IAG Airline’s Walsh Hands Control To Gallego With Crisis In Mid-air

Walsh, who has been CEO of BA since 2005 and of IAG since it was created in 2011, faces one last test as Institutional Shareholder Services have called to reject his farewell 883,000 pound ($1.16 million), although the vote on the airline group’s remuneration report is non-binding.

Meanwhile Gallego, a Spanish insider who turned around Iberia, will have to cut costs, while managing damaged relations with unions and politicians and stepping up the group’s battle with Ryanair and easyJet.

IAG’s position is expecting to be strengthened by raising 2.75 billion euros ($3.25 billion) from shareholders in a rights issue which is backed by its biggest shareholder Qatar.

“Major shareholders are satisfied that IAG’s equity raise will be enough to weather the crisis… or at least that’s their hope,” one banking source told Reuters.