IAG chief executive Willie Walsh has criticised the Spanish government for opposing the restructuring of its national carrier Iberia.
Walsh, speaking on British Airways’ inaugural flight to Chengdu in China, defended the decision to form IAG in 2011 by merging Iberia with BA, despite the negative impact that Iberia has since had on the group's financial performance.
BA reported a profit of €347 million compared to Iberia’s loss of €351 million in IAG's financial results for 2012, despite reported cost savings or “synergies” of €313 million from the merger last year.
Walsh said: “The synergies [with Iberia] are fantastic and that's a long-term structural benefit for us. Plus, Iberia had to be restructured, and it's easier for us to do it and it's easier to undergo that restructuring in a group such as IAG.”
Nevertheless, he admitted that the timing of the merger - in retrospect - had been unfortunate.
“I didn’t envisage such a deep downturn in the eurozone, so that's been the thing that's been most out of line with what we had thought,” added Walsh.
“I also didn't envisage such vocal opposition from the Spanish government, where they failed to recognise what needs to happen there.
"I wasn’t looking for any help, but I don’t think statements from politicians that are critical of the need to restructure sit well with what needs to happen."
iag.com
ba.com