Under WW leadership BA has incurred industry leading fines around the world for ticket price fixing.
http://news.bbc.co.uk/1/hi/business/6925397.stm
plus £90 million for the cargo cartel
http://www.telegraph.co.uk/finance/newsbysector/industry/8121145/British-Airways-fined-104m-for-role-in-air-cargo-cartel.html
The national embarrassment of the T5 opening. Biggest losses in its history, worst industrial relations, table topping lost baggage, complaints.
Now risking passanger lives? Thank goodness the CAA took a prudent approach and prevented flying during the volcanic ash cloud.
http://www.correntewire.com/never_trust_ceo_your_personal_well_being
Note the final comment..
"NOTE And if the CEOs had gotten their way, and even if no engines had melted, the abrasion would have weakened the aircraft skin, and the effects could have taken years to show up"
WW commenting on the airspace closure .. "gross over-reaction to a very minor risk"
Flawed judgement calls from a flawed CEO. Can Walsh be trusted?
TGLynch - 02/05/2011 23:14 GMT
To be fair to Mr. Walsh the price fixing and cargo issues predated his leadership. With respect to the Airline, no CEO prior to Mr Walsh was willing to tackle the legacy issues of BEA/BOAC work practices and the pension issue which, had it not been tackled, would have bankrupted the airline. He did this with vigour and courage, in my view and it made the IAG deal possible as well as finally delivering on the AA/BA transatlantic pact. I think Mr Walsh showed commendable presence of mind in getting UK airspace open again reflecting his experience as a captain. As for the T5 debacle, it happened on his watch. BA demonstrated considerable hubris initially which invariably invites nemesis. I think BAA was equally if not more culpable with respect to the T5 issues underlined by the incompetence of the snow clearance operation last December. All in all, its a very good record and we will see how the new management team at BA now performs!
Um... but WW is no longer in charge of BA so I fail to see the relevance of this topic. Certain groups have tried to demonize the guy, can't think why. Of course it has absolutely nothing to do with the fact that he has dragged the business, kicking and screaming, into the 21st century, successfully improved productivity and overseen the streamlining of working practices.
I'm with you, pixelmeister, I fail to see the relevance of this topic. This is stirring for stirring sake. Ho hum. And I agree, WW has dragged the business into the 21st century, for which he has been given quite a few awards and honours of late. But then, I don't think Tete_de_Cuvee wishes to hear about any accolades for the man.
Stephen, Pixelmeister your comments may have an iota of validity if you had expressed a similar sentiment to the comments made about Duncan Holley, Bassa accounts and other irrelevant threads.
This thread is significantly more pertinent as it questions WW judgement calls and in this instance his passenger safety mentality. It is clear the CAA made the right call in rebuffing the initial calls to open airpace immediately, desipite desparaging comments such as "gross over reaction to a very minor risk". A cavalier comment in hindsight which Walsh should now retract and apologise for.
Your stance would appear to endorse an Equitable Life dash for the cash mentality. Am glad to see the CAA did not shirk its responsibility to the travelling public by trusting/kowtowing to the WW/corporates' line, unlike the FSA with EL - now the taxpayer is picking up the £Billions bill.
TGLynch - The Cargo Cartel was in place during WW's regime and would have continued. Had the Commission not intervened the "deplorable" cartel "would have continued", said EU Competition Commissioner Joaquin Almunia.
http://www.bbc.co.uk/news/business-11719507
robsmith100 - 04/05/2011 10:27 GMT
Tête_de_cuvée - wouldnt this post be best suited on business management forum? many commentators like myself are on this forum are pro Walsh.
VintageKrug - 04/05/2011 10:33 GMT
Just looks to most of us here like Tete is grasping at straws.
A not guilty verdict was returned:
http://www.independent.co.uk/news/uk/home-news/ba-pricefixing-trial-collapses-after-discovery-of-new-evidence-1970542.html
I'd be more interested to read the findings of the BASSA Branch Secretary's Employment Tribunal:
www.mediafire.com/?t9jdr3ydm9pj9pu
He lost.
I'd like to be certain that BASSA isn't using its subs income for unconstitutional ends; unfortunately, no accounts have been published, even to members, so it's not possible to say where the almost £1.5-2m per annum in subs went over the past decade.
I don't agree with most of what Tête_de_cuvée posts, but I do find it a refreshing balance to counter much of what another person posts, also most of which I don't agree with, but at the other end of this scale.
The world does tend to be a self balancing place, e.g. does the rabbit exist because of the fox or the fox because of the rabbit? This forum is a microcosm of the world.
Tete
Walsh took over as CEO in mid 2005. The cargo cartel judgement you refer to was as a result of activities spanning the period 1999 - 2006. BA was not the major offender in this cartel, that honour is reserved for Air France/KLM. To say that Walsh was solely responsible for this fine (which incidentally, BA had made a provision for in their accounts in 2006/7) is stretching things a bit far, as is any suggestion that he was the leading light in the case.
