Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

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LJ
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by LJ »

MR_Boeing wrote:On the long haul network they made (in my opinion) the crucial mistake not to go with a more efficient aircraft like the A330 already years ago. Now they have the A333 on order, but it's comming too late. Now they have about the least efficient long haul aircraft (and in some cases too big for them) and their cabin is outdated (something you don't want with the increasing capacity on the Europe- Latin American market).
There is a fierce debate going on at airliners.net if this is really the case as the early 330s couldn't operated effeciently out of MAD. The new generation could, but I recall that they always postponed any decision due to the fact that the 340s were making a lot of money (untill 4 years ago IB was printing money on their Latin American network). Only after the emergence of Air Madrid they started to loose ground (Air Madrid was dumping capacity on the most important routes ex MAD which IB matched with unbelievable low fares). The role of Air Madrid has been taken over by UX, which seem to do a better job than Air Madrid.
MR_Boeing wrote:Agreed, though things aren't made easy for them. AMS, ARN and TXL are heavily loss making routes and their contribution to the long haul network is not enough to justify the operation of these routes


If you can't make AMS work than you're doing something wrong. Though traffic is down considerably on the route due to the crisis in Spain, it's strange that UX is able to get into this market and oust IB out of AMS-MAD. Moreover, not long ago IB dominated AMS-MAD. Will be intersting what will happen on BRU-MAD when UX starts this route (isn't the first flight in one week?). If UX also succeeds at BRU, I fear that UX will do even more to make life for IB difficult in Europe and Latin America.

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RoMax
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by RoMax »

LJ wrote: If you can't make AMS work than you're doing something wrong. Though traffic is down considerably on the route due to the crisis in Spain, it's strange that UX is able to get into this market and oust IB out of AMS-MAD. Moreover, not long ago IB dominated AMS-MAD. Will be intersting what will happen on BRU-MAD when UX starts this route (isn't the first flight in one week?). If UX also succeeds at BRU, I fear that UX will do even more to make life for IB difficult in Europe and Latin America.
MAD-AMS isn't so easy as you might think. Since UX started that route you have a strong Skyteam power on that route (KL/UX), combined with the easyJet flights makes MAD-AMS a hell of a market to operate succesfully. Not just Iberia is giving up, it's also one of the routes easyJet will stop out of MAD (if that came earlier, IB may have decided to continue MAD-AMS, but it's too late, AMS is a lost market for IB...).

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RoMax
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by RoMax »

As already said before (I don't know if Iberia confirmed all of it), Iberia will stop flying to Havana (5 weekly), Montevideo (4 weekly), San Juan (3 weekly) and Santo Domingo (daily). These routes will stop at end of this winter season (so as from 31 March these will not be served any longer).

That's a reduction of 16 weekly long haul flights/rotations (San Juan is operated in combination with Santo Domingo, 3 times a week).

http://airlineroute.net/2012/12/08/ib-s13update1/

sean1982
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by sean1982 »

that's strange, I thought South America was their bread and butter?

cnc
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by cnc »

was, they are loosing ground and costs are rising

globetrotter
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by globetrotter »

Also dropping Istanbul around the same time as the latin routes.

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RoMax
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by RoMax »

globetrotter wrote:Also dropping Istanbul around the same time as the latin routes.
Yes I believe they'll stop (in the period January-March) flying to Amsterdam, Berlin, Stockholm, Istanbul, Montevideo, San Juan, Santo Domingo and Havana.
Did I forget some? I believe I also heard Cairo was a possible casualty.

LJ
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by LJ »

MR_Boeing wrote:As already said before (I don't know if Iberia confirmed all of it), Iberia will stop flying to Havana (5 weekly), Montevideo (4 weekly), San Juan (3 weekly) and Santo Domingo (daily). These routes will stop at end of this winter season (so as from 31 March these will not be served any longer).
But they intend to increase capacity to other long haul destinations next year (nothing said other that it can be Mexico, Central America, Chile, Ecuador or Brazil). Morever, they'll increase capacity to Dakar (SN will be pleased), Malabo, Nouakchott, London, Casablanca or Algiers. However, i would like to see a more concrete plan if they've reduced the fleet and at the same time increase long haul capacity.

