As part of an effort to regain a profitable footing, Iberia restructured its management, six weeks after the appointment of the company’s new chair and CEO. Antonio Vazquez Romero, who replaced Fernando Conte, announced the restructuring, saying its aim was to generate larger and better income, reduce operating expenses and rationalize spending, in part, by consolidating Iberia’s leadership in different markets. The move comes even as Iberia is working strike an acquisition deal with British Airways, stymied by BA’s pension commitments, which will probably mean more restructuring.

The move also comes as Iberia announced dismal results for the second quarter when it lost €72.8 million ($104.5m), versus a €21.2 million in the year-ago period. In the first half, the airline lost €165.4 million versus a €20.7 million gain in the first half of 2008. Revenues in the first half were down 19% to €2.2 billion.

It had already announced targets of 4.3% cost cuts, but those announced yesterday target 6%. In addition to long, short and medium-range equipment changes, it is also delaying non-essential capex. Revenues for the six months to the end of June were €2.2bn, down 19 per cent year on year. The company has warned several times that it would report

As part of the restructuring, the airline division was split into two new management units, one to increase income and the other to enhance profitability. In addition the airline division general management structure disappears to be replaced by a Commercial and Clients Division and a Production Division. Manuel López Aguilar heads of the former and the latter will be headed by the current production management unit, Juan Bujía.

Enrique Conaire, who headed the now-defunct airline division, remains with the company which expressed its gratitude to Donaire for his 30 years of dedicated service. He rose through the ranks having serviced not only as head of the airline division but as manager of the sales division, and into other positions in the sales area of Iberia and its subsidiaries.

The commercial and clients division is aimed at increasing revenues badly hit by the recession, declining demand and strong competition. “It will seek new private and corporate customers and develop new and better sources of income,” said the airline, adding that it will also be focused on “maintaining the solid leadership of Iberia in different markets.”

As for the production division, it will focus on increasing productivity, strengthening the airline’s competitive position, as well as enhancing profitability.

Iberia has also created a new Purchasing and Services Division, led by José María Fariza, previously responsible for control and administration. The new division will encompass the areas of services, purchasing, investments, and real estate, and its priority aim will be to rationalise expenditures.

Finally, José Luis Ruíz de Castañeda de la Llave, currently Iberia’s industrial maintenance unit manager, has been appointed manager of the Maintenance and Engineering Division.

Who’s Who
Manuel López Aguilar, Commercial and Clients Division Manager
Manuel López Aguilar, an aeronautical engineer, has been in charge of Iberia’s Maintenance and Engineering Division since 2004. Under his leadership the division substantially increased its sales, as annual revenues expanded from 540 to 720 million, and income from outside clients climbed from 122 to 315 million euros.

In this same period the division rose from 26th place to become the world’s 12th largest aircraft maintenance operator –or 9th if aircraft manufacturing companies are excluded.

Previously he had held several other positions in the maintenance unit, as manager and assistant manager of maintenance (in 1995 and 1997-99), assistant sales manager (1994-1997); and production manager (1999-2004). He is an active member of numerous industry bodies such as ATECMA, and an officer of the European Association of Aircraft Maintenance Companies.

He serves on the boards of several Iberia subsidiaries, and is vice-chairman of Ibeca and of Madrid Aerospace SL)

Juan Bujía, Production Division Manager
A graduate in aeronautical engineering from Madrid Polytechnic University, Bujía was in charge of the production management unit, whose responsibilities included the integration and optimisation of flight crew management procedures.

He worked at Iberia from 1970 until 1991, and rejoined the company in 1996. In the earlier period he served in both technical and management capacities, as head of engineering for aircraft engines, and assistant manager for aircraft inspection. He was also a member of the working group that helped developed a maintenance system for the supersonic Concorde airliner.

In the 1991-1996 period, he was manager of the Civil Aviation-Spain unit, and it was on his watch that the state AENA airport and air traffic control authority was established, whose aims included the separation of regulatory and operational aspects of the air transport infrastructure, as well as Spain’s entry into the Eurocontrol body, and the de-regulation of the airline business in Spain.

José Luis Ruiz de Castañeda de la Llave, Maintenance and Engineering Division Manager
José Luis Ruiz de Castañeda de la Llave earned an advance degree in aeronautical engineering from Madrid’s Polytechnic University, and earned an MS from the University of Hartford for his work on “Mechanisms Increasing the Resistance of Solids”. Most recently he was head of the company’s industrial maintenance unit.

He began his career at the Pratt & Whitney Aircraft in 1980, joining Iberia the following year. For eleven years he held different positions in the company, and in 1993 he was put in charge of maintenance for Aerolíneas Argentinas. In 1999 he was appointed quality manager at Iberia’s Material Division. In 2003 and 2004 his served as vice-chair of the Operative Technical Commission of the AEA, and he now represents the COIAE on the Experts Committee of Spain's Civil Aviation Agency.

José María Fariza, Purchasing and Services Division Manager
Jose María Fariza, a graduate in economics and business administration, has been head of the Iberia Group Control and Administration office since 1996, and a member of the company’s’ Executive Committee responsible for economic monitoring and administration procedures.

He has served on the boards of directors of several Iberia Group companies, including Vueling, SIV (flight instruction services) and ELCA.