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.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Skipton launches a retirement bond with monthly income – is it any good?
The building society has launched a new three-year fixed-rate bond for those aged 66 and over. Can it boost your retirement income?
By Katie Williams Published
-
Pensions: 140,000 pensioners to be hit by surprise tax demand
Tens of thousands of pensioners will be written to over the summer because their pensions have gone above the frozen income tax thresholds
By Chris Newlands Published