IAG's Iberia reportedly presented with offer from pilot's union Sepla

The Spanish pilot's trade union, Sepla, has reportedly presented a proposal to help turn around Iberia, the Spanish airline group operating under International Consolidated Airlines Group (IAG), according to an article in www.Bolsamania.com, a key Spanish financial news website.

Iberia pilots have offered a 26% reduction in their salary if the reported proposal were to be implemented according to the news report, considerably less than the 70% salary cuts rumoured to be on the table for discussion before.

However, for certain routes the concessions would be significantly larger.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

The pilots' union criticises that managers and shareholders of Iberia must commit to taking action to reduce the unit costs of the airline, which have been adversely affected by the decision to cede business lines (and their attendant revenues) to third parties and the lack of marketing initiatives.

The above would include the recovery of the operations transferred to third parties such as Vueling and Air Nostrum, as well as the renewal of the aircraft fleet, according to www.Bolsamania.com.

In return for making these concessions, Iberia's pilots would agree to a reduction in the unit costs of Iberia crews, on those domestic and European flights which compete with low cost rivals, of 59%. The same reduction will apply to those routes which are recovered.

Flight captains' and their number 2's salary tables will be differentiated along the lines of what is now current practice at IAG. New hires will see their salaries cut by 50%.

MF