Marshall quits as BA plunges

PROFITS at British Airways - where chairman Lord Marshall has announced he is quitting after 20 years - have plunged 80%.

Marshall's successor will be Martin Broughton, 56, executive chairman of cigarettes giant BAT.

His decision to give up a 30-year career at BAT pre-empts a potentially damaging corporate governance row as the Higgs guidelines on appointments forbid becoming chairman of two top companies.

The directors' merry-go-round takes place next summer after the two companies' annual meetings.

Marshall is stepping down at the age of 70 - some say he has stayed too long - while Broughton is being succeeded as chairman of BAT by non-executive Jan du Plessis. Broughton's protege, managing director Paul Adams, becomes chief executive.

Marshall has been at the helm of BA for 20 years, first as chief executive prior to privatisation and then as chairman since 1996.

Broughton, BA's senior non-executive for the past year, will initially become deputy chairman. He said: 'Leaving BAT after over 30 years will be a strange feeling. After 10 years at the top its hard for me to hand over.'

With BA's American and business class customers still resolutely refusing to travel in any great numbers, the airline reported pre-tax profits of £60m for the first half of its financial year to the end of September against £310m last time.

For its key summer months - July and August - profits were down by more than half, at £105m against £245m. Chief executive Rod Eddington said: 'It's been a difficult quarter.'

BA shares today opened at an 18-month high at 224p, putting a market capitalisation of nearly £2.5 billion on the company.

The shares - already struggling after 9/11 - plunged to an all-time low of 86p in March.