Bits: mystery bonus when you buy Avios, Alex Cruz loses his 2016 bonus

News in brief:

“Mystery bonus” when you buy Avios

British Airways is offering a random bonus of between 15% and 30% when you purchase Avios points between now and 23rd March.

To find out what bonus you are getting, you need to visit the ‘buy Avios’ page on here and log in.  I was offered the maximum of 30%.

Unless you have a very specific plan for the points, I don’t recommend jumping in at this price.  I don’t get interested unless I’m paying under 1p.  However, if you need to top up your account for a specific redemption you have in mind, this deal is certainly better than nothing.

Alex Cruz loses his bonus

According to reports in the Spanish press, British Airways CEO Alex Cruz will receive no bonus for 2016 due to his role in the Vueling debacle last summer. 

Vueling, IAG’s low cost airline based in Barcelona, was forced to cancel hundreds of flights during the peak season.  Rapid expansion meant that it had scheduled flights but ended up not having enough staff to operate them, especially co-pilots.  The departure schedule also proved to be too inflexible to cope with any sort of delay, including frequent French ATC strikes.

The Spanish article is here and a translation (thanks Anna) is below:

Alex Cruz, the Spanish CEO of British Airways, will not receive a bonus for 2016 from the IAG airlines group. The company said in a statement to the National Stock Market Commission that he will be the only one of the 12 senior executives not to receive a bonus. 

The bonus is paid half in cash and half in the right to a percentage of shares in the company which can be deferred by up to three years, meaning that they can be awarded any time until 2020. Additionally, these executives entitled to a performance-linked action plan based on a series of targets and linking with managers of IAG, explains El Confidencial [a Spanish online newspaper].

The bonuses will range from €93,670 payable to staff chief Julia Simpson to €651,672  payable to William Walsh, CEO of the parent company. Cruz, who has held one of the highest positions in the group since last April, will receive nothing. Iberia’s president, Luis Gallego, will receive over €335,000, and the president of Vueling, Javier Sanchez Prieto, €190,919.

It’s worth remembering that last summer Sanchez Prieto lived through Vueling’s worst crisis in 11 years, when the airline was on the brink of collapse due to delays and cancellations. At that time, the president of the low cost airline blamed his predecessor, Alex Cruz, for the problems. 

Thanks to Andy.

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  1. Waribai says:

    Ok, can we read into this that his days at BA may be numbered then?

    • James67 says:

      Doubt it, he’s probably now looking for 2 cost saving measures per day at BA to ensure he doesn’t miss out this year. What is odd about this is why he got the job at BA if they considered him responsible for the Vuelling debacle.

      • insider says:

        Cruz was in the job at BA before the Vueling troubles hit. It was only after the problems started that they realised he had set up the airline in a bad way

  2. Mikeact says:

    Hopefully, he’ll be so upset at loss of bonus, he’ll resign and move on.

    • Lady London says:

      Well he might say that anyway. In investment banking this would be a slap across the face.

  3. Salary enhancement.

  4. the real harry1 says:

    15% offer, rotten lot

    & still no Laithwaites points but they did say wait 14 days

    • I got 30% from BA, (though I am lowly blue who does no business travelling!), but were only offering 15%. I did buy a few thousand from BA as I see it as a bit like a holiday savings account which will ultimately boost the value of my companion voucher, if that makes sense!

    • 30% from BA
      0% from Avios

      Why send me an email with a link to “find my bonus” to find it is 0%

      • 0% from too!

        Why make you type in your name, email and account number – which were all in the email inviting you to purchase -and then give you nothing?

        Never bothered to check

        Still convinced BA maintain their aircraft properly, but – you know – it is getting like a restaurant with grubby menu cards. You wonder how clean the kitchen is?

  5. Cruz has taken British Airways to now mean Bloody Awful. And he isn’t done yet with his drive to bring BA down to the likes of other low cost carriers. The Royals should remove their seal as it is embarassing to be associated with what was such an iconic airline.

    Sure – times change and businesses have to evolve with the market. But he has taken what was already not a too-bad airline and is effectively dismantling it day-by-day. Sad to see this happen right in front of our eyes!

    • Dave R says:

      BA don’t have the seal (Royal Warrant). The BA crest just looks similar.

      This was discussed on FT a while ago.

    • Callum says:

      I’ve heard/read this repeated constantly for the last 5 years or so. “BA is at a new low! These fools have no idea what they’re doing – mark my words, they’ll collapse any day now!” – yet the profits still keep rising.

      Isn’t it about time that people start realising that while the airline may not be a good fit for them any more, but it’s clearly a good fit for the market it’s operating in?

        • the real harry1 says:

          Interesting article – it’s true for us (on our usual route) that BA is now nearly always cheaper than many LCC options – I mean the HBO fares – though of course I usually pay even less because of RFS redemptions – luggage swings it on RFS – T-355 helps get cheap fares – the LCCs don’t even offer T-355 for the most part

        • Arun T says:

          Was about to post this myself…

          I think the tide is beginning to turn on public perception on BA. Whilst most of here are fully aware of cost cutting that has taken place – the general public still largely believe as a “national carrier” that is represents a premium, step up over most other airlines. However, I think generally this is now (slowly) starting to change.

        • the real harry1 says:

          not sure you can call it premium

          BA flies from LHR, which is positive, nothing wrong with regional airports though

          aircraft are well-maintained – but no different to European LCCs

          luggage offering still better on the whole – pointless own-goal on refusing to check through BA-BA different PNRs, sack the person responsible

          truth be told Ryanair is the big growth success story, EasyJet is doing well, Wizz is the new kid on the block & going great, if that ain’t the ballsy upstart Norwegian – and BA is the gaga granny in the corner with the saggy bottomed trolley dollies

    • Czechoslovakia says:

      Sat in 1F of an LH bird at MAN the moment, specifically due to all of BAs enhancements. I wish BA luck, but I’ve voted with my wallet.

