Iberia has announced its plans to cut flights from Madrid to Montevideo as they work to restructure the airline. This has come as a blow to Uruguay, as the country has been working hard to establish more connections with countries abroad. The flights will be cancelled as of April 2013, and they are the only direct flights between Uruguay and Spain. These flights are operated six time per week and have an occupancy rate of 86%.
Diego Cánepa, the President’s secretary, said the decision was bad news and was not related to the occupancy rate of the flights, but was the result of general cost-cutting measures being undertaken by the airline. Sources at the airline say they are cutting routes that are not profitable and this means cutting 25% of its staff, as well. More than 30 routes in Latin America will be suspended and 28 of those suspensions have already been planned.
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