I'm not surprised to hear that Iberia are cutting back on their in- flight service as their fares are now really competitive. I have recently booked 2 flights(Jan & April) with them for MAN to BCN and they were the cheapest carrier on both dates. I tried Monarch and BMIBaby who were both more expensive. Infact BMIBaby wanted £120 to fly on a cramped B737 when Iberia are charging £77 for a seat on a nice(& much newer) A320.