December 11, 2008
Spanair, the Spanish subsidiary of Scandinavia's SAS, will cut 517 jobs and reduce the working hours of almost 200 others, it said on Thursday, as part of a plan to turn around the loss-making airline.
Spanair reiterated its plan would allow it to boost earnings by EUR90 million euros in 2009 and to break even in the 2010 financial year "or even close with some profit."
The number of jobs cuts announced on Thursday is a final figure which had been pending government approval. Spanair originally presented a recovery plan in July which envisaged cutting 900 jobs, around one third of the work force.
The airline will reduce the working hours of 185 pilots, cabin crew and mechanics on top of the job cuts, it said.
"We have been the first to announce a crisis in the sector and we are also the first Spanish airline to adopt necessary measures to survive," Spanair Director General Marcus Hedblom said in a statement.
SAS has been trying to sell Spanair, which made a SEK515 million kroner (USD$64 million) loss in the first half, but abandoned the process earlier after Spanish flag carrier Iberia and former owners, travel company Marsans, both pulled out of the bidding.
A Spanair jet crashed on takeoff at Madrid Airport on August 20, killing 154 people. SAS said in October the crash would have an impact of SEK500 million on its results.
British investment fund First Mile Investment said on Wednesday it was studying a bid for the airline.
Under the recovery plan, Spanair will cut its bases from seven at present to just two: Madrid and Barcelona.
(Reuters)
Spanair, the Spanish subsidiary of Scandinavia's SAS, will cut 517 jobs and reduce the working hours of almost 200 others, it said on Thursday, as part of a plan to turn around the loss-making airline.
Spanair reiterated its plan would allow it to boost earnings by EUR90 million euros in 2009 and to break even in the 2010 financial year "or even close with some profit."
The number of jobs cuts announced on Thursday is a final figure which had been pending government approval. Spanair originally presented a recovery plan in July which envisaged cutting 900 jobs, around one third of the work force.
The airline will reduce the working hours of 185 pilots, cabin crew and mechanics on top of the job cuts, it said.
"We have been the first to announce a crisis in the sector and we are also the first Spanish airline to adopt necessary measures to survive," Spanair Director General Marcus Hedblom said in a statement.
SAS has been trying to sell Spanair, which made a SEK515 million kroner (USD$64 million) loss in the first half, but abandoned the process earlier after Spanish flag carrier Iberia and former owners, travel company Marsans, both pulled out of the bidding.
A Spanair jet crashed on takeoff at Madrid Airport on August 20, killing 154 people. SAS said in October the crash would have an impact of SEK500 million on its results.
British investment fund First Mile Investment said on Wednesday it was studying a bid for the airline.
Under the recovery plan, Spanair will cut its bases from seven at present to just two: Madrid and Barcelona.
(Reuters)
