Spanair plans to slash around 1,000 employees and capacity by around 24% in the near future.

The capacity cut will be implemented quickly, with 15 aircraft to be phased out between September 15 and November 1. Along the way, nine routes will be shuttered and frequencies on others reduced.

Owner SAS Group had tried to unload Spanair, but once it couldn't find a buyer, it determined it would try to bring the airline back to financial health on its own. The package announced today is part of the so-called Feasibility Plan aimed at generating a EUR90 million improvement in the airline's financial results next year.

This morning the airline says it notified the Spanish ministry of labor and immigration of its cutback plans.

Overall, management says, the Feasibility Plan has four elements, cutting capacity, costs, improving efficiency, and other revenue generating measures. The airline blames the need for the action on slowing demand and high fuel costs.

As part of the network adjustment, Spanair will also focus on Barcelona and Madrid as operational bases. Five other bases (Bilbao, Las Palmas, Malaga, Tenerife Norte, and Palma de Mallorca) will lose that status. The goal is to simplify operations and thereby boost efficiency.

The contraction echoes a decision Iberia has already taken, which decided to focus its Spanish traffic on the Madrid hub.

Talks with labor are slated to start soon. Having filed its plans with the government triggers a 30-day period for labor and management to work out a way to implement the cutbacks.

Photo: Marek Slusarczyk via Wikipedia