headquartered in London, United Kingdom and with its registered office in Madrid, Spain...
and the former CEO of Aer Lingus
Aer Lingus
Aer Lingus Group Plc is the flag carrier of Ireland. It operates a fleet of Airbus aircraft serving Europe and North America. It is Ireland's oldest extant airline, and its second largest after low-cost rival Ryanair...
and British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
.
Early life
Walsh was born in Dublin, IrelandRepublic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. He attended his local secondary school Ardscoil Rís
Ardscoil Rís
Ardscoil Rís is a boys' secondary school on Griffith Avenue, Dublin, Ireland. The school was under the trusteeship of the Christian Brothers, however they withdrew from Education in Ireland in September 2008 and the school passed into the trusteeship of the Edmund Rice Schools Trust upon the...
. At the age of 17, he became a pilot at Irish
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
flag carrier
Flag carrier
A flag carrier is a transportation company, such as an airline or shipping company, that, being locally registered in a given country, enjoys preferential rights or privileges, accorded by the government, for international operations. It may be a state-run, state-owned or private but...
Aer Lingus
Aer Lingus
Aer Lingus Group Plc is the flag carrier of Ireland. It operates a fleet of Airbus aircraft serving Europe and North America. It is Ireland's oldest extant airline, and its second largest after low-cost rival Ryanair...
, joining as a cadet
Cadet
A cadet is a trainee to become an officer in the military, often a person who is a junior trainee. The term comes from the term "cadet" for younger sons of a noble family.- Military context :...
in 1979. He acquired a Master's degree
Master of Science in Management
Master of Science in Management, abbreviated MSc or MSM, is a Master of Science academic degree that is common throughout the United States and Europe. It is similar to the MBA degree, and often requires a dissertation before a graduate is admitted to it. The MSc is a research-oriented program...
in management and business administration from Trinity College, Dublin
Trinity College, Dublin
Trinity College, Dublin , formally known as the College of the Holy and Undivided Trinity of Queen Elizabeth near Dublin, was founded in 1592 by letters patent from Queen Elizabeth I as the "mother of a university", Extracts from Letters Patent of Elizabeth I, 1592: "...we...found and...
during his pilot years.
He later joined company management, with various positions including that of Chief Executive of then company subsidiary, Futura
Futura International Airways
Futura International Airways was an airline based in Palma de Mallorca, Spain. It operated scheduled services and charter flights for tour operators and other airlines, in Europe, as well as wet lease and ad hoc charters...
from 1998 to 2000.
Aer Lingus Chief Executive Officer
In October 2001, he was appointed CEO from his then position of Chief Operating OfficerChief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...
, succeeding Michael Foley who had resigned following a harassment complaint. The carrier was in financial difficulty. Walsh took action by eliminating 2,000 staff positions, reducing the number of aircraft types and selling non-core assets, including an art collection at the company headquarters. He reconfigured Aer Lingus as a low-cost airline in imitation of Ryanair
Ryanair
Ryanair is an Irish low-cost airline. Its head office is at Dublin Airport and its primary operational bases at Dublin Airport and London Stansted Airport....
, and began withdrawing from various services like short-haul Business Class and cargo services, and heavily restricting the airline's frequent-flyer programme, TAB.
The company operating profits rebounded, but the cost of the write-offs and redundancies meant that net profitability was not as quick to recover. Not all of Walsh's reforms were successful, such as the outsourcing of aircraft cleaning. The contracting had not been agreed with Aer Lingus unions which led to large payments to the private contractor while Aer Lingus employees did the cleaning work. A three-day lockout
Lockout (industry)
A lockout is a work stoppage in which an employer prevents employees from working. This is different from a strike, in which employees refuse to work.- Causes :...
occurred in 2002 during the peak of the cutbacks.
The management team suggested to the principal shareholder, the Irish Government
Irish Government
The Government of Ireland is the cabinet that exercises executive authority in Ireland.-Members of the Government:Membership of the Government is regulated fundamentally by the Constitution of Ireland. The Government is headed by a prime minister called the Taoiseach...
