Iberia to cut staff and freeze wages next year

7th October 2005, Comments 0 comments

7 October 2005, MADRID — The directors of Spanish airline Iberia are to lay off workers and freeze wages from next year.

7 October 2005

MADRID — The directors of Spanish airline Iberia are to lay off workers and freeze wages from next year.

Iberia sources consulted by EFE avoided specifying how many people would be cut from the airline's current 26,000-strong workforce.

Iberia has set itself 10 strategic objectives for the 2006-2008 period, including maintaining a profitable operational network, achieving broad-based growth and boosting business-class sales on long flights.

Other priorities are reducing costs, upping efficiency and squeezing more productivity out of available resources.

Union officials told EFE that Iberia workers will study the plan "calmly," though they find it "difficult to accept wage cuts when the company is still making handsome profits".

Iberia closed 2004 with some of the best results in its history, including a 52.4 percent increase in profits to EUR 219,988,000 from the EUR 144,372,000 the previous year.

In contrast, in the first half of the year net profits dropped 53 percent because of rising fuel prices. EFE

[Copyright EFE with Expatica]

Subject: Spanish news

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