An Irishman at BA

Any successful career, be it in politics, sport or business, needs some luck and Willie Walsh would appear to have his fair share…

Any successful career, be it in politics, sport or business, needs some luck and Willie Walsh would appear to have his fair share.

Just as his decision to resign from Aer Lingus with a view to starting his own airline was beginning to look a little hasty, along comes British Airways with what must be one of the most exciting and challenging jobs in civil aviation. However, to attribute Mr Walsh's success to good fortune alone would be to do him a disservice. BA clearly feels that he is the chief executive to deliver on its new corporate strategy. No doubt it was his impressive track record at Aer Lingus which brought the company to this conclusion.

Along with his two colleagues, Brian Dunne and Seamus Kearney, Mr Walsh pulled the Irish airline back from the precipice in the aftermath of the September 11th atrocities. They then went on to develop a hybrid model for short haul in Europe, blending aspects of the existing Aer Lingus modus operandi with practices borrowed from the low cost carriers. This, together with the revival of its trans-Atlantic business, allowed the airline to reach levels of profitability not seen outside the low cost sector.

The problems that now face Mr Walsh at BA are nowhere near as serious as those that confronted him at Aer Lingus in 2001. BA has also successfully weathered the difficult times that followed September 11th. Under its outgoing chief executive, Rod Eddington, it has shed 14,000 jobs, exited the low cost market - via the sale of its subsidiary Go - and cut costs throughout the business.

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The strategy that Mr Walsh will inherit involves the airline trying to cut its costs even further. A whole range of industrial relations issues will arise as BA tries to bring its business model closer to that of the low cost carriers. In addition, strategic decisions need to be made about its short haul and long haul businesses.

Mr Walsh's experience at Aer Lingus is directly relevant in the context of these challenges. But he will be operating on a far bigger stage and will be subjected to a level of scrutiny that behoves the chief executive of one of the world's most high profile airlines.

The immediate consequences of Mr Walsh's new appointment will be benign for his former employer. The threat posed by his plans to set up his own airline has dissipated. But ultimately BA is a competitor of Aer Lingus, and Mr Walsh's appointment is a further reminder that the Government must waste no more time in deciding on the future direction of the national carrier and the crucial issues of fresh investment and ownership. Appointing a replacement for Mr Walsh would be a start.