LONDON (ShareCast) - International Consolidated Airlines Group (known as IAG) may ask its Spanish airline Iberia to stay firm on a tough cost-cutting programme.
According to Spanish daily El Economista, IAG will provide a framework for Iberia to stay on course in a board meeting scheduled for Thursday.
It is speculated that the group may be concerned by a new 'Plan B' presented by Iberia to its labour trade unions. The plan consists of reducing lay-offs from the initial 4,500 to 3,800.
IAG does not want to enter directly into talks with labour unions, but is calling on the Spanish airline to achieve structural cost savings of at least €350m a year.
When the initial restructuring plan was announced on November (Xetra: A0Z24E - news) 9th, there was an initial deadline of January 31st. Although Iberia has stated that the deadline is not strict, an upcoming board meeting is expected to be the last before an official restructuring announcement.
LS (KSE: 006260.KS - news)