Failure of talks prompts deeper Iberia cuts
 

I can't see IB surviving for much longer.
As an airline it is too small to compete effectively. It has steafastedly refused to modernise and operates, compared to many other airlines, in a bizarre fashion.
It's a remnant of the state monopoly days.

It's run for the convenience of its employees, their friends and families, and Los Reales. When I used to travel on IB (a lot) I was always better treated when travelling on GP tickets than on commercial normal fare tickets and I would observe this regularly both at Madrid and at outstations.

Unless you work for Iberia, it's better to close it down.

A bit like Alitalia or the old Olympic, nobody else will care.

Don't forget that BA are bleeding it dry to plug their own pension deficit ;)

Sean Bell,

TOTAL COBBLERS. I suggest you check your facts before you spout such complete and utter tosh!!!:\

I assume you are familiar with "Irony" Sporran? ;)

And BA has taken all of IB's profitable routes for their own, leaving them with rubbish. ;)

:oh:
Sorry ;)

someone had to bite

The operating environment has changed so much in the last decade that the business case for status quo at Iberia cannot be made. The Spanish market is deflated economically. LCCs are growing in Spain and in Europe. It certainly doesn't help Iberia that it's sister airline Vueling is sooo much cheaper to operate (thanks to much lower wages, etc.) as a comparison.

Unfortunately, with the exception of currently strong Latin American connections to Spain, Iberia looks very uncompetitive. Once the Middle Eastern airlines start flying 787s and A350s directly to Lima, Panama City, Bogota (Qatar and Emirates already serve Sao Paulo and Buenos Aires), Iberia's influence in supporting world trade beyond Europe will decline further. BA can provide one stop service to the ME or India from Miami, Mexico City and a few other Latin American cities - Iberia cannot at the moment through Madrid (although perhaps through another alliance member). Still, the continuity of service is not strong for Iberia.

So, while we all want to protect and promote high wages in this industry, the argument becomes more challenging when cheaper LCCs and more efficient ME carriers directly compete with legacy carriers - can operating revenues match operating costs while protecting margins? That's the challenge in this changing environment... :eek:

Iberia are a dinosaur living in a modern world....and look what happened to the dinosaurs........

SEPLA didn't even turn up to the negotiations. Iberia has offered to reverse the additional paycut if the unions are prepared to negotiate productivity savings.

What was it Martin Broughton said about not being at the able means you'll end up on the menu?

Given that Iberia don't fly anywhere east of Jordan I don't think they'd be too worried about Middle Eastern carriers taking their business.