Iberia restructuring to tackle maintenance and handling

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Iberia will cut non-profitable aspects of its maintenance and ground handling operations as part of its concentration on core activities under wide-ranging restructuring plans.

"We will discontinue the parts of maintenance that are not profitable," said Iberia chief executive Rafael Sánchez-Lozano during a conference call on 9 November.

Similarly he says it will also cut non-profitable operations among its handling business, which cover airports across Spain including many Iberia does not serve.

"We will discontinue handling activities outside of Madrid unless they are profitable," says Sánchez-Lozano. He explains that many of the handling licences in Spain are due for renewal next year, so now is the time to decide which ones it can profitably retain. "Our proposal [to unions] is we will renew the licence if it is profitable. If it isn't, we won't."

Iberia parent International Airlines Group has detailed plans for a major restructuring at the Spanish carrier, which includes the cutting of 4,500 jobs, 25 aircraft and 15% of capacity next summer.