Iberia proposes new handling company with 1,700 job cuts

Spanish airline Iberia has proposed creating a new handling subsidiary, which would be 100% owned by IAG, Iberia's parent company. 

While working conditions for staff retained would be unchanged, Iberia said on Monday, the "viability plan" of the new company would mean 1,727 jobs cut by 2026, between incentivized layoffs and early retirements. 

According to Iberia, it is an "opportunity to forge a solid future and become one of the international benchmarks in handling," after the company lost a handling tender for eight airports in Spain, including Barcelona. 

Iberia canceled 444 flights over the festive period due to a strike from ground staff, which also caused problems with hundreds of bags at three airports. 

Over 1,700 layoffs proposed

The airline explained in a statement how it hopes to achieve the 1,727 job cuts. Firstly, with incentivized layoffs for staff under the age of 56, and and early retirements, for staff aged 56 or over.  

All Iberia staff retained in the new company would keep the same job conditions as they currently have. 

The newly created company would have a new brand and "real and viable possibilities to develop and expand," Iberia said, with a training center for staff located next to Adolfo Suárez-Madrid Barajas Airport. 

In the statement, the company said that it understood "the uncertainty that workers are experiencing," but said that remaining in the current company was not necessary to guarantee a future for workers, both in airports where it won tenders and in those where it did not. 

"This is an opportunity to forge a solid future and become one of the benchmarks in international handling. The new company is the vehicle to make the business viable, without detracting from the rights of any Iberia staff member," the statement said.