Five questions answered on… the IAG-owned Iberia job losses

International Airlines Group (IAG), who owns British Airways, has announced it will cut a significant amount of jobs on its Iberia airline.

How many jobs are IAG cutting?

Around 4,500. It has set January 31 next year as a deadline to reach an agreement with trade unions on redundancies – if they fail to meet this deadline it will further reduce its capacity, AIG have warned. 

Why is IAG cutting these jobs? 

According to Iberia’s Chief Executive, Rafael Sánchez-Lozano, the airline is in "fight for survival" mode and is currently "burning €1.7m every day". This is what he told The Telegraph.

What else did he say? 

Justifying the job cuts Sánchez-Lozano added: 

It is unprofitable in all its markets. We have to take tough decisions now to save the company and return it to profitability.

Unless we take radical action to introduce permanent structural change the future for the airline is bleak. However this plan gives us a platform to turn the business around and grow.

What do the figures say? 

For the first 9 months of the year IAG reported a pre tax loss of €169m. This is compared to a €394m pre-tax profit last time. Also in the same period last year passenger revenues also grew from €10.1bn to €11.6bn.

What other airlines does IAG own? 

IAG also owns British Airways and bmi and has 398 aircraft flying to 200 destinations. It recently put in a bid to take over Spanish budget airline Vueling for €113m (£90m). The company was only formed in January 2011 and is listed on the London and Spanish Stock Exchanges. 

Heidi Vella is a features writer for Nridigital.com

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Jeremy Corbyn has defied the odds and embarrassed his critics

The pundits were wrong, writes Liam Young. 

On Tuesday I said that Labour would need time to show any drastic improvement in nation-wide elections. With the results now clear I still hold to that premise. After a scary result in Scotland, a ‘holding on’ in Wales and a rather better than expected showing in England it is clear that the public has produced a mixed bag of results. But for Labour, something very interesting has happened.

Before the results were announced pundits were predicting roughly 200 seat losses for the Labour party across local councils. Some of Jeremy Corbyn’s strongest opponents suggested that Labour would lose councils in the South owing to the anti-austerity message being viewed as irrelevant. There was also the suggestion that Labour would gain votes in the heartland of the North where it already controlled a great number of seats. It seemed that the pundits were wrong on both counts.

One thing is clear and undeniable. Jeremy Corbyn’s Labour has defied the odds at this election. It looks like the party will lose no more than 30 council seats and that its vote share on 2015 will be up by roughly 4 per cent at the expense of the Tories. People will rightly say that this is depending on the standard the results are measured by.

But I think that John McDonnell made a convincing argument last night on exactly how to judge this performance. Given that many simply want to spend time speculating about Jeremy Corbyn’s leadership it seems entirely reasonable to measure Labour’s success based on the party’s movement since he became leader. As mentioned above if this is taken as the standard Labour has increased its share of the vote and has beat the Tories after being some 14 points behind in the polls just a few months ago.

Commentators were arguing even at the point of polls closing that Labour would lose control of key councils such as Southampton, Harlow, Carlisle and Nuneaton. Yes – everybody remembers Nuneaton. But these predictions proved false. Labour did not just hold on to these areas but in a great deal of them the party increased its share of the vote and indeed its share of council seats. Labour has truly defied the odds across England.

The information that was shared in the weeks before the election on Thursday suggested that with Labour’s current position in the polls it would lose 170 seats. Some went as far as to suggest we would lose towards the 300 mark given the crisis Labour found itself enveloped in during the run up to voting. Opponents were kind enough to note that if we achieved parity with the Tory vote we would only lose 120 council seats.

While any loss is regrettable I have made my view clear on why Labour faced an uphill climb in these elections. Despite the rhetoric we have lost just over 20 seats. I agree with John McDonnell’s call this morning that it is time for the ‘begrudgers’ to ‘put up or shut up’. No wonder they are being so quiet.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.