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Should Alex Cruz step down or be replaced? [FT poll]

View Poll Results: Should Alex Cruz (BA's Chief Executive and Chairman) step down or be replaced?
Yes
93.91%
No
6.09%
Voters: 936. You may not vote on this poll

Should Alex Cruz step down or be replaced? [FT poll]

Old May 28, 17, 1:42 pm
  #1  
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Should Alex Cruz step down or be replaced? [FT poll]

James officially leaves his post as CEO for Etihad on the 1st July by which I canít see how IAG or its shareholders would still want Alex in charge, especially as the IT fiasco rumored to be running into hundreds of millions of pounds and very low support from employees and customers. JH, on the other hand, has built perhaps one of the finest and successful premium airlines in the sky. The only problem I see is if he would ever accept this challenge and if Willie Walsh would ever approach him.
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Old May 28, 17, 1:44 pm
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Perhaps a ? needed in your thread title.
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Old May 28, 17, 1:45 pm
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Originally Posted by icegirl View Post
James officially leaves his post as CEO for Etihad on the 1st July by which I canít see how IAG or its shareholders would still want Alex in charge, especially as the IT fiasco rumored to be running into hundreds of millions of pounds and very low support from employees and customers. JH, on the other hand, has built perhaps one of the finest and successful premium airlines in the sky. The only problem I see is if he would ever accept this challenge and if Willie Walsh would ever approach him.
I think you misunderstand where the cuts culture comes from. Cruz may be doing the deeds but Walsh is the architect.

Someone who spends money won't come in.

Not until the airline is on it's knees.
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Old May 28, 17, 1:47 pm
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Thought Hogan was joining D.E. Shaw?
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Old May 28, 17, 1:49 pm
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Originally Posted by MPH1980 View Post
I think you misunderstand where the cuts culture comes from. Cruz may be doing the deeds but Walsh is the architect.
Exactly, as well as a former BA CEO....
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Old May 28, 17, 1:56 pm
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David Cush, Virgin America's CEO is out of the job due to the Alaska Merger.

Would be a pretty unique and innovative choice. I think the "low fare, high value" concept could work well for BA.

http://www.sandiegouniontribune.com/sdut-virgin-america-ceo-looks-to-make-flying-fun-again-2011nov25-story.html
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Old May 28, 17, 2:02 pm
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Originally Posted by MPH1980 View Post
I think you misunderstand where the cuts culture comes from. Cruz may be doing the deeds but Walsh is the architect.

Someone who spends money won't come in.

Not until the airline is on it's knees.
You seriously don't think they already are at this very moment?
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Old May 28, 17, 2:06 pm
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The same James Hogan who is widely credited as being the "mastermind" behind all of the billions Etihad "invested" in failing second rate airlines (i.e. poured down the drain), which has necessitated cost cuts of an unprecedented scale and resulted in staff morale at an all-time low due to people getting sacked left, right and centre?
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Old May 28, 17, 2:10 pm
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Look at it another way you can stick with the current iteration of BA First or man who can give you something above and beyond, Apartments or Residence?
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Old May 28, 17, 2:12 pm
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Like many corporations there's the MD / Chairman / CEO good guy bad guy mix. But I'm confident that although Cruz pulls the trigger, you can bet it's Walsh loading the gun
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Old May 28, 17, 2:14 pm
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Originally Posted by icegirl View Post
You seriously don't think they already are at this very moment?
Not by a long shot. Decent profits going on. If it was on the way down and a few large corporates depart THEN it'll get interesting.

Until then cuts with selective investment (e.g. the first wing, cw duvets) is the order of the day.
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Old May 28, 17, 2:19 pm
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Originally Posted by stargold View Post
The same James Hogan who is widely credited as being the "mastermind" behind all of the billions Etihad "invested" in failing second rate airlines (i.e. poured down the drain), which has necessitated cost cuts of an unprecedented scale and resulted in staff morale at an all-time low due to people getting sacked left, right and centre?
You never put those things on your CV, just stick to the positives.
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Old May 28, 17, 2:50 pm
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Originally Posted by icegirl View Post
You seriously don't think they already are at this very moment?
Looking at the share price of IAG, it seems to be doing well - pretty much at its highest point since 2011
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Old May 28, 17, 2:54 pm
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Originally Posted by icegirl View Post
James officially leaves his post as CEO for Etihad on the 1st July by which I can’t see how IAG or its shareholders would still want Alex in charge, especially as the IT fiasco rumored to be running into hundreds of millions of pounds and very low support from employees and customers. JH, on the other hand, has built perhaps one of the finest and successful premium airlines in the sky. The only problem I see is if he would ever accept this challenge and if Willie Walsh would ever approach him.
Why would he want to be the CEO with Willie bossing him around? No thank you! The CEO of British Airways answers to IAG, so isn't really a 'CEO' if you know what I mean!

And yes, Alex Cruz is a yes man. I blame Willie for all this BOB and IT disgrace! Cruz is basically a secretary who answers to Walsh!
At least AC gets paid a lot for a secretary!

Anyway, joking aside, I see AC staying for now. This alone won't lose him his job. They will probably find one of the lower managers and sack one or 2 of them as a scapegoat to blame them for this mess.

I estimate this mess to cost BA around 300,000,000 GBP overall if everyone claims on their EU261 of course, on the basis that this easily affected a few hundred thousand passengers (BA flew 45,000,000 people last year) Even if they don't, you are talking over 100,000,000 GBP best case scenario for BA on disruption expenses alone (hotels, rebookings, transport, lost bookings, etc. etc., even increased champagne consumption in the lounges!)

So with a last year profit of 1.4 bilion or so, this incident can take something like. 25% of their profit for the whole year. I am attaching BA past financial figures for reference.

So AC sacked? No. But bonuses lower for sure!

Oh and my favorite part of this is that all the money he wanted to save by introducing BOB has been blown out of the window by the cost of this IT incident!

Karma, perhaps?

Last edited by ahmetdouas; May 28, 17 at 3:07 pm
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Old May 28, 17, 3:04 pm
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Maybe in a year or two, but at the moment Hogan is the joke of the industry, The billions he blew on AZ are simply GONE, over the next 6-18 months we are probably going do see double that amount vaporize with Air Berlin.
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