By Daniel Hunter
Restructuring at British Airways-owner IAG will see 4,500 jobs cut from their Spanish carrier, Iberia.
A quarter of Iberia's fleet is to be disposed of, and 15% of its network capacity cut, with the airline focusing only on the most profitable routes.
"Iberia is in a fight for survival," said the Spanish subsidiary's chief executive, Rafael Sanchez-Lozano. "It is unprofitable in all its markets.
"Unless we take radical action to introduce permanent structural change, the future for the airline is bleak."
The plan aims to stem Iberia's cash losses by mid-2013, and raise profits by at least 600m euros ($766m; £479m).
"Time is not on our side," said Mr Sanchez-Lozano, claiming that: "The company is burning 1.7m euros every day.
"If we do not reach consensus, we will have to take more radical action, which will lead to greater reductions in capacity and jobs."
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