Lufthansa has created the new model. Iberia will fly A340s on longhaul with its international brand recognition and Vueling will take over the majority of short haul as a very low-cost carrier.
Very sad for the Iberia crew who will be impacted.
Although very poor compensation, I do hope the Iberia crew get slots at Veuling as it expands if those pilots wish to continue to live/fly in Spain and Europe. Although I doubt many Iberia pilots would take that option. Perhaps Emirates will get more applications from Spain as a result. Sounded like Qatar opened its hiring to Spanair pilots but the integration did not work so well for many applicants - let us hope Iberia crews who do wish to go East can speak better English..........
Good luck to all involved!