Iberia problems

IAG-owned Iberia is losing ground to rivals on its prized routes to Latin America and, because it is unable to close the gap, it may change some services or stop flying them temporarily according to a Reuters’ report.

"At the moment we are not competitive and we cannot defend the market share we have", Chief Executive, Rafael Sanchez Lozano, said on Friday in a radio interview. 

Iberia controls around 20% of all routes to Latin America from Europe, but was not capable of protecting its position the CEO said. 

As previously reported by Business Travel News, Iberia, in the middle of a restructuring, said this month it will cut a quarter of its staff, or 4,500 workers, to stop losses.

Established in 1927 and privatised in 2001 Iberia currently has a fleet of 67 Airbus A320 series (with 19 more on order) and an astonishing 34 gas guzzling Airbus A340 series.

With a long time bad industry image it is also not a Skytrax Quality Approved airline, especially given that between 2007 and 2012 its service rating fluctuated between two and three stars, well below that offered by other European airlines' cabin crews. www.iberia.com

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