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British Air names new CEO
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April 25, 2000: 11:01 a.m. ET
'Labor-friendly' Australian Rod Eddington replaces Ayling at UK carrier
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LONDON (CNNfn) - British Airways on Tuesday appointed Australian Rod Eddington to replace ousted head Bob Ayling as chief executive in a bid to restore investor confidence in Europe's largest airline.
Eddington, currently executive chairman of Australia's Ansett Australia, had been an early favorite to replace Ayling, who British Airways last month after a four-year reign characterized by labor strife, a controversial strategic refocus and a disastrous slide in its share price.
Analysts described Eddington (right) as a vastly experienced airline chief who, before Ansett, headed Hong Kong's Cathay Pacific Airways for five years. He takes over from interim chief executive Colin Marshall, Ayling's predecessor, on May 1.
Ayling has presided over a strategy of increasing the proportion of business class passengers carried and reducing the number of cheaper fares. Despite some signs that this plan may be working, the airline, buffeted by high fuel prices, tough competition on its key North Atlantic routes and the strength of sterling against other European currencies, is heading for its first loss since its 1987 privatization.
Ayling's personal popularity at the company was reported to be at a low ebb, following thousands of job cuts in recent years and a protracted strike in 1997.
Analysts called Eddington "blunt and energetic" and said he had a good reputation for labor relations, though he presided over a damaging cabin crew strike while at Cathay. His term at Ansett was coming to an end after media firm News Corp. sold its 50 percent stake in the carrier to Air New Zealand, which now owns the whole of the Australian airline.
However, analysts also said they were surprised Eddington did not move to News Corp., where he is deputy chairman of its Australian media arm, News Ltd.
 Eddington is credited with returning Ansett to profitability after an expansion into international routes had left it nursing heavy losses.
BA (BAY) shares rose 2 percent to 306 pence in London following the announcement. The stock had fallen as low as 257 pence this year and lost a third over the last 12 months, though it climbed after the company disclosed Ayling's departure. 
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