, a float of Aer Lingus on the stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
. Stock floats are often rewarding to top management and this was opposed by the unions who feared a privatised Aer Lingus would impose even tougher working conditions. The Government eventually turned down the float and this led to Walsh and other management executives resigning from the company in January 2005.
The Taoiseach Bertie Ahern
Bertie Ahern
Patrick Bartholomew "Bertie" Ahern is a former Irish politician who served as Taoiseach of Ireland from 26 June 1997 to 7 May 2008....
subsequently described Walsh's offer of an MBO as "a time when management wanted to steal the assets for themselves through a management buy out, shafting staff interests.".
Dermot Mannion
Dermot Mannion
Dermot Mannion is the current Deputy Chairman of Royal Brunei Airlines and former Chief Executive Officer of Aer Lingus.Mannion was born in 1958 in Sligo, Ireland, one of eight children . He attended school at St. John's Boys School and Summerhill College, in Sligo...
, formerly of Emirates Airline
Emirates Airline
Emirates is the airline based in the Emirate of Dubai part of the United Arab Emirates . Based at Dubai International Airport it is the largest airline in the Middle East, operating over 2,400 flights per week, from its hub at Terminal 3, to 111 cities in 62 countries across six continents...
, succeeded Walsh as Aer Lingus Chief Executive Officer.
British Airways Chief Executive Officer
The British AirwaysBritish Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
board were seeking a successor to Chief Executive Officer Rod Eddington
Rod Eddington
Sir Roderick Ian Eddington is an Australian businessman. He is currently chair of the government body Infrastructure Australia, a director of News Corporation, continuing his long association with that company, and has served in other senior positions including as former CEO of British...
who had announced plans to return to his native Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
at the end of his contract. Walsh was hired in May 2005 at the age of 43 with a six-month shadowing period to get to know the business before the departure of Eddington on October 2005.
Structural change
Willie Walsh took over the reins of British Airways as CEO in October 2005, and faced a number of major challenges, including a global downturn, increased competition (from low cost carriers in Europe and premium carriers worldwide), increasing oil prices and increases in tax. He successfully presided over a period of extensive change for the company and saved the company from bankruptcy - he reduced the numbers of managers, increased productivity of engineers, baggage handlers and flight crew, and saw through a dispute with some of the airline's cabin crew.Disruption
The major challenges for the airline industry were exacerbated by various natural events such as snow, fog and volcanic ash. He described the closure of European airspace in April 2010 over worries about the ash plume from an erupting Icelandic volcano as a "gross over-reaction to a very minor risk".Merger with Iberia
Walsh oversaw the merger of British AirwaysBritish Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
and Iberia
Iberia
The name Iberia refers to three historical regions of the old world:* Iberian Peninsula, in Southwest Europe, location of modern-day Portugal and Spain** Prehistoric Iberia...
forming a new holding company International Airlines Group
International Airlines Group
International Airlines Group is a multinational airline holding company headquartered in London, United Kingdom and with its registered office in Madrid, Spain...
in January 2011. He also created a Joint Business Agreement with Iberia
Iberia
The name Iberia refers to three historical regions of the old world:* Iberian Peninsula, in Southwest Europe, location of modern-day Portugal and Spain** Prehistoric Iberia...
and American Airlines
American Airlines
American Airlines, Inc. is the world's fourth-largest airline in passenger miles transported and operating revenues. American Airlines is a subsidiary of the AMR Corporation and is headquartered in Fort Worth, Texas adjacent to its largest hub at Dallas/Fort Worth International Airport...
, meaning the three airlines now market and sell each other's seats and share revenue on trans-Atlantic routes.
International Airlines Group
On 24 January 2011, Willie Walsh became chief executive of International Airlines Group (IAG), which is the parent company of BA and Iberia. Both airlines are members of the OneworldOneworld
Oneworld , branded as oneworld, is one of the world's three largest global airline alliances with its central management team, oneworld Management Company, based in New York City, New York, USA. Oneworld was founded in 1999 by American Airlines, British Airways, Canadian Airlines, Cathay Pacific...
alliance.