British Airways chief executive Willie Walsh has opted against taking a substantial bonus payment for achieving performance targets, following the problematic opening of London Heathrow’s Terminal 5.
Walsh is understood to have been in line to receive up to £700,000 ($1.4 million) if BA fulfilled a set of financial and service criteria.
The carrier generated a 10% operating margin for the year ending 31 March with full-year profits of £875 million.
But Walsh says that, in the aftermath of the chaos which followed inauguration of Terminal 5 in March, it would be “inappropriate” to accept the performance bonus.
His decision has been welcomed by the Unite union, the carrier’s largest workers’ representative organisation, although Unite national secretary for civil aviation Steve Turner says: “We need to see BA use these profits to address ongoing concerns of our members.
“Uncertain economic forecasts for the industry, contentious reorganisation across the company, talk of consolidation with other carriers, and the rising cost of living are creating tremendous pressures on the workforce.”
Source: flightglobal.com's sister premium news site Air Transport Intelligence news