British Airways £105m pre-tax profit
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British Airways £105m pre-tax profit
Down 57%, and Colin Marshall leaving at the end of the year to be replaced by Martin Broughton. Shares have risen on the news.
Would have been £40m higher if not for the unnoficial industrial action in June.
Would have been £40m higher if not for the unnoficial industrial action in June.
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(from the Evening Standard)
Britain's flag carrier - which also announced the departure of chairman Lord Marshall after 20 years - reported pre-tax profits of just £60m for the six months to the end of September, against £310m for the same period last year. Marshall, aged 70, will be replaced by Martin Broughton, 56, executive chairman of cigarettes giant BAT.
But the succession to the chairmanship of the highly regarded Martin Broughton, it is hoped, will usher in a new commercial epoch with no ties to the carrier's pre-privatisation days.
The rise of Broughton, 56, who is giving up his career at cigarettes giant BAT, will give BA chief executive Rod Eddington a chairman not only of a similar age but also one who does not have the baggage of a leader who has fought many battles - not least that against Sir Richard Branson's Virgin Atlantic.
Broughton's appointment is likely to be well-received. His departure after 30 years at BAT comes only two weeks after he pulled off the substantial coup of merging its US interests with RJ Reynolds.
Broughton will be taking a substantial pay cut. Last year he earned £1.9m at BAT. The chairman's job at BA comes with a £250,000-a-year tag.
Broughton is currently BA's senior independent director. In preparation for this change, the board of British Airways has appointed him deputy chairman, with immediate effect.
Martin Broughton, currently chairman of British American Tobacco, joined the airline’s Board in 2000 and chairs its audit committee, as well as serving on the nominations, remuneration and safety review committees.
Britain's flag carrier - which also announced the departure of chairman Lord Marshall after 20 years - reported pre-tax profits of just £60m for the six months to the end of September, against £310m for the same period last year. Marshall, aged 70, will be replaced by Martin Broughton, 56, executive chairman of cigarettes giant BAT.
But the succession to the chairmanship of the highly regarded Martin Broughton, it is hoped, will usher in a new commercial epoch with no ties to the carrier's pre-privatisation days.
The rise of Broughton, 56, who is giving up his career at cigarettes giant BAT, will give BA chief executive Rod Eddington a chairman not only of a similar age but also one who does not have the baggage of a leader who has fought many battles - not least that against Sir Richard Branson's Virgin Atlantic.
Broughton's appointment is likely to be well-received. His departure after 30 years at BAT comes only two weeks after he pulled off the substantial coup of merging its US interests with RJ Reynolds.
Broughton will be taking a substantial pay cut. Last year he earned £1.9m at BAT. The chairman's job at BA comes with a £250,000-a-year tag.
Broughton is currently BA's senior independent director. In preparation for this change, the board of British Airways has appointed him deputy chairman, with immediate effect.
Martin Broughton, currently chairman of British American Tobacco, joined the airline’s Board in 2000 and chairs its audit committee, as well as serving on the nominations, remuneration and safety review committees.
Last edited by Cahlibahn; 10th Nov 2003 at 19:47.
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BATman
If the media is correct this chap from BAT will be the saviour of BA. I find it of interest that formally the saviour of a company was always the CEO and the variety of corporate skills he brought, so has it changed to the Chairman or might we assume that Mr Eddingtons tenure at BA is limited. I find it strange that Mr E would state that BATman was his prefered choice.
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Rodderick is looking forward to working with a Chairman who will allow him to swing the axe as freely as he did at CX and Ansett.
Marshall has only ever wanted to be popular with BA's empoyees, hence, he let Ayling take the blame for following his (Marshall's) orders to take on the cabin crew. Rod's hands have been tied by a weak Chairman and a weak board.
A clear indication of intent would be to replace Mike Street with someone who has the balls to tackle the "work practises" of MT, cabin crew and the baggage handlers.
BA cannot survive having staff sat at home on full pay, whilst temps on £30 per hour are still being used at Waterside.
BA cannot survive with cabin crew taking home £2,000 - £3,500 per month for serving tea and coffee and smiling if you're lucky.. (Thats if they're not on one of their 18 sick days per annum).
BA cannot survive with MT drivers who visit airside only 4 times in a shift and will only carry passengers in one direction.
This airline is penny wise but pound foolish. Perhaps Marshall should leave sooner, so that the re-structuring can begin.
Marshall has only ever wanted to be popular with BA's empoyees, hence, he let Ayling take the blame for following his (Marshall's) orders to take on the cabin crew. Rod's hands have been tied by a weak Chairman and a weak board.
A clear indication of intent would be to replace Mike Street with someone who has the balls to tackle the "work practises" of MT, cabin crew and the baggage handlers.
BA cannot survive having staff sat at home on full pay, whilst temps on £30 per hour are still being used at Waterside.
BA cannot survive with cabin crew taking home £2,000 - £3,500 per month for serving tea and coffee and smiling if you're lucky.. (Thats if they're not on one of their 18 sick days per annum).
BA cannot survive with MT drivers who visit airside only 4 times in a shift and will only carry passengers in one direction.
This airline is penny wise but pound foolish. Perhaps Marshall should leave sooner, so that the re-structuring can begin.
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Strong stuff HW, I am not entirely convinced about Lord Marshall he has been here so long that it is easy to forget he started the job cuts getting rid of BA Security, BA facilities and building maintenance, Motor transport repairs and numberous other departments along the way.
It might be that he has been here so long he has become part of the furniture like his predessor LK. However, much of what you say is accurate, much of this custom and practice is caused by weak and ineffective midddle management and in my experience they have remained constant throughout many of the changes.
Surely a strong company has strong leadership with personality, Mr Edd has at times been illusive and has never struck me as a personality but just trots out what the city wishes to hear.
At times within BA we have no forward plan, beset with rumours of changes often for no reason given. Next year just to confuse the issue routes change terminals at LHR and some stuff is being transfered back to LGW. With all this confusion we are now threatenning to take on the government over the third runway. We await the final solution do not hold your breath.
It might be that he has been here so long he has become part of the furniture like his predessor LK. However, much of what you say is accurate, much of this custom and practice is caused by weak and ineffective midddle management and in my experience they have remained constant throughout many of the changes.
Surely a strong company has strong leadership with personality, Mr Edd has at times been illusive and has never struck me as a personality but just trots out what the city wishes to hear.
At times within BA we have no forward plan, beset with rumours of changes often for no reason given. Next year just to confuse the issue routes change terminals at LHR and some stuff is being transfered back to LGW. With all this confusion we are now threatenning to take on the government over the third runway. We await the final solution do not hold your breath.
