Last year the Spanish airline Iberia Airways made a profit of 21 million euros .This year during the same period they have recorded a loss of 72.8 million euros.
They have now decided to create a new airline which will be operational in 2011and will handle the short and medium routes carried out at the moment by iberia.There is no name for the company at the moment.They will carry people across Europe into Madrid.Iberia will focus on the more profitable long haul routes.It claims to be the market leader between Europe and Latin America.
Plans to cut costs include a freeze on wages,cutting back on new employees,laying off cabin crew who are over 55 plus further laying off of ground crew.This will save them 37 million euros a year.It also intends to re-launch its business class with more agressive marketing towards small businesses,ethnic groups,tour operators and other groups which may generate more income. There are those who will say ,as members of the public,that travelling with Iberia is just too expensive and when they are quoted 700 euros for a flight from Heathrow to Alicante via Madrid which will take them twice as long as Easyjet and costs about six times more then it is little wonder that the financial status is so poor.That would be the view of a man in the street.
