Iberia’s board of directors have announced a new strategic plan which includes a shift in the airline’s approach to the short- and medium-haul segment as well as greater emphasis on the generation of revenues, cost savings and efficiency, and improved service. It plans to create a new network airline based in Madrid which will feed and distribute traffic to Iberia’s growing long-haul network. It is also planning to expand its long-haul routes. The plan is to address the airlines grave problems: declining revenues, weak demand and mounting losses. The airline deems the measures it has already taken as insufficient.

After the 18 percent drop in income in the first half of this year, due to the lower demand in general and business passenger traffic in particular, the company is implementing a battery of measures to increase revenues in the short and medium term. Among these measures are a relaunch of business classes, with a new Business Plus class on long-haul routes. Additionally, more aggressive commercial actions will be implemented, with new approaches to large and small businesses, ethnic groups, tour operators and other groups that may generate additional traffic. A more proactive approach to customers and urgent measures to improve services within the Customer Service Quality Improvement Program that is now underway. The objective is to maintain Iberia's leadership in the markets where it flies. This new strategic plan, whose aim is to ensure the soundness and viability of the company, restoring it to profitability, and also strengthening Iberia’s position regardless of the outcome of corporate operations. For more information, visit www.iberia.com.
 

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