Tag Archives: Iberia Express

Iberia takes delivery of its first Airbus A330-300

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Iberia A330-300 EC-LUB (77)(Apr) MAD (ASC)(LRW)

Iberia (Madrid) has taken delivery of the first of the five Airbus A330-302s that will enter service for the Spanish airline this year. The new type landed at 11:46 a.m. (1146) today at Iberia’s T4 hub at Madrid-Barajas airport.

The aircraft, A330-302 EC-LUB (msn 1377), is named “Tikal” and is equipped with IB’s new business and economy class interiors for long-haul flights.

In other news, the flag carrier is facing a new round of strikes by its employees on February 18 and February 22, grounding 415 of the 1,060 flights according to Reuters. The strike is also expected to affect Vueling Airlines and Iberia Express.

Copyright Photo: #SaveIberia. EC-LUB arrives at the MAD base. The new type is due to go into revenue service on the Madrid-Luanda route. Iberia had wanted to introduce a new livery with this new type but has decided to delay any new brand.

Iberia: AG Slide Show

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Iberia to cut striking pilot salaries and benefits

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Iberia (Madrid) wants to cut the salaries of its pilots and reduce the perks while increasing the hours flown for its pilots. By doing so, the embattled flag carriers hopes to trim 20 percent on its total costs for its pilots and boost productivity by 25 percent according to this report by Reuters.

Read the full report: CLICK HERE

Meanwhile the IB pilots continue to strike the flag carrier over the introduction of lower-cost Iberia Express.

Who will win this battle?

Copyright Photo: Pepscl.

Iberia Slide Show: CLICK HERE

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Iberia issues a statement about the legality of Iberia Express and the on-going pilot strikes by SEPLA

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Iberia (Madrid) today (April 16) issued the following statement concerning the SEPLA pilots union’s call for another 30 days of strikes and the latest remarks by the SEPLA representative:

  • The Legality of Iberia Express, a Success Story with Good Prospects

Iberia Express was founded on October 6, 2011, and it complies with all Iberia’s agreements and union contracts, so it is strictly legal.

Iberia Express is a company 100% owned by the Iberia group, specialising in short- and medium-haul flights, both point-to-point and to feed traffic to Iberia’s long-haul network in a profitable manner.

