| Journal: TWUK | Section: |
| Title: | Issue Date: 01/05/00 |
| Author: | Page Number: 1 |
| Copyright: Other |
Don’t expect any more money from this man
New BAboss Eddington expected to stick with Ayling’s controversial agent policies
Shareholders likely to be priority
Report by PAUL NORRIS
T RAVEL agents have been given a stark warning not to expect any favours from new British Airways chief executive Rod Eddington.ABTA, the Guild of Business Travel Agents and aviation analysts all expect the former Ansett Australia executive chairman, who starts at BA today, to continue with predecessor Bob Ayling’s controversial agent policies. And they believe any move to reinstate agent commissions or sacrifice cost-saving direct-sell initiatives is highly unlikely.
Eddington’s reputation from his 18 years at Cathay Pacific and lately at Ansett is as an airline executive unafraid to cut costs and highly aware of shareholder value.
ABTA chief executive Ian Reynolds said the association will seek a meeting with Eddington but did not appear confident the Australian will instigate radical new policies for agents.
Only last month BA revealed its payments to agents when commission is scrapped in January.
Reynolds’ views matched those of GBTA executive council member Tony Hughes who said the only differences he could see from Eddington was a bigger commitment to economy passengers.
ABTA aviation committee chairman Sandy MacPherson said: “It is unlikely Eddington will reverse any of BA’s policies on commission. We hope to develop a good relationship with him and continue to rebuild relationships with BA.”
Under Ayling, BA implemented a strong focus on premium customers with investment in new business and first-class products at the expense of transfer and low-yield passengers.
The trade’s doubts over Eddington’s commitment to improve agent relations is backed up by the City.
Analysts agree Eddington is the right man for the job because he has proved he can implement efficient practices at Cathay and Ansett.
They argue he will maintain BA’s three-pronged strategy of bringing in cost-effective aircraft; installing more attractive products; and bringing down costs.
ABNAmro analyst Damien Horth said: “Eddington’s role is to promote these strategies. He will also drive a strong financial emphasis. There will be room for manoeuvre but only in broad guidelines.”
Horth and Commerzbank analyst Chris Tarry stressed Eddington was chosen by BA because he had successfully turned Ansett’s fortunes around. BA will unveil losses of around £200m for 1999/2000.
ABAspokesman said: “Rod Eddington is looking forward to meeting key customer groups, which naturally includes meeting the travel trade.”
Meanwhile, Ansett has appointed the head of its international division Craig Wallace as temporary executive chairman until a replacement is found for Eddington.
n See Analysis, page 8
Agents’ friend? Senior industry figures and analysts have warned agents not to expect Eddington to show any commitment to increasing BA’s payments to the trade