Ansett's chief off to London

Rod Eddington, earlier considered to be in the running for the top job at a merged Air New Zealand-Ansett Australia, will instead become British Airways next chief executive.

Seen as one of the most successful airline chiefs in the Asia-Pacific region, Mr Eddington headed Cathay Pacific before moving back to his native Australia in 1996 to become executive chairman of Ansett, with a mission to turn the ailing airline around.

His departure for London has forced Ansett's joint owners, Air New Zealand and News Ltd, to appoint a temporary chief executive until the formalities of Air New Zealand's takeover of the Australian airline are tidied up some time in the next two months.

Air New Zealand's managing director, Jim McCrea, and News Ltd chairman and chief executive Lachlan Murdoch have named Craig Wallace, Ansett International's general manager, to do the job.

Mr Eddington, aged 50, will replace Robert Ayling, whose troubled reign at British Airways came to an end with his resignation in March. British Airways, which has a 25 per cent stake in Qantas, is expected to post its first full-year loss since privatisation for the 1999-2000 financial year, and Mr Eddington's most immediate task will be to repeat his successes at Ansett and return British Airways to profitability.

``I feel privileged to be given the opportunity to lead this great company,'' Mr Eddington said.

``British Airways has a fine, professional workforce with a strong focus on customer service.''

One of Mr Eddington's first jobs will be to cut routes and reduce staff numbers by 10 per cent, or 6000 people.

British Airways chairman Lord Marshall, who stood in as chief executive during the search to fill the $NZ1.45 million a year post, said Mr Eddington was known throughout the aviation industry for his leadership skills.

Mr Eddington is also deputy chairman of News Ltd, where he was a mentor to Lachlan Murdoch and was expected to succeed him as head of local operations.