A spokesman for Iberia expressed surprise yesterday at a suggestion by the Minister for Public Enterprise that the Spanish national airline was considering taking a stake in Aer Lingus.
"It is the first we have heard of it in Madrid," she said. "It seems highly unlikely that Iberia would take on a share in another company in these difficult times, even if it is a partner in the One World organisation," she said.
She said the company had only recently managed to sell off the loss-making Aerolineas Argentina to a consortium led by the travel company Viajes Marsans, and its share in the regional airline, Air Mediterraneo, and would be reluctant to take on a further burden until its financial situation improved.
Like all airlines Iberia has lost business since September 11th and is relying on the short term EU rescue package to tide it over.
Iberia's shares have fallen by more than 6 per cent on the Madrid stock exchange and the company has reported a drop of 18 per cent in bookings.
Iberia president, Mr Xabier de Irala, announced major cutbacks on October 12th, aimed at reducing operating costs by some 15 per cent, to face the current crisis. He told staff that around 2,800 workers would be laid off from November 1st, and that 11 per cent of flights would be cut from the timetables.
Iberia plans to reduce around 50,000 flying hours, mainly by cancelling flights between the Spanish Peninsula and the Canary and Balearic Islands, although other cancellations will include regular flights from Madrid to the Middle East and Germany. The daily service between Barcelona and New York has been cancelled, as has the Delta Airlines service to Miami, and for the first time for many years there will be no direct flights from Barcelona to the US.
The company has also cancelled its "wet lease" contracts, whereby smaller airlines lease planes and crew to larger firms. These will include the use of six Boeing 757s belonging to the Spanish company Air Europa and a further two Boeing 747s from Icelandic company Air Atlanta, used mainly on flights to the Canary Islands and Cuba. The loss of the 757s will cause problems with services since the airline lacks sufficient pilots with the qualifications to fly these 500 seater planes.
A sign of the gravity of the situation is the fact that the notoriously militant Iberia pilots have offered their co-operation to the airline.