Iberia Express began operations on March 25, using four Airbus A320s to serve four domestic destinations, to be expanded by the end of this year to 14 aircraft and 20 destinations, including some that are entirely new for Iberia, such as Riga and Mikonos. It offers both business and tourist class, and the same services as other Iberia flights, at competitive fares.
In a country with 5 million unemployed, the new airline will create some 500 jobs this year, a number which will double when the company reaches full capacity.
Iberia Express is a success story from the very beginning, with a punctuality rating close to 100%. Its business approach, ability to adapt to the current situation and its quality guarantee Iberia Express a bright future, as bright as the other airlines where Iberia holds a stake.
  • A Short- and Medium-haul Segment with a Future and Employment Guarantees
The traditional business model for short- and medium-haul routes is no longer viable, as the closing of several carriers attests, due to competition from low-cost airlines and other forms of transportation, as well as a structural shift in the priorities of the customers in these markets. At the same time, Iberia relies on having a broad range of such routes since they provide 70% of its traffic on the long-haul routes which are profitable and on which the company is focusing its future growth strategy.
Iberia negotiated and reached agreements with ground staff and cabin crews over a number of measures to contain costs and raise productivity, aimed at restoring profitability to these routes. However, despite a total of more than 60 meetings over a two-year period, it proved impossible to reach a similar agreement with pilots, which led Iberia to launch the new Iberia Express airline as the best alternative for making short- and medium-haul routes viable, while feeding traffic to the company’s long-haul network.
The airline has made formal employment guarantee commitments to the ground and cabin staff unions representing 93% of total company personnel, with assurances that the creation of Iberia Express does not threaten existing jobs.
  • Iberia Pilots’ Productivity
The productivity of Iberia pilots is the lowest in Spain. They fly an average of 650 hours per year, as compared with the 900 the law permits, the more than 800 flown by pilots of other short-haul airlines with which Iberia competes. The collective bargaining agreement with Iberia specifies a limit of 820 hours per year in short-haul fleets and 850 in long-haul fleets, limits which are never reached because of the large number of conditions and restrictions.
In addition, in long-haul flights many of these hours are worked by extra crew members who travel as reinforcement staff, in excess of legal requisites and the practices of other airlines.
Under the proposal made by the SEPLA union, the pilots hired by Iberia Express would enter the ranks of all Iberia pilots and come under the same collective bargaining agreement, with the same conditions and restrictions, which means that their productivity would be exactly the same as that of other Iberia pilots. Without eliminating these conditions and restrictions, it would be impossible to increase productivity to a level near that of competing airlines. In addition, the pilots union proposal for payroll cuts was strictly temporary, and would have been diluted over time and fail to solve any of Iberia’s competitiveness issues.
  • The Strikes
SEPLA has called a total of 26 strikes against Iberia in the past 30 years, which is probably a record number of strikes ever endured by any company in such a period. In the past five months SEPLA has called 66 strike days to protest the creation of Iberia Express; it initially cancelled 24 of them when the government proposed mediation by Manuel Pimentel, but called again another 30 strikes, up until July 20.
Each of the first 12 strike days in the past few months brought losses to the airline of around 3 million euros, or a total of 36 million. We have to add on top of this the other 30 new strike days, with their concomitant losses to the company.
  • Mediation
Last November, long before the intervention of the mediator proposed by the government, Iberia had already offered SEPLA representatives the opportunity to choose a neutral person to preside over the bargaining table in order to facilitate negotiations, but this proposal was rejected by SEPLA. For this role the company had suggested Esteban Rodríguez Vera, who has held numerous positions in the Ministry of Labour, including those of Director General and General Technical Secretary, and also Carolina Martínez Moreno, professor of labour law at the University of Oviedo, and chairperson of the National Consultative Committee on Collective Bargaining.
The airline worked openly and in the best of faith with the mediator named by the government, Manuel Pimentel, with the aim of reaching an agreement to call off a conflict that is so damaging to customers, to the company, and to Spain’s tourism sector and economy as a whole.
Iberia was prepared to consider the proposal made by the mediator, but it was rejected out of hand by the SEPLA pilot’s union, so could not even be discussed.
  • Iberia’s Spanishness
Iberia is not the property of the SEPLA union, but belongs to shareholders around the world, who risk their money, vote on company strategy (including the creation of Iberia Express), appoint top management, and keep watch on the company through the board.
The company’s headquarters, its operational base, and the lion’s share of its business, are all in Spain, and this is the greatest guarantee of its Spanishness.
Sixty-six strike days are not the best way to attract serious investors to the company or the capital required to ensure survival and future growth, but, on the contrary, they drive investors and customers away, and constitute an irresponsible action by the SEPLA union that poses the greatest risk to Iberia’s future.
  • The T4 Hub
Terminal 4 at Madrid-Barajas airport does not belong to the SEPLA union, nor to Iberia, nor to British Airways, nor to any of the many other airlines that use it. It belongs to the state agency AENA, hence to the country as a whole, and it is open to airlines that pay fees for its use.
Iberia is the largest user of this terminal, so its pays the most to AENA. Iberia group airlines operate more than 600 daily flights from/to Madrid, as compared to 10 operated by British Airways, which has actually reduced the number of its Madrid flights since the merger.
  • IAG
IAG, the holding company to which both Iberia and British Airways now belong, is a Spanish company with corporate domicile in Madrid and operational HQ in London. The chairman is a Spaniard, Iberia chairman Antonio Vázquez, and its largest shareholder is the Spanish bank Caja Madrid (now Bankia).
The IAG board has 14 members, seven chosen by Iberia and seven by British Airways, and it supervises both companies.
IAG’s primary concern is for both airlines to be profitable, and to create value for shareholders, employees, and customers. But the two airlines maintain their separate identities and brands, along with autonomy of management, with each one obliged to solve its problems using its own means and resources. Each airline has to finance investment with its own funds. Each airline has its plans and must manage them with its own resources, solving problems with its own means. The motive of the merger was to create synergies, i.e. to save on costs thanks to a larger volume of purchases, and to share certain resources and increase revenues thanks to a larger network.
Iberia believes it necessary to state the foregoing to further the understanding of the current situation by its customers and the public at large.
The company will continue to use all means at its disposal to assist customers affected by the strikes, and to assure the future of Iberia and of its more than 20,000 employees.
Iberia appeals its pilots to stop the strike and work to make Iberia one of the most competitive airlines, which will benefit them and the company as a whole.
Copyright Photo: Javier Rodriguez.
Hot New Photos Slide Show: CLICK HERE
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Iberia is hit today by the first of 30 one-day strikes

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Iberia Express Airbus A320-211 EC-FNR (msn 323) PMI (Javier Rodriguez). Image: 908105.

Iberia (Madrid) was hit today by the first day of 30 single-days strikes by its pilots who are protesting the launch of the lower-wage Iberia Express (Madrid). As a result, at least 150 flights today have been cancelled by the carrier.

