Thursday, 11 October, 2001, 19:09 GMT 20:09 UK

Iberia cuts 3,000 jobs

Iberia: scaling back operations

Spanish airline Iberia has confirmed it is to cut 3,000 jobs as it scales back operations in response to the crisis facing the air industry.

The airline had earlier announced an 11% cutback in flights and an eight euro surcharge on all passengers.

The airline has confirmed a 10% fall in passenger numbers since the attacks on the United States.

A spokesman said the flag carrier will negotiate the lay-offs with the government, trade unions and its strategic partners.

Progressive cuts

Iberia employs about 29,000 people.

The airline will make cost savings of 54.09m euros (£33.8m) in 2002 and 108.18 million euros in 2003.

A spokesman said the cuts in capacity will be brought in progressively from next month.

They will include the returning of 14 hired aircraft and their crews to their original owners.

The airline also plans to negotiate the postponement of the delivery of 19 new aircraft from Airbus, scheduled for 2002.

-- PHO (owennos@bigfoot.com), October 11, 2001