Spanish airline Iberia is close to finding a solution to its recent struggles. The International Airline Group (IAG) is accepting the partial cutbacks suggested by a mediator, and labor unions are also backing the solution, which will cut 666 jobs compared to the 3,807 cuts that were talked about previously.
Severance payments will also improve, but it looks like pilots will not be pleased with the proposal even though IAG is taking on 300 million euros of costs. The group's demands are one of the reasons that Iberia has lost its competitive edge. If the agreement is turned down on Wednesday, IAG will have no other optioni than to force stiff cutbacks on Iberia in order to save the airline. If that happens, pilots will be up in arms.