BTW UX will be pleased they'll have MAD-SDQ all to themselves and on MAD-HAV only have to deal with CU (AFAIK they still fly MAD-HAV). I wonder if UX would consider leasing an additional A330 to open a new destination to compete with IB.
MR_Boeing wrote:Did I forget some? I believe I also heard Cairo was a possible casualty.
Yes, this one is also a casualty (as can be read in their press release).

http://grupo.iberia.es/portal/site/grup ... fe15acRCRD

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RoMax
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by RoMax »

LJ wrote: But they intend to increase capacity to other long haul destinations next year (nothing said other that it can be Mexico, Central America, Chile, Ecuador or Brazil). Morever, they'll increase capacity to Dakar (SN will be pleased), Malabo, Nouakchott, London, Casablanca or Algiers. However, i would like to see a more concrete plan if they've reduced the fleet and at the same time increase long haul capacity.
I believe they'll focus on certain strong destinations, while reducing others. Otherwise you can't unite this with the fact that they are goint to reduce capacity both long haul as short haul (I don't remember the exact numbers but I believe it was something like 15 and 21% respectively)

(btw, SN will increase Dakar again from 4 weekly to 6 weekly, though again in combination with Freetown and Conakry, so total capacity probably doesn't really increase)

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RoMax
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by RoMax »

Athens is another casualty.
So now we have on short/mid-haul:
- Amsterdam
- Stockholm
- Berlin
- Cairo
- Istanbul
- Athens

And long haul:
- Havana
- Montevideo
- Santo Domingo
- San Juan

...

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RoMax
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by RoMax »

LJ wrote: BTW UX will be pleased they'll have MAD-SDQ all to themselves and on MAD-HAV only have to deal with CU (AFAIK they still fly MAD-HAV). I wonder if UX would consider leasing an additional A330 to open a new destination to compete with IB.
I don't know for their fleet. But Air Europa will increase frequency to Havana and Santo Domingo from daily currently (for both routes) to 11 weekly (also for both routes).
http://airlineroute.net/2012/12/13/ux-havsdq-s13/

An airline from Uruguay is said to launch flights between Madrid and Montevideo with 767 aircraft (daily) in codeshare with Iberia.

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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by sn26567 »

Iberia announces 3,800 redundancies

Iberia has taken the first step in its restructuring plan by formally announcing job cuts of 3,800.

A formal 30-day consultation process with employees, unions and the country’s employment ministry has started which would affect 3,807 jobs at the airline.

The move comes just two weeks after Iberia and its unions failed to agree a deal on how to restructure Iberia and return the airline to profitability.

Unions representing Iberia’s cabin crew and ground staff have already announced a series of three five-day strikes – the first of which takes place from February 18-22.

Details from Buying Business Travel
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sn26567
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Re: Iberia to axe 4,500 jobs, reduce fleet by 25 aircraft

Post by sn26567 »

Iberia strike to ground hundreds of flights

Workers at the Spanish flag carrier Iberia are set to begin a five-day strike today, potentially grounding over 1,000 flights and costing the airline and the struggling national economy millions of dollars.

Staff, including baggage handlers, pilots and air stewards, will hold three five-day strikes in February and March to protest plans to cut more than 3,800 jobs and reduce salaries at the airline.

Iberia has cancelled 415 flights between Monday and Friday, although a total of around 1,200 flights operated by various airlines will be grounded because of the lack of handling services at Spanish airports.

The airline said 70,000 passengers would be affected by the first strike, and that it had placed some customers on different flights, including those operated by different airlines, while proposing refunds and alternative travel dates for others.

See dedicated thread in this forum: viewtopic.php?f=7&t=49900
André
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