Iberian Airline Top Executive, Rafael Sanchez-Lozano, Steps Down After Four Years

After months of labor disruptions and lose of money, Iberia airline's top executive, Rafael Sanchez-Lozano, has resigned.

Reuters reports that Rafael Sanchez-Lozano and Iberia-parent company IAG (who was formed in 2011 by the merger of Iberia and British Airways, which Spain criticized, claiming it cost Iberia market share) decided "by mutual agreement" that he would immediately give up his duties at Iberia chief and step down as an IAG board member. IAG did not give a reason for why the sides had reached that "agreement."

Sanchez-Lozano had run Iberia since 2009 and will be replaced by Luis Gallego, who currently is the head of the low-cost Iberia Express unit, according to Reuters.

"I have been proud to lead Iberia for over three years. It has been a privilege to work for such a great company, Sanchez-Lozano said, according to businesstravelersusa.com.

Iberia workers reached a pact with management earlier this month ending on-again off-again job disputes. Both sides agreed to call off the strikes after Iberia-with the help of a government-appointed mediator agreed to reduce layoffs and pull back on pay cuts.

"After reaching agreement with the mediator and the majority of our unions, we have achieved an important milestone as we restructure the airline. The company is now entering a new phase and it is time for me to pass on the baton to my successor," said Sanchez-Lozano, reported businesstravelersusa.com.

However, IAG did release their own statement about the matter and his time spent with them.

"(Sanchez-Lozano) has led the airline through a very difficult period in the midst of a deep recession and has completed the first important step towards returning the airline to profitability," IAG Chief Executive Willie Walsh said in the statement, according to Reuters.

IAG also announced the financial impact: "the company lost 3 million euros (£2.55 million) every day that workers at the Spanish airline were on strike. The company posted an operating loss of 613 million euros for 2012," stated USA Today.