Iberia airlines is reported to be operating healthily again, coming back to life after losing money at the rate of €1.7m every day back in 2011.
That was the year when Spain’s carrier merged with British Airways to form International Airlines Group headed up by Willie Walsh.
By 2012, Iberia posted a loss of nearly €1bn.
Even last year, Iberia’s workers were horrified and feared for their jobs when a restructuring plan was announced. Thousands of staff at Madrid’s airport Barajas waving “British go home” banners clashed violently with police. A five-day strike against the restructuring was called.
Spain’s pilots’ union, Sepla, called for the merger to be dismantled, claiming the company was using Iberia to augment BA’s pension scheme.
But by February 2014, the company announced that Iberia was back in the black for 2013 with pre-tax profit of €227m.
Agreements have been reached with various unions, including a freeze on pilots’ salaries and plans to improve productivity.
It was the first time since 2009 that Iberia’s management achieved a labour agreement with pilots, allowing the airline to increase flying hours and reduce salaries to legal and industry-wide standards.
The unions had also opposed the creation of Iberia Express, the airline’s lower cