Iberia shares rise on restructuring plan

0 Comments | AFP, October, 2005

MADRID (AFP) — The price of shares in Spanish airline Iberia rose sharply in response to a restructuring plan to save 600 million euros (720 million dollars) mainly through job cuts and a pay freeze.

Iberia shares were showing a gain of 2.33 percent to 2.20 euros.

The plan for 2006-2008, approved by the board late on Thursday, did not say how many of the 26,000 employees would lose their jobs.

An Iberia spokesman told AFP: "The number has not yet been decided and has to be negotiated with the unions."

Iberia said in a statement that it expected to increase revenues and reduce costs, mainly on the wages front, in order to compete with low-cost competitors and respond to a rise in the price of fuel.

The company, which pays about 1.4 billion...