Talks between BA and Iberia take off after summer break
BRITISH AIRWAYS’ (BA) chief financial officer Keith Wiliams said yesterday that talks with Spanish flag carrier Iberia had stepped up a gear, over a year after a possible tie-up was first announced.
In a weekly newsletter, Williams told staff : “We have met the Iberia management team on a few occasions now and the talks have picked up pace”.
Talks between Iberia and BA, which is also seeking a tie-up with American Airlines, floundered after the downturn saw BA’s burdensome pension deficit jump.
But Williams said yesterday that analysts are now seeing the benefits for Iberia in a merger.
The appointment of Antonio Vazquez Romero as chairman in July is also thought to have helped rekindle the talks.
Meanwhile, BA said yesterday it would get rid of all temporary staff and slash 125 jobs.
It is looking to axe 2,000 jobs overall, as it strives to cut costs, and warned that compulsory redundancies may be necessary if the airline doesn’t hit its target. Just 140 staff have accepted voluntary redundancy so far.
Talks with unions have been ongoing over the summer, but have frequently broken down as the two sides failed to reach agreement.