You also haven't addressed the principle criticism of this thread, namely that it fails to recognise that Walsh is CEO of IAG, NOT BA.
Why do some continue to bring WW into EVERY aspect of any topic about BA and try to demonise him for every perceived ill in the western world? Obsession is never a good look ......
Actually, Tete, I do have a keen interest in Duncan Holley, the BASSA Accounts and other "irrelevant threads" - I just don't feel the need to post my thoughts on them for posting sake.
DH/Bassa et al are contributing to the most amazing university course syllabus which is being taught this autumn as part of a graduate program in Europe this autumn.
I echo the comments by robsmith100 and others - you've raised this thread because____??? And you've titled it incorrectly since, like pixelmeister has said, WW is CEO of IAG, not BA.
And yet another fine for BA - this time £54 million to settle just the US class action alone - Europe still to settle.
More millions are also being spent on programs trying to build bridges destroyed by WWs strategy to divide his workforce.
http://uk.finance.yahoo.com/news/British-Airways-pays-54m-tele-1284166587.html;_ylt=ApZ9Ax0C21VNSaTfm2kbqSQ3sLFG;_ylu=X3oDMTFjdWIwdTY1BHBvcwMzBHNlYwNyZWxhdGVkLWhlYWRsaW5lcwRzbGsDYnJpdGlzaGFpcndh?x=0&.v=1
The cartel operated under WW regime. It would be interesting to know what action BA has taken against its employees prive to these illegal cartels?
WW has been looking for savings - how about stopping illegal activities - savings to BA - hundreds of millions.
VintageKrug - 08/06/2011 17:56 GMT
I think you'll find the word you are grasping for is "privy".
Which is exactly where this feeble attempt to demonise Willie Walsh belongs.
A not guilty finding was returned:
http://www.independent.co.uk/news/uk/home-news/ba-pricefixing-trial-collapses-after-discovery-of-new-evidence-1970542.html
Delsurrey - 09/06/2011 06:08 GMT
"The UK flag-carrier was one of 11 airlines.." Why is WW being singled out for comment? Can we stop these irrelevant personal attacks please!
Those of us who work in corporate organisations are all-too familiar with the attention-seeking, credit-claiming, idea-thieving, teflon-shouldered type. Mentioning no names, but some well-known brands have disappeared or become shadows on their various watches. My share portfolio, dividend receipts and airmiles accounts reflect the syndrome perfectly. .
2. Perhaps closer to subject .... One of the disturbing observations I make about BA policy towards its customers (or potential customers, more importantly) is the naive way in which BA offers London 'connections' which treat LHR, LGW and LCY as a single extended hub, without warning that the transfer is not arranged by BA, can be lengthy, and of significant additional cost .
To the London-familiar this is either useful, or amusing, but when a foreign travel consultant is conducting the enquiry, be very vigilant.
Delsurrey
The cartel operated under Walsh's regime.
The £54m BA has agreed to pay for the anti-trust class action element is nearly double the average amount to be paid by the other airlines. This would indicate that BA paid a lead role in the crime.
Fines, penalties and compensation for BA's price fixing have cost the company over one third of a BILLION pounds... and counting.
When the cost of the remaining class actions and fines in Europe/Worldwide are finally added in, BA is likely to have paid around half a BILLION pounds.
Again what actions have been taken against the culprits within BA who have caused this loss of between one third and one half a BILLION pounds?
http://uk.finance.yahoo.com/news/British-Airways-pays-54m-tele-1284166587.html;_ylt=ApZ9Ax0C21VNSaTfm2kbqSQ3sLFG;_ylu=X3oDMTFjdWIwdTY1BHBvcwMzBHNlYwNyZWxhdGVkLWhlYWRsaW5lcwRzbGsDYnJpdGlzaGFpcndh?x=0&.v=1
Hippocampus - 10/06/2011 13:07 GMT
The article you linked to says the activity took place between 2000 and 2006. Willie Walsh joined BA as CEO in late 2005. So, yes, you are so right, Willie Walsh should be blamed for something that started over five years before he joined the company and ended shortly after he joined.
The settlements are likely to be proportional to any benefit gained and as BA is one of the world's largest long haul carriers it is not surprising that it has paid one of the higher settlements.
But, still, carry on with your pathological obsession with vilifying one individual who had the courage to stand up to your militancy. Because that's what this is really all about isn't it?
The corrupt practices continued under Walsh, so Hippo are you claiming either
- Walsh knew the corruption was going on and decided against being the whistleblower thus saving BA over £300million in fines? (Chances are the class action penalties would still have to be paid)
or
- Walsh was blindsided by his execs and didn’t have a clue what his senior team were doing – smacks of incompetent leadership?
Which executives, if any, were dismissed for these illegal practices which have already cost BA one third of a BILLION pounds and could rise to half a BILLION?
