LONDON, Jan 9 — Willie Walsh, the chief executive of British Airways-owner IAG, will step down from the airlines group he helped to build later this year and hand the reins to a key lieutenant, Luis Gallego.

Walsh had said in November that succession planning was underway as he intended to retire in the next two years. He will be replaced by Gallego — the CEO of IAG-owned Iberia since 2014.

Walsh has been CEO of IAG, which comprises British Airways, Iberia, Aer Lingus, Vueling and other airlines, since its formation in 2011, overseeing the original merger between BA and Iberia, and then growing the group by acquisition since.

IAG chairman Antonio Vazquez said that Luis was the right candidate to lead IAG in the next stage of its development, while Walsh also gave the appointment his blessing.

"Luis has been a core member of the team and has shown true leadership over the years and I have no doubt he will be a great CEO of IAG,” Walsh said in a statement today.

IAG said that Walsh would step down from his role and the board of IAG on March 26 before retiring on June 30, 2020. — Reuters