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

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Michael Gove definitely didn't betray anyone, says Michael Gove

What's a disagreement among friends?

Michael Gove is certainly not a traitor and he thinks Theresa May is absolutely the best leader of the Conservative party.

That's according to the cast out Brexiteer, who told the BBC's World At One life on the back benches has given him the opportunity to reflect on his mistakes. 

He described Boris Johnson, his one-time Leave ally before he decided to run against him for leader, as "phenomenally talented". 

Asked whether he had betrayed Johnson with his surprise leadership bid, Gove protested: "I wouldn't say I stabbed him in the back."

Instead, "while I intially thought Boris was the right person to be Prime Minister", he later came to the conclusion "he wasn't the right person to be Prime Minister at that point".

As for campaigning against the then-PM David Cameron, he declared: "I absolutely reject the idea of betrayal." Instead, it was a "disagreement" among friends: "Disagreement among friends is always painful."

Gove, who up to July had been a government minister since 2010, also found time to praise the person in charge of hiring government ministers, Theresa May. 

He said: "With the benefit of hindsight and the opportunity to spend some time on the backbenches reflecting on some of the mistakes I've made and some of the judgements I've made, I actually think that Theresa is the right leader at the right time. 

"I think that someone who took the position she did during the referendum is very well placed both to unite the party and lead these negotiations effectively."

Gove, who told The Times he was shocked when Cameron resigned after the Brexit vote, had backed Johnson for leader.

However, at the last minute he announced his candidacy, and caused an infuriated Johnson to pull his own campaign. Gove received just 14 per cent of the vote in the final contest, compared to 60.5 per cent for May. 


Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.