Arab Today, arab today iberia to axe 4500 jobs to keep airborne
Last Updated : GMT 01:38:25
Arab Today, arab today
Arab Today, arab today

Iberia to axe 4500 jobs to keep airborne

Arab Today, arab today

Arab Today, arab today Iberia to axe 4500 jobs to keep airborne

London - AFP

Loss-making Iberia on Friday announced plans to axe 4,500 jobs to save Spain\'s biggest airline from collapse and warned more cuts could follow against the backdrop of economic crisis in the eurozone country. \"Iberia is in (a) fight for survival,\" Iberia\'s chief executive Rafael Sanchez-Lozano said in a statement issued by parent group International Airlines Group (IAG), which also owns profit-making British Airways. Iberia \"is unprofitable in all its markets. We have to take tough decisions now to save the company and return it to profitability,\" said Sanchez-Lozano. \"Unless we take radical action to introduce permanent structural change the future for the airline is bleak. However this plan gives us a platform to turn the business around and grow,\" he added. Sanchez-Lozano said \"the Spanish and European economic crisis has impacted on Iberia, but its problems are systemic and pre-date the country\'s current difficulties.\" IAG said it was announcing \"a comprehensive plan to save Iberia after record losses -- and return it to profitability.\" The parent group unveiled a \"reduction of 4,500 jobs to safeguard around 15,500 posts across the airline\" -- meaning Iberia was on course to lose almost one quarter of its staff.IAG added that a deadline of January 31, 2013, had been set to reach agreement with unions over the cuts. \"If agreement is not reached, deeper cuts and a more radical reduction in the size and scale of Iberia\'s operations will take place to secure the natural long haul traffic flows at Madrid and safeguard the company\'s future,\" IAG said. In a bid to stem Iberia\'s cash losses by mid-2013, the Spanish airline would slash its network capacity by 15 percent and downsize its fleet by 25 aircraft, including five long-haul carriers. \"Iberia has many advantages. It has an excellent geographical position to serve Latin America, along with historical ties; a strong brand and the ability to grow long term at it hub,\" the airline said. Separately on Friday, IAG announced that the parent group\'s net profits dropped 24 percent in the third quarter compared with the equivalent period last year, hit by losses at Iberia. It said in an earnings statement that profit after tax fell to 202 million euros ($258 million) in the three months to September 30 compared with net profit of 267 million euros in the third quarter of 2011. IAG added that Iberia had made an operating loss of 262 million euros in the nine months to September 30, offsetting an operating profit of 286 million euros at British Airways. \"We want Iberia to be strong and successful,\" IAG chief executive Willie Walsh said on Friday. \"This turnaround plan is critical for Iberia and for the future of Spain. A strong and profitable Iberia can create jobs and boost tourism, a key driver in Spain\'s economic recovery.\" Spain\'s economy is wilting as its government\'s austerity programme chokes consumer spending amid the country\'s deep recession that has pushed its unemployment rate above 25 percent And the eurozone\'s fourth-largest economy is hovering on the edge of a sovereign bailout, after already securing a eurozone rescue loan of up to 100 billion euros for its banks. Walsh on Friday added that IAG would not \"hesitate to take the necessary steps to protect the interests\" of its shareholders. In early trading, shares in IAG jumped 1.19 percent to 170 pence on London\'s benchmark FTSE 100 index, which was down 0.23 percent at 5,762.80 points. \"If IAG can achieve its restructuring goals and successfully acquire (Spanish low-cost airline) Vueling, the outlook for 2013 and beyond is quite positive,\" Goodbody stockbrokers said in a note to clients. Friday\'s developments came a day after IAG said it had launched an offer for full control of Vueling Airlines -- which is already almost half owned by Iberia -- for 113 million euros. It comes as Vueling looks to expand its network to a total of 100 airports, with London and Frankfurt among the new destinations. BA and Iberia merged in January 2011 in a tie-up aimed at slashing one another\'s costs, as a sharp economic downturn and rise of low-cost competitors sparked steep losses for traditional carriers. Irish no-frills airline Ryanair this week announced a 10-percent jump to its interim net profits, causing the Dublin-based carrier to lift its annual earnings forecast.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today iberia to axe 4500 jobs to keep airborne Arab Today, arab today iberia to axe 4500 jobs to keep airborne

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 11:47 2017 Wednesday ,22 February

Toshiba skyrockets over 22% on chip unit sale hopes

GMT 11:31 2017 Wednesday ,22 February

Bayer says Monsanto deal on track, eyes record 2017

GMT 10:49 2017 Wednesday ,22 February

Airbus says profits hit by military plane woes

GMT 06:43 2017 Wednesday ,22 February

LuLu festival offers a taste of Egypt

GMT 06:11 2017 Wednesday ,22 February

Russia’s Rosneft, Libya’s NOC sign oil offtake deal

GMT 05:49 2017 Wednesday ,22 February

‘PSA to honor Opel job guarantees’

GMT 05:41 2017 Wednesday ,22 February

BHP to Trump: Protectionism will hurt growth
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday