British Airways named Willie Walsh as its new chief executive on Tuesday, raising hopes the man who revived Irish state-owned carrier Aer Lingus will give fresh impetus to recovery at Europe's No 2 airline. Walsh, a former pilot, will start at British Airways (BA) as chief executive designate in May.
Departing CEO Rod Eddington, an outspoken 55-year-old who has slashed costs and jobs at BA, plans to return to his native Australia after he steps down from the top post in September.
Eddington's departure was no surprise, but the market had not been expecting a replacement to be named so soon.
"He (Walsh) was one of the strongest candidates out there," said Exane BNP Paribas analyst Nick Van den Brul.
"He was responsible for the turnaround of Aer Lingus and quite a lot of that was actually stream-lining and cost cutting the organisation. Someone with that experience is going to fit in (at BA), because there's a lot more to do."
Like Eddington, 43-year-old Walsh is credited with helping his airline survive tough times.
Walsh and two other senior executives resigned from Aer Lingus at the end of last year after disagreements with the Irish government about the airline's future direction.
He helped to reposition Aer Lingus as a low-cost carrier following the firm's brush with bankruptcy in 2001. The group has cut costs by 30 percent and laid off a third of its workforce to return it to profitability.
Analysts have said Eddington will be tough to follow. He cut 13,000 jobs and reduced debt during his tenure at BA which was challenged by a slump in global travel, the Sars virus, and high fuel prices.
But despite Eddington's cuts, BA still faces a challenging market as stiff low-cost competition drives down ticket prices and high fuel prices bite. Analysts say the carrier must continue to slash costs to survive.