JOC Staff | Feb 01, 2013 12:49PM EST
International Airlines Group, created from the merger of British Airways and Iberia, has confirmed that Iberia and its trade unions have not reached an agreement regarding the airline’s transformation plan proposals, which were published on Nov. 9, 2012. Iberia therefore will move ahead with the previously announced capacity reduction of 15 percent for 2013.
IAG said it will continue with alternative plans to return Iberia’s operating cash flow to break-even by the second half of 2013, and to restore Iberia to an “acceptable level” of profitability by 2015.
“We’re disappointed that no agreement has been reached,” said Willie Walsh, IAG chief executive.
