Iberia May Sidestep Strike Threat With New Low Cost Carrier
Helen YoungAs many travelers have already heard, Iberia’s cabin crew are threatening strike action over plans to launch a new carrier this year that would pay crew members lower wages. The new airline would employ some 350 staff and operate 14 aircraft. It is being viewed as an attempt by Iberia to sidestep union resistance to cost cuts.
A spokesman for Comision de Trabajadores Asemblearios, Javier Santos, said that they are completely against this move. He went on to say that Iberia is simply trying to pay cabin crew members less money.
Other Spanish unions have accused the national flag carrier of trying to copy British Airways in its attempt to cut costs. A spokesman for the Independiente de Tripulantes de Cabina de Pasajeros de Lineas Aereas, a trade union, said that they fear that the creation of a company of low cost is nothing more than the cession of part of Iberia with the only objective to cut costs by way of cabin crew and pilots. Thus, they suspect that they are trying to do the same thing that British Airways is doing.
Iberia is expected to seal its merger with British Airways this month. This deal would see both airlines operating as separate divisions within a UK-based holding company. Iberia already said that the new airline would not follow the low cost model. They went on to say that it will not be a low cost airline per say. For example, it will offer passengers business class for flights. The company also said that they will contract new staff for this airline and not transfer from Iberia.
It is also important to note that Qantas did a very similar thing when it launched Jetstar as a low cost operation in 2003. Thus, this is something that happens very often.
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