British Airways (BA) chief executive Willie Walsh has turned down a $493,000 bonus package, as the embattled air carrier continues to face strike action from disgruntled staff and ire from investors.
It is the second year running that Walsh has given up his bonus, after turning down more than $730,000-worth of share options in 2008.
In BA’s annual report, Walsh said his aim was “to secure jobs and put the business on a footing where it can achieve the growth it needs to survive long-term.”
BA is facing difficult times. The flagship carrier last month reported record annual losses of £531 million ($780 million), even worse than the previous year’s losses. The ash cloud debacle which last month closed swathes of European airspace for six days cost it an estimated £100 million ($150 million).
Strike Chaos
Furthermore, cabin crew strikes have plagued the air carrier in the last six months, costing the company millions in revenues and grounding flights for 22 days since March until June 9.
The cabin crew of British Airways, represented by the Unite union, have been involved in a long-running dispute with the airline which began over staffing levels and working conditions.
But the union says the main outstanding grievance now is the removal of travel concessions for those who went on strike.
The strike actions have taken a blow on air travel, as hundreds of staff failed to turn up to work in a series of five-day strikes since the end of last year.
The latest action took place in May, while calls have already been made for more walk-outs in July. Most of the strikes have coincided with public holidays, further bringing chaos to European travel.
The March seven-day action affected more than 500,000 passengers and BA was forced to offer full refunds to anyone who has booked to travel with the airline in March.
Len McCluskey, Unite’s assistant general secretary, slammed Walsh’s leadership, adding, “His plans for BA have seen it become a byword for bullying, driven customers into the arms of competitors, poisoned working relations and is denying it a peaceful, stable future.”
After much effort services flew as normal from Gatwick and London City last week, and 70 percent of long-haul and 55 per cent of short-haul flights from Heathrow went ahead.
Terminal 5 Fiasco
British Airways have also come under fire this year after its failure to deal with the opening a new terminal, Terminal 5 at Heathrow Airport.
Hundreds of thousands of passengers were stranded when Terminal 5 opened for business in March.
Baggage handling problems were believed to be the main cause of hundreds of flights being delayed or cancelled. British Airways staff were found to be unprepared for the new terminal and the smooth transition the airline had promised ended in fiasco.
While forgoing his bonus, Mr Walsh retains his £735,000-per-year salary, which has remained at the same level since 2008, the company said yesterday. But he was only paid £674,000 last year, after giving up a month’s salary as part of cost-cutting efforts that saw staff across the airline invited to take unpaid leave or switch to part-time working, reports The Independent.
Keith Williams, BA’s finance director, also worked without pay for a month last year. But Williams is accepting his £167,000 share bonus for the year, on top of £403,000 basic pay. Williams is one of the lowest-paid finance directors in the FTSE 100, BA said.
It is the second year running that Walsh has given up his bonus, after turning down more than $730,000-worth of share options in 2008.
In BA’s annual report, Walsh said his aim was “to secure jobs and put the business on a footing where it can achieve the growth it needs to survive long-term.”
BA is facing difficult times. The flagship carrier last month reported record annual losses of £531 million ($780 million), even worse than the previous year’s losses. The ash cloud debacle which last month closed swathes of European airspace for six days cost it an estimated £100 million ($150 million).
Strike Chaos
Furthermore, cabin crew strikes have plagued the air carrier in the last six months, costing the company millions in revenues and grounding flights for 22 days since March until June 9.
The cabin crew of British Airways, represented by the Unite union, have been involved in a long-running dispute with the airline which began over staffing levels and working conditions.
But the union says the main outstanding grievance now is the removal of travel concessions for those who went on strike.
The strike actions have taken a blow on air travel, as hundreds of staff failed to turn up to work in a series of five-day strikes since the end of last year.
The latest action took place in May, while calls have already been made for more walk-outs in July. Most of the strikes have coincided with public holidays, further bringing chaos to European travel.
The March seven-day action affected more than 500,000 passengers and BA was forced to offer full refunds to anyone who has booked to travel with the airline in March.
Len McCluskey, Unite’s assistant general secretary, slammed Walsh’s leadership, adding, “His plans for BA have seen it become a byword for bullying, driven customers into the arms of competitors, poisoned working relations and is denying it a peaceful, stable future.”
After much effort services flew as normal from Gatwick and London City last week, and 70 percent of long-haul and 55 per cent of short-haul flights from Heathrow went ahead.
Terminal 5 Fiasco
British Airways have also come under fire this year after its failure to deal with the opening a new terminal, Terminal 5 at Heathrow Airport.
Hundreds of thousands of passengers were stranded when Terminal 5 opened for business in March.
Baggage handling problems were believed to be the main cause of hundreds of flights being delayed or cancelled. British Airways staff were found to be unprepared for the new terminal and the smooth transition the airline had promised ended in fiasco.
While forgoing his bonus, Mr Walsh retains his £735,000-per-year salary, which has remained at the same level since 2008, the company said yesterday. But he was only paid £674,000 last year, after giving up a month’s salary as part of cost-cutting efforts that saw staff across the airline invited to take unpaid leave or switch to part-time working, reports The Independent.
Keith Williams, BA’s finance director, also worked without pay for a month last year. But Williams is accepting his £167,000 share bonus for the year, on top of £403,000 basic pay. Williams is one of the lowest-paid finance directors in the FTSE 100, BA said.
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