BA will grow from Madrid, warns Walsh
WILLIE WALSH, the British Airways chief executive, yesterday reiterated his warning that the airline would grow in future at Madrid instead of Heathrow if the government failed to build the infrastructure needed to cope with rising demand for air transport.
Speaking at the Institute of Directors (IOD), Walsh said the UK could compete effectively for a few years but warned that in 20 years it could be bypassed because the country doesn’t have the existing infrastructure needed to support growing demands.
The government’s decision to axe the expansion programme at Heathrow means the runways are now full, said Walsh.
As a result, the airline’s planned Spanish merger could allow the airline to exploit Barajas Airport’s four runways, according to Walsh, who said that currently the airport operates only 80 per cent of its capacity.
Walsh also hit out at the increasing rise in air passenger duty (APD) and argued that separate UK airline taxation should come to an end otherwise it could be damaging to the economy as commercial carriers leave the country.
But Walsh remained upbeat about BA’s future, despite being faced with a possible third strike this summer, and said it was a possibility that the airline could buy or merge with more airlines next year.
A planned joint venture with American Airlines is likely to receive clearance from competition bodies in Europe and the US relatively soon, while BA is awaiting six new Boeing 777-300 aircraft to its fleet.
“But all such investment is dependent on reshaping our business.
“That is why we have been pursuing structural change, which has lead to lower headcount and more efficient ways of working,” said Walsh.