BA boss turns down bonus as salary stays frozen

Mr Walsh, embroiled in a bitter dispute with his cabin crew, was entitled to a bonus of deferred shares awarded by the board for the last financial year, it was disclosed in the airline's annual report published yesterday.

He turned down a similar award last year.

BA also said that his salary has remained frozen at 735,000, the level it was set at in 2008.

Mr Walsh actually received 674,000 last year because he voluntarily gave up his pay for the month of July as the airline was making cost savings.

Nearly 7,000 other employees also took voluntary pay cuts.

BA said that under the remuneration arrangements set out in the annual report, no-one at the airline would receive cash bonuses for the second successive year.

The only other bonus recommended was to finance director Keith Williams, who is taking the 167,000 he is entitled to.

The figures were published as cabin crew returned to normal working after the end of their latest wave of strikes.

Members of Unite have taken 22 days of strike action since March, costing the carrier more than 150m.

Fresh talks are expected to be held between the two sides, although Unite has warned it was preparing to hold a fresh ballot for industrial action, which could disrupt flights in the busy summer months.

Writing in the annual report, Mr Walsh said: "I regret that we found ourselves at loggerheads with very valued members of staff at a critical time.

"When we have had the chance to explain our proposals directly, many understand what our agenda is really about – to secure jobs in the airline and put the business on a footing where it can achieve the growth it needs to survive long-term.

"They understand that, without change, British Airways will just shrink and shrink and shrink.

"I genuinely believe it is unfair to say we looked for confrontation.

"We negotiated these changes over the course of a year and tried repeatedly to answer concerns raised by our staff.

"Our position is clear. We've done some excellent work with the unions over the years and we're happy to work with them.

"But we can't let them stand in the way of the progress that's needed to make our airline's future more secure," he said.