LONDON (AP) — International Airlines Group, which owns Spanish carrier Iberia, says it will go ahead with its staff cut plans after talks with labor unions failed to reach an agreement.
IAG, which groups together British Airways and Iberia, had set Friday as the deadline for unions at Iberia to come to terms with the restructuring plans, aimed at restoring the airline to viability. The group said Iberia would press ahead with a 15 percent capacity reduction this year. It said it aims to return the operating cash flow for the carrier to break-even by the second half of the year, and added that it hoped to restore Iberia to an "acceptable level of profitability" by 2015.
IAG reported in September that Iberia's nine-month losses ate up most of the profits from BA.