Rod Eddington's legacy.
Controversial, moi?
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Rod Eddington's legacy.
I seem to recall that when Mr. Eddington was about to join BA there was a chorus of damning comments predicting dire consequences for all and pilots in particular. Having met and spoken to the man I liked and admired him enormously. The following would appear to sum up his time at BA.
DJ THE SKEPTIC: Eddington Will BA Hard Act To Follow
By Robb M. Stewart A DOW JONES NEWSWIRES COLUMN
LONDON (Dow Jones)--Asked what he thought outgoing British Airways (BAB) chief Rod Eddington's greatest legacy would be, Chairman Martin Broughton is said to have replied that it was perhaps that BA is "still here to ask what his greatest legacy was."
It's more than an idle quip. The Australian spent his five-year term chasing down costs just to keep BA from going under, only for BA and the wider industry to be buffeted by circumstance, from the September 11 terrorist attacks, SARS and the surge in fuel costs.
Yet what Eddington will probably go down in BA history for is his engaging manner, which went a long way to rebuilding investor confidence following the union unrest and farcical missteps such as repainting BA's tailfins that tar predecessor Bob Ayling's legacy.
Eddington, just as with Ayling, leaves BA having spent much of his term battling to cut costs to keep pace with rising competition, industry overcapacity and struggling short-haul routes. This has been BA's story since the early 1990s.
To his credit, Eddington leaves on a high note. Debt and employee numbers are down, efficiency's up. And BA's first-quarter figures out Friday contain the airline's strongest net profit of the new millennium, a record passenger load factor and the first quarterly improvement in yields since September 2001.
But just as Eddington picked up the cost-cutting from Ayling, so Eddington's successor will have to continue where he left off.
Willie Walsh takes over an airline in a much improved condition, but still facing many challenges. There's a large pension deficit, dividend concerns, high oil prices, continued industry subsidization of ailing carriers, competition from increasing numbers of no-frills airlines and a need to trim costs still further ahead of a move to a new terminal at London Heathrow and the acquisition of new planes.
With the airline industry expected to lose $5.5 billion this year, for a cumulative loss since the turn of the century of more than $40 billion, it remains to be seen if aviation can generate serious returns.
Walsh may spare a thought for Eddington, who in his new role as chairman of the Victorian Major Events Co. will doubtless have to endure mandatory attendance at every major sporting event in the province.
But fitting into the shoes of a such a popular chief will make it all the harder for Walsh to built a legacy of his own.
(Robb M. Stewart, founder of the Skeptic column in 2001, has reported for Dow Jones Newswires since 1997 from Sweden and the U.K. He can be reached on [email protected])
(END) Dow Jones Newswires
05-08-05 1220GMT
DJ THE SKEPTIC: Eddington Will BA Hard Act To Follow
By Robb M. Stewart A DOW JONES NEWSWIRES COLUMN
LONDON (Dow Jones)--Asked what he thought outgoing British Airways (BAB) chief Rod Eddington's greatest legacy would be, Chairman Martin Broughton is said to have replied that it was perhaps that BA is "still here to ask what his greatest legacy was."
It's more than an idle quip. The Australian spent his five-year term chasing down costs just to keep BA from going under, only for BA and the wider industry to be buffeted by circumstance, from the September 11 terrorist attacks, SARS and the surge in fuel costs.
Yet what Eddington will probably go down in BA history for is his engaging manner, which went a long way to rebuilding investor confidence following the union unrest and farcical missteps such as repainting BA's tailfins that tar predecessor Bob Ayling's legacy.
Eddington, just as with Ayling, leaves BA having spent much of his term battling to cut costs to keep pace with rising competition, industry overcapacity and struggling short-haul routes. This has been BA's story since the early 1990s.
To his credit, Eddington leaves on a high note. Debt and employee numbers are down, efficiency's up. And BA's first-quarter figures out Friday contain the airline's strongest net profit of the new millennium, a record passenger load factor and the first quarterly improvement in yields since September 2001.
But just as Eddington picked up the cost-cutting from Ayling, so Eddington's successor will have to continue where he left off.
Willie Walsh takes over an airline in a much improved condition, but still facing many challenges. There's a large pension deficit, dividend concerns, high oil prices, continued industry subsidization of ailing carriers, competition from increasing numbers of no-frills airlines and a need to trim costs still further ahead of a move to a new terminal at London Heathrow and the acquisition of new planes.
With the airline industry expected to lose $5.5 billion this year, for a cumulative loss since the turn of the century of more than $40 billion, it remains to be seen if aviation can generate serious returns.
Walsh may spare a thought for Eddington, who in his new role as chairman of the Victorian Major Events Co. will doubtless have to endure mandatory attendance at every major sporting event in the province.
But fitting into the shoes of a such a popular chief will make it all the harder for Walsh to built a legacy of his own.
(Robb M. Stewart, founder of the Skeptic column in 2001, has reported for Dow Jones Newswires since 1997 from Sweden and the U.K. He can be reached on [email protected])
(END) Dow Jones Newswires
05-08-05 1220GMT
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its very difficult for a prize bully to take over the mantle of a gentleman. mr walsh faces a massive task and unless the team around him are players as against street corner thugs his tenure will certainly be less than outgoing cx. mr.walsh in his previous tenure was answerable to a weak shareholder who more or less gave him free reign until the end. BAs shareholders will take no sh*t.
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BA shareholders know what needs to be done in BA and what Rod couldn't achieve due to the precearious financial position. I reckon they'll give Willy a lot of leeway to make long term strategic changes to the working practices of some of the least efficient workgroups.
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Well we'll see.....mr walshs appalling track record of relationships with his employees will be interesting with BA. As I said unless he has players as against thugs advising him he will sink. His previous position vis a vee his previous employment, well it was a small flying club as against what he is working with now and that is no disrespect to AL.
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We should also not forget Eddingtons disasterous time at CX, his destruction of Ansett Australia and the Go fiasco. If I did my job like Eddington did his, I'd have been sacked years ago.
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Bearcat
Contrary to what the papers wrote about Willie when the Government said no to enriching him via IPO, EI is now in a shocking state. God help Dermot Mannion - he is in the meatgrinder now and no mistake.
All that aggro with unions and government and yet the frontline staff make E100m only to see it 98% swallowed up by exceptionals and badly negotiated contracts.
I doubt BA would hire him if they were doing the process now but they have no option.
Contrary to what the papers wrote about Willie when the Government said no to enriching him via IPO, EI is now in a shocking state. God help Dermot Mannion - he is in the meatgrinder now and no mistake.
All that aggro with unions and government and yet the frontline staff make E100m only to see it 98% swallowed up by exceptionals and badly negotiated contracts.
I doubt BA would hire him if they were doing the process now but they have no option.
