* BA CEO Alex Cruz replaced with immediate effect
* Cruz will stay on for transition period
* Management changes come a month into IAG CEO Gallego's
tenure
(Adds analyst comment, share price)
By Sarah Young
LONDON, Oct 12 (Reuters) - Luis Gallego, who took over as
chief executive of IAG last month, stamped his mark on
the airlines group on Monday by promoting Aer Lingus boss Sean
Doyle to lead British Airways, replacing Alex Cruz with
immediate effect.
It was one of a number of management changes announced by
the Anglo-Spanish airlines group and marks a return to BA for
Doyle, who worked as director of network, fleet and alliances
before leaving for Aer Lingus in 2019.
Cruz had been BA boss since 2016 and will stay on as its
non-executive chairman for a transition period, IAG said.
Doyle faces a huge challenge at BA, which like all airlines
is struggling due to low levels of flying during the pandemic.
IAG last month raised 2.7 billion euros ($3.2 billion) to
reduce its debt and help it survive the pandemic.
"We're navigating the worst crisis faced in our industry and
I'm confident these internal promotions will ensure IAG is well
placed to emerge in a strong position," Gallego said in a
statement.
Davy analyst Stephen Furlong said it was not a surprise that
Gallego had moved quickly to make the changes, calling him
"decisive" and noting that his background is of leading
significant restructuring at IAG's Iberia Express and Iberia.
The last few months have been tough for Cruz, who was tasked
with driving through 13,000 job cuts at BA, making him a
frequent target of trade union hostility.
"I suspect they wanted a newer face going forward with BA,"
Furlong said, adding that Doyle had proved himself at Aer
Lingus, which went into the coronavirus crisis as IAG's no.1
performing airline.
Cruz's remit following his appointment was to cut costs at
BA so it could better compete with low-cost rivals, which did
not always endear him to staff or passengers.
Gallego, formerly boss of Iberia, pipped Cruz to the IAG top
job earlier this year, replacing Willie Walsh.
Gallego and Cruz previously worked together at Spanish
airline Vueling, now also owned by IAG.
Analysts suggested that a number of high-profile blunders at
BA under Cruz, including a data breach for which it was fined
$230 million in 2019 and an IT failure in 2017 which left tens
of thousands of passengers stranded, would not have helped his
cause.
Cruz was also at the helm last year when BA pilots went on
strike for the first time, costing the airline more than 137
million euros.
IAG said Fernando Candela, CEO of its airline Level, would
take on the new role of group chief transformation officer.
It named Aer Lingus' Donal Moriarty as interim CEO at the
Irish carrier and said a permanent replacement would be
announced in due course.
IAG shares traded down 0.7% to 102.9 pence. Hurt by the
pandemic, the stock has lost 75% of its value in the year to
date.
($1 = 0.8465 euros)
(Reporting by Sarah Young; Editing by Michael Holden, Jason
Neely and Jan Harvey)