Iberia builds future with leaner, more flexible, and more efficient organisation

Iberia today unveiled its new organisational structure, which builds on the changes introduced by new CEO Luis Gallego in May, and is designed to contribute effectively to achieving the aims of enlarging revenues, improving customer perception, and establishing a competitive cost structure.

The reorganisation comes within the framework of the transformation process Iberia is carrying out in order to be able to compete successfully in the highly demanding context of a globalised industry, increasingly competitive and undergoing profound change. A recent ruling by Spain’s National Court upheld the rationality and appropriateness of the measures the company is taking in order to ensure its future.

A Strategic Planning unit has been created to strengthen the strategic vision and sustainability of the business in the medium and long term, and the powers of economic control are increased and centralised in the Strategic Planning and Finance Department.

A Network Development and Alliances Department has also been established, with responsibility for business development, alliances, and the flight programme.

The Commercial Department has been strengthened, as the Marketing unit has been assigned responsibility for advertising and the Iberia brand. In addition, new Digital Business and Customer Experience units are created, to increase on-line sales, and to improve perceived quality and the experience of the customer.

Production, Airport Services, and Technical Services (Maintenance) have been strengthened as service providers, and their procedures and tasks has been reorganised in order to boost profitability, coordination, and efficiency.

To ensure a more transversal and multidisciplinary working dynamic, there are new positions such as Financial and Systems Business Partners for each business unit, as well as Ground Operations director and Technical director within the Production department.

The new structure is based on the HAY methodology of evaluating and classifying positions, and it brings a substantial reduction in the number of senior management positions – from 82 to 44 – in order to facilitate flexibility, speed, and efficiency.

This new structure indicates Iberia’s commitment to the future and it was designed to detect and take advantage of all business opportunities, and to mount a successful response to the challenges of an industry undergoing a profound transformation.

Iberia’s CEO Luis Gallego commented: “our aim is to transform Iberia to restore profitability and competitiveness, and to do this it is indispensable for us to change the way we work. This is a task that involves all of us. Iberia has a future but to reach it, we need to continue with the Transformation Plan now underway.”