  6. No bonus? Surely making head of BA was his bonus. This is smoke and mirrors and his reward for messing up Vueling was the BA job. Of greater concern is the bonuses to JS and WW. How can these be possibly be justified.

  7. Richard says:

    Does anyone know whether buying Avios counts towards the SuperBoost balance?
    I’m 3000 short of a 12k SuperBoost!

    • What is a SuperBoost?!

      • A targetted promotion which offered you a bonus of x,000 Avios if you collected y,000 Avios inside a certain time frame. It is an rather than BA deal.

        • x,000? My top ‘superboost’ is a whopping 400 points! (but then I hardly credited anything to so my balance was in the hundreds whereas by BAEC Avios balance is well over a million but that doesn’t count).

    • Nate1309 says:

      Before I hit my target, it showed a link to buy Avios to help get there, so I am assuming it will work.

  8. Forgive me for being cynical, but it says he’s getting no bonus ‘from IAG’. Could that mean he’s still getting one, just for. BA?

    • insider says:

      No – all the CEOs of the operating airlines are employees of IAG, not the operating companies themselves

  9. My wife has 123 account- is she eligible for the offers? If so – where to look for them (never heard of them!)? Thanks!

    • Just be careful as you are not protected using a debit card

    • The offers vary but they normally have a Hilton and a Waitrose offer.

      Don’t do what I do and activate the waitrose offer only to buy a £3 sandwich without thinking

      When I log in its on the right side about half way up called Retailer Offers.

  10. I wasn’t aware of last year’s Vueling crisis as I’ve never used them. The article linked to the one Rob’s published says that delayed passengers were stripping naked in the airport terminal to get attention! That’s an interesting thought for T5….

    • insider says:

      the problems were caused by a lack of any resilience in the schedules (ie trying to do too much with the aircraft) – air traffic control strikes in particular across Europe set off a chain reaction which ended up with aircraft and crews out of position leading to hundreds of delays and cancellations

  11. @mkcol says:

    I also was offered 30% for Avios. Not buying, as no need.

    Email today from IHG offering “up to 80% more” when buying their points. Not sure that’s quite good enough, I think 100% bonus is where it becomes worthwhile. Thoughts? I only have 1 specific redemption in mind currently.

    • I reckon a 100% bonus will be here before long, but if you want to lock in a room 80% is better than nothing.

  12. Johnny says:

    Great to hear Alex Cruz missed out – he deserves zero for all the pain he puts customer through just to save himself a quick buck. He’s probably the worst CEO out there when it comes to public perception.

    • James Hogan from Etihad is equally abysmal. No one should be fooled with “what a great airline he has built from nothing”. Utter nonsense. Anyone with an open chequebook from the government could have spent money like a drunken fool. What would have made him a west CEO is making Etihad a customer-focused profitable airline.

      Something goes wrong with your flight on EY, god help you. Profitable? Alitalia. Air Berlin. No more required to be said.

  13. IanMacK says:

    I couldn’t agree more with Paul @07:47 regarding bonuses to JS and WW.
    It’s just not credible that a promotee gets zero bonus in his new position for something he did whilst in his last job. AC must be on a sticky wicket now and he is probably under even greater pressure to deliver hence the strategy for BA. (Most job hoppers within the same company get lucky and their past job disasters never catch up with them – maybe not this time !!).
    You would think that a publicly quoted organisation like IAG would have defined bonus performance metrics that would be visible to RemCo at least. Presumably the financial consequences of AC at Veuling didn’t make too bad an impact overall on IAG that WW still earned a nice bonus.

  14. Maybe he woke up one morning with another cost cutting measure.

  15. Regarding Alex Cruz, I pointed this out earlier. He left Vueling in shambles. Basically when Mr Alex Cruz left Vueling he set in motion huge plans of expansion without planning them properly. this meant they had a domino effect of flights and routes all over the summer. They were threatened by the Catalan Govt, and their right to fly from BCn was nearly suspended (They had lied to customers and not paid them EC261 compensation). Since the Catalan govt intervened, I have heard that everyone including me got the EC261 compensation without issues.
    Lastly, I’d take this time to point out that Alex Cruz has led both Vueling and Gold Car (advisor, but with a lot of influence), both had abysmal Customer care under him, so much so that Gold car has not recovered the petty and sly image it has. Vueling, thanks to the intervention of the Catalan Govt HAD to. I believe they paid nearly 6-8% of their operating profits last year in fines.
    This makes me believe that BA is only going to go down as a brand. Which is sad, though I never thought it was a good product myself, always opting for a stopover Qatar, Malaysian or CX option if possible. Even picked AA to fly to the states instead of the BA option from BCN.
    Lastly, this points me to the way current day CEO’s are targeted and rewarded. For once I am glad that he was denied his bonus and CEO’s are being held accountable for future performance of companies they are currently leading. Though I fear dark days for BA in the future.

    • How does someone like that carry on being employed in CEO capacity?

      • the real harry1 says:

        I think it’s because despite the headlines, BA/ IAG’s finances are deeply in the doo-doo, because of legacy issues mainly ie overpaid staff, pension deficit & ageing fleet

        So the board is forgiving to a CEO who can obviously make short-term improvements to the P&L a/c & the balance sheet – despite ruining the company in the medium term, they don’t care, they won’t be there