“Massive staff layoff” at Iberia; Vueling takeover

Up to 7,000 job losses feared as part of restructuring

Up to 7,000 job losses may be revealed at Iberia on Friday as part of a restructuring plan, according to unions. The revelation follows news earlier in the week about the distance between positive growth at British Airways in 2012 and the decline in traffic at fellow International Airlines Group company Iberia. The Spanish carrier is continuing its shift of short and medium haul routes to its new LCC Iberia Express. Unions expect layoffs of between 4,000 and 7,000 employees. Iberia reported an operating net loss of €263 million in the first half of 2012.
“We have been summoned for Friday,” said a spokesman for CTA, a union for ground handling staff at Iberia covering around 20,000 employees, “and the only thing we know is that they want to announce a massive staff layoff plan.”
Meanwhile, it is being reported that IAG is thinking about a full takeover of the Spanish low-cost carrier Vueling at the same time as it prepares a mass layoff of staff at Iberia. Vueling has a market capitalisation of €171 million.
[photo courtesy oneworld]