CK
ScanFlyer Mile High Club
Spanair presented a Redundancy Plan
This measure, which is part of the Feasibility Plan, intends to ensure the
continuity of the Company and around 3.000 jobs
Palma de Mallorca, 8th of August 2008.- Spanair's Management presented this
morning to the employee representatives and to the Direccion General de Trabajo
del Ministerio de Trabajo e Inmigración (Ministry of Labour and Immigration) a
Redundancy Plan, due to economic, technical and organizational reasons, which
affects up to 954 full-time positions, equivalent to a maximum of 1.062 Spanair
employees and a maximum of 131 Fuerza de Ventas staff.
This ERE is included within the Feasibility Plan with which Spanair intends to
ensure the continuity of the company and secure around 3.000 job positions in
the company. It also includes measures such as a 24% capacity reduction, other
cost reductions and a total result improvement plan of 90 million euros for
2009. This Feasibility Plan is the company response to the crisis that affects
the whole airline industry as consequence of the continuous increase in fuel
price, the decrease of demand due to the economy slowdown in the Spanish market
and the excess of capacity.
The Feasibility Plan is based on four strategic pillars: re-dimensioning of the
aircraft capacity, cost reductions, improvement of efficiency and revenue
improvement measures. The total earnings effect in 2009 from these measures is
estimated to MEUR 90. The impact of these measures in the company productivity
and costs will be gradual from their implementation in September - October 2008.
One of the first measures included in this Feasibility Plan is the capacity
reduction through phase-out of 15 aircraft between Sept. 15 and Nov. 1st, which
means a reduction of 24% of Spanair operations, as well as the cancellation of 9
routes and the reduction of most unprofitable frequencies in other routes.
The Feasibility Plan also includes concentration of Spanair's 7 operational
bases (Barcelona, Bilbao, Las Palmas, Madrid, Málaga, Tenerife Norte and Palma
de Mallorca) into 2 (Barcelona and Madrid) with the aim to simplify operational
activities, increase efficiency, reduce operational costs and ensure the
Company's feasibility.
From the time of today's presentation of this Labour Reduction File, a period of
30 days negotiation begins for the company and the employee representatives to
reach an agreement. Spanair management presented this file today to the employee
representatives, and will invite them to a meeting to be held in the next days
in Palma de Mallorca to urgently constitute the Negotiation Table.
This measure, which is part of the Feasibility Plan, intends to ensure the
continuity of the Company and around 3.000 jobs
Palma de Mallorca, 8th of August 2008.- Spanair's Management presented this
morning to the employee representatives and to the Direccion General de Trabajo
del Ministerio de Trabajo e Inmigración (Ministry of Labour and Immigration) a
Redundancy Plan, due to economic, technical and organizational reasons, which
affects up to 954 full-time positions, equivalent to a maximum of 1.062 Spanair
employees and a maximum of 131 Fuerza de Ventas staff.
This ERE is included within the Feasibility Plan with which Spanair intends to
ensure the continuity of the company and secure around 3.000 job positions in
the company. It also includes measures such as a 24% capacity reduction, other
cost reductions and a total result improvement plan of 90 million euros for
2009. This Feasibility Plan is the company response to the crisis that affects
the whole airline industry as consequence of the continuous increase in fuel
price, the decrease of demand due to the economy slowdown in the Spanish market
and the excess of capacity.
The Feasibility Plan is based on four strategic pillars: re-dimensioning of the
aircraft capacity, cost reductions, improvement of efficiency and revenue
improvement measures. The total earnings effect in 2009 from these measures is
estimated to MEUR 90. The impact of these measures in the company productivity
and costs will be gradual from their implementation in September - October 2008.
One of the first measures included in this Feasibility Plan is the capacity
reduction through phase-out of 15 aircraft between Sept. 15 and Nov. 1st, which
means a reduction of 24% of Spanair operations, as well as the cancellation of 9
routes and the reduction of most unprofitable frequencies in other routes.
The Feasibility Plan also includes concentration of Spanair's 7 operational
bases (Barcelona, Bilbao, Las Palmas, Madrid, Málaga, Tenerife Norte and Palma
de Mallorca) into 2 (Barcelona and Madrid) with the aim to simplify operational
activities, increase efficiency, reduce operational costs and ensure the
Company's feasibility.
From the time of today's presentation of this Labour Reduction File, a period of
30 days negotiation begins for the company and the employee representatives to
reach an agreement. Spanair management presented this file today to the employee
representatives, and will invite them to a meeting to be held in the next days
in Palma de Mallorca to urgently constitute the Negotiation Table.
