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Spanish Iberia Airline To Cut 1,000 Jobs

Posted in Airline News, Iberia AirlineNo comments

Spanish airline Iberia, which is discussing a tie-up with British Airways,
plans to cut 1,000 jobs as part of a three-year plan from
January, a Spanish
newspaper reported on Wednesday.
The cuts, which would be on a voluntary basis, would affect more than 10 per cent of its handling unit of around 9,000 people under a 2009-2011 plan the airline plans to announce in the coming days, the newspaper Cinco Dias said.
The airline predicted seat capacity would drop by 1.0 to 2.0 per cent during the period, including a fall of 7.0 per cent on domestic routes and 5.0 per cent in European routes. Capacity on intercontinental routes, mostly to the Americas, would rise 1.0 per cent.
Iberia, which has a total of workforce of about 17,000 employees, said last month that its third-quarter earnings plunged nearly 80 per cent due soaring fuel prices and weak demand.
British Airways said on Tuesday that its tie-up talks with Iberia were continuing, as it explored “a potential merger” with Australian rival Qantas Airways as part of a broad tie-up in the struggling aviation sector.
On the Madrid stock market, Iberia shares were down 5.29 per cent at 1.97 euros at around 0950 GMT in a market that was off 1.65 per cent.

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