London — Willie Walsh, who took the helm at British Airways in 2005 and built it into the European airline giant IAG, will step down and be replaced by the head of the group’s Spanish unit.

Walsh will leave the CEO role and the board in March and formally retire at the end of June, IAG said on Thursday. He had signalled in November he would depart within two years. Iberia chief Luis Gallego will succeed him...

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