IAG Starts Consultation for Iberia Job Cuts in Push for Profit

Iberia parent IAG SA (IAG) said it plans to start negotiations with workers and union representatives to push through 1,581 jobs cuts laid out earlier this year that are aimed at turning around the Spanish subsidiary.

The process was discussed during negotiations with unions in April, London-based International Consolidated Airlines Group SA said in a statement today. The company said it is seeking to “introduce permanent structural changes” at Iberia to return the airline to profit.

Chief Executive Officer Willie Walsh has pushed through 3,000 reductions at Iberia and scrapped the worst-performing routes while adding capacity at sister carrier British Airways as he targets a 1.8 billion-euro ($2.45 billion) operating profit by 2015. Iberia sealed the last of three pay deals in March, locking in the support of pilots, ground-handling staff and cabin crew.

To contact the reporter on this story: Kari Lundgren in London at klundgren2@bloomberg.net

To contact the editors responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.