.: Cases in Strategic Management 
Case 16 THE RESTRUCTURING OF IBERIA: A FLIGHT PLAN PLAGUED BY TURBULENCE

Rocío González Sánchez
Sonia Medina Salgado
Universidad Rey Juan Carlos


16.1. INTRODUCTION: A BRIEF HISTORY
16.2. THE SPANISH AIRLINE INDUSTRY IN THE NEW MILLENNIUM
16.3. THE MERGER WITH BRITISH AIRWAYS: THE BIRTH OF IAG
16.3.1. Background
16.3.2. Process
16.3.3. And after the merger…
16.4. THE RESTRUCTURING OF IBERIA
16.4.1. The 2012-2015 transformation plan


Through to the end of 2013, Iberia, the flagship of the Spanish airline industry and part of the IAG holding, has recorded the sharpest downturn in its income statement and cashflow since it was created in 1927. There are numerous factors that have led to this situation; these include a significant fall in the number of bookings, the greater use of high-speed trains, a steep rise in airport taxes, and the major expansion of low-cost carriers, all of which have been played out against a backdrop of profound economic crisis. The current scenario has forced Iberia to adopt a restructuring plan, financed through its own resources in order to reduce its cost base and return to profit, which is proving to be difficult to implement.


• Analyse Iberia’s restructuring strategy and the impact of its conflicts with stakeholders

• Reflect upon Iberia’s strategic errors and the merger process

• Analyse the strategic changes made in Iberia following the latest corporate operations


• Restructuring

• Merger

• Strategic change

• Airline industry

NAVAS LÓPEZ, J.E.; GUERRAS MARTÍN, L.A. (2013):Fundamentals of Strategic Management", Thomson Reuters-Civitas, Cizur Menor.

Chapter 6: The directions for strategic development
Chapter 7: Methods of development

GUERRAS MARTÍN, L.A.; NAVAS LÓPEZ, J.E. (2007): La Dirección Estratégica de la Empresa. Teoría y Aplicaciones”, Thomson Reuters-Civitas, Cizur Menor, 4th edition.

Chapter 12: The directions for strategic development: diversification, vertical integration and portfolio restructuring
Chapter 14: Methods of development: internal and external growth



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