[200213.EN.AIR] Iberia Strike To Disrupt 1,400 Flights, But Cargo Escapes Worst of It

SPANISH airline Iberia is facing the prospect of losing an estimated EUR100 million (US$133.5 million) in revenue as unions representing ground staff and flight attendants stage a five-day strike in protest over lost jobs and lower wages.

But cargo shipments are not expected to be seriously affected. The carrier is attempting to maintain 90 per cent of its flights on long-haul routes, on which most belly-cargo is carried.

The industrial action at Spanish airports, including Madrid, stands to last for a total of 15 days, after the union announced plans to hold further work stoppages March 4-8 and March 18-22.

So far, the first round of strikes has resulted in the cancellation of 400 mainly domestic flights, although services to a number of European destinations have also been temporarily suspended, reports Lloyd's Loading List.

Yet there is a possibility that 1,000 flights operated by other carriers could be disrupted during the Iberia strike as a result of a lack of ground staff at Spanish airports, reports Lloyd's Loading List.

The airline said in a release that it was "implementing contingency plans and customers with bookings on flights affected by the strike will be contacted."

Last week, Spain's Minister of Transport, Ana Pastor, called on Iberia's management and unions to strike a deal, emphasising that failure to do so would have serious consequences for the country's economy.

Management's plan to cut costs through staff redundancies and wage reductions aims to stem Iberia's cash losses by mid-2013, and raise profits by at least EUR600 million. For the first nine months of 2012, the carrier posted a loss of EUR262 million.

The initial restructuring plan announced last November called for 4,500 job cuts at Iberia, but the figure was revised downwards to 3,800 layoffs.

The restructuring push also makes provision to reduce its 156-strong fleet by 25 aircraft, and to remove 15 per cent of its network capacity so as to focus on the more profitable routes.

Source : HKSG, 20.02.13.