Iberia pilots are up in arms over plans to wetlease aircraft and hire pilots from domestic rival Air Europa and intend to carry out eleven hour strikes every Monday and Friday between 27 March and 31 July. The pilots are protesting at plans for a one year contract to wetlease 11 aircraft and hire 125 pilots from Air Europa.
Iberia estimates that every day of strike action will cost the company Pta400 million (US$2.6 million). But Iberia's main pilot union Sepla says that management has broken their agreement to consult the unions before deals with other airlines are struck.
Sepla understands that wetleasing needs to be used for periods of peak demand. But the union says at it is 'becoming a habit' at Iberia.
An Iberia spokesman says it plans to hire more pilots in the future to cover an upsurge in demand, but first it wants to implement further pay cuts of 15 per cent and a 30 per cent productivity increase.
The strike action will not come at a good time for Iberia, which is set for full privatisation by early 1999. The airline is entering a three phase sell-off plan, with an equity stake by British Airways on the cards. The Spanish carrier admits that BA is in talks with its holding company, Sepi.
According to Iberia, BA initially wanted an 80 per cent share and then bid for 25 per cent. Sepi made a counter proposal of 5 per cent, but is now willing to accept 10 per cent.
At this point the Spanish government will only accept equity stakes from BA or American Airlines. These could guarantee a good share price from institutional investors - the next in line for an equity stake. The remaining equity will then be sold in a general flotation.
Source: Airline Business
