BA profits soar, boss refuses bonus

1:03pm Friday 16th May 2008

The troubled opening of Heathrow's Terminal 5 has cost BA boss Willie Walsh his annual bonus, despite the airline posting record profits.

The chief executive said he felt any award would have been "inappropriate" given the problem-hit move to the new building in March. It saw dozens of flights cancelled, thousands of passengers separated from their bags and dealt a huge blow to the airline's reputation.

Mr Walsh was speaking after unveiling record pre-tax profits of £883 million for the year to March 31, up 45% on the previous year. The performance has triggered a £35 million bonus pool for BA's other 42,000 staff, as well as the company's first dividend payment for seven years.

Mr Walsh said: "I felt in the context of the disappointing opening associated with Terminal 5 that it would be inappropriate for me to take a bonus despite the excellent financial performance of the company."

Under his remuneration package, he is entitled to a maximum bonus of 100% of salary depending on a series of criteria. During the year to March 2007 he was paid a salary of £625,000.

Mr Walsh said there had been no pressure "whatsoever" from other board members and big investors for him to forgo his bonus payment.

He came under huge pressure to quit in the wake of the disastrous T5 opening on March 27, making a series of public apologies. The episode went on to cost two senior BA executives their jobs.

Mr Walsh said he felt his position was not under pressure, adding: "I feel like I have just won the premier league with these financial results."

The profits hike came despite a year of soaring oil costs that saw the airline's fuel bill top £2 billion.

Mr Walsh said: "This is an outstanding financial result for the company despite rising fuel prices and significant economic slowdown in the last six months."

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