Read the full report from Reuters: CLICK HERE

Copyright Photo: Javier Rodriquez.

Hot New Photos Slide Show: CLICK HERE

Iberia Slide Show: CLICK HERE

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Iberia hit by a general strike in Spain today, pilots call for 30 days of strikes from April through July to protest Iberia Express

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Iberia (Madrid) is dealing with a general strike in Spain today. According to the airline, “As a result of the general strike in Spain on March 29, and which also affects air traffic, more than four hundred of Iberia Group flights have been cancelled.”

List of cancelled Iberia flights: CLICK HERE

In other bad news for the company, the IB pilots, still angry over the launch this week of Iberia Express while everyone was in mediation over the issue, have announced 30 additional days of strikes in the April through July period. The company slammed the latest announcement of strikes as ”irresponsible”, as well as “unjustified, damaging and disproportionate”.

Read the full account from Reuters: CLICK HERE

Copyright Photo: Javier Rodriguez.

Hot New Photos Slide Show: CLICK HERE

Iberia Slide Show: CLICK HERE

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Iberia Express launches low-fare operations today

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Iberia Express (Madrid) despite protests and strikes by the Iberia pilots and cabin staff, as planned, launched low-fare domestic operations today (March 25) in Spain. With four older Airbus A320s, Iberia Express commenced operations from the Madrid hub to Alicante, Malaga, Palma de Mallorca and Seville.

Copyright Photo: Javier Rodriguez. Airbus A320-211 EC-FNR (msn 323) arrives at Palma on the first day of operations.

Hot New Photos Slide Show: CLICK HERE

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Iberia announces the first Iberia Express routes

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Iberia Express (Madrid) will commence operations on March 25 with four Airbus A320s from its parent. The initial routes will be between Madrid and Palma de Majorca, Alicante, Malaga, and Seville.

A total of 17 destinations will be served during the summer season, including Vigo, Santiago de Compostela, Granada, Minorca, Ibiza, Fuerteventura, Lanzarote, and La Palma in Spain, and also Dublin, Naples, Mikonos, Riga and Amsterdam. The new airline, wholly-owned by Iberia, made its debut in Madrid today at a press conference hosted by the Iberia CEO Rafael Sánchez-Lozano and Iberia Express CEO Luis Gallego. According to Iberia, “the new Iberia unit is designed to restore profitability to short- and medium-haul routes, operating initially with four A320s on domestic and European routes. By the end of the year the company is expected to have fourteen A320s and a staff of some 500 people. The new company will strengthen the Iberia group’s Madrid-Barajas hub and contribute to the growth of its long-haul business.” The various Iberia unions have opposed the launch of Iberia Express.
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IAG is pressing ahead with Iberia Express

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Iberia Express (Madrid) will launch low-fare operations on March 25 despite previous protests and strikes from Iberia’s unions who have now called off their strikes due to mediation. Iberia and the International Airline Group (IAG) are moving ahead with the launch while the issue is in mediation.

On its launch, Iberia Express will become an affiliated member of oneworld. Iberia has been a member since 1999.

Iberia Express is a wholly-owned subsidiary of Iberia and will operate the short- and medium-haul flights currently handled by Iberia, plus some new routes. Iberia Express will cover point-to-point traffic and serve as a feeder for Iberia’s long-haul flights to/from its Madrid hub. The new airline will offer both economy and business class seats, initially in four Airbus A320s, but this number will rise to 13 aircraft by the end of the year. All the aircraft will be transferred from the current Iberia fleet. As previously reported, the pilots and cabin crews called off their planned 24 days of strikes from March through June to protest the launch after the Spanish government entered the dispute with promises of mediation. However it appears Iberia is getting what it wants – a new lower salaried option for its European routes.
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Iberia’s pilots and cabin staff agree to cancel their 24 days of strikes

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Iberia’s (Madrid) pilots and cabin crew staff have agreed to cancel their planned 24 days of strikes between now and June after the Spanish government intervened and decided to appoint a mediator to help resolve the issues fueling the strikes. The unions are protesting the launch of low-wages Iberia Express on March 25.

Read the full report from the WSJ: CLICK HERE

Copyright Photo: Rolf Wallner.

Iberia Slide Show: CLICK HERE

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Iberia’s pilots plan 24 more days of strikes

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Iberia’s (Madrid) pilots are planning to conduct 24 additional days of strikes in protest to the formation of low-cost Iberia Express.

Read the full report from AFP: CLICK HERE

Copyright Photo: Paul Denton.

Iberia Slide Show: CLICK HERE

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Iberia’s ground personnel join the pilots in regular strikes to block Iberia Express

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Iberia (Madrid) is facing a more unified union front in their attempt to blok the launch of Iberia Express. Today all of the unions at Iberia have called for industrial action starting on February 3. This means IB will be facing a strike every Monday and Friday by ground personnel and the pilots. The cabin crews will vote on joining the pilot’s strike at a meeting on January 20.

Ground staff are now demanding job guarantees through 2015, plus a freeze on the launching of lower-wage Iberia Express, together with the dismantling of Iberia by IAG.

Copyright Photo: Ariel Shocron. Please click on the photo for information on this retrojet.

Iberia Slide Show: CLICK HERE

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Iberia’s pilots call for three more days of strikes

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Iberia’s (Madrid) pilots have announced three more days of strikes in January – specifically January 25, 27 and 30.

The company is still going ahead with the new lower-pay Iberia Express plans.

Airbus A320 EC-FGV is due to be the first aircraft to be painted in the Iberia Express colors. IB is also trying to acquire three Vueling A320s for the new operation.

Copyright Photo: Ariel Shocron. Please click on the photo for more information.

Iberia Slide Show: CLICK HERE

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Iberia cancels 118 flights, pilots call for two more days of strikes to protest Iberia Express

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Iberia’s (Madrid) pilots impacted the company yesterday with its second day of strikes this month. As a result 118 flights were cancelled, but all passengers eventually reached their destinations by rerouting or rescheduling.

Iberia Pilots, under the SEPLA union, have called for two more days of strikes next month, on January 9 and 11, demanding that the airline ceases its plans for creating a new “Low Salary, not Low Cost airline”, called Iberia Express.

Last week, Iberia advertised for A320 type rated pilots, ICAO Level 4 language proficiency and recent flight time, but no other requirements where specified. The company claims that it has received more than 1500 applications.

Two Vueling Airlines Airbus A320s have entered the Iberia hangars in order to be repainted onto the Iberia Express livery. Tthe company may start looking for Vueling pilots to fly the new IB Express routes.

British Airways pilots, represented by the BALPA union, visited Madrid on Wednesday to show their support to their IAG colleagues and to inform the striking IB pilots about the way BA pilots will help, as they see this IB Express company as a threat to their contracts, by outsourcing their European flights to this new company, or to newly-acquired BMI. Finally, reportedly the BA pilots told the IB pilots, that Willy Walsh had stated that he can resist all of the strikes by the IB pilots, thanks to the Spanish legislation, which mandates minimum services to be provided by the airlines.

According to the unions, BALPA will soon be joining SEPLA in its efforts against the outsourcing of the IAGs jobs and routes.

Copyright Photo: Ariel Shocron.

Iberia Slide Show: CLICK HERE

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Iberia’s pilots to strike on December 18 and December 29

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Iberia (Madrid) is facing a strike by its pilots during the Christmas-New Year’s holidays. The pilots have voted to strike on December 18 and December 29. The pilots are protesting the formation of and plans to operate Iberia Express.

Read the full report from the BBC: CLICK HERE

Copyright Photo: Ariel Shocron.

Iberia Slide Show: CLICK HERE

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Iberia’s pilots to vote on a strike action on November 30

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Iberia’s (Madrid) pilots will take a strike vote on November 30. The pilots are protesting the company’s plans to launch a new low-cost subsidiary (named Iberia Express) hiring pilots under lower rates and taking over many of IB’s routes.

Read the full story from Reuters: CLICK HERE

Copyright Photo: Ariel Shocron.

Iberia Slide Show: CLICK HERE

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Iberia Express is born

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IAG’s board has approved the launch of Iberia’s new subsidiary airline – Iberia Express – which will operate part of Iberia’s short and medium haul network.

According to IAG, “the subsidiary is being established to compete effectively in the Spanish domestic and European market. Over time it will develop new markets and destinations and strengthen the Madrid hub, creating valuable new jobs for the Spanish economy.”

Iberia Express will start operations in the summer of 2012. In addition to direct traffic, Iberia Express will also provide transfer feed onto Iberia’s long haul network.

The subsidiary will have a single A320 fleet with four aircraft initially. The low-cost subsidiary will have 13 A320s by the end of 2012. All the aircraft will be sourced from Iberia’s existing fleet.

Iberia Express will have lower operating costs than Iberia’s loss-making short and medium haul business. The subsidiary will recruit new staff at market rates. It will have improved aircraft utilization. Maintenance and ground handling will initially be provided by Iberia.

According to IAG, “The creation of Iberia Express will not change the terms and conditions of existing Iberia employees and it will not modify the existing relationships with Vueling Airlines and Air Nostrum-Iberia Regional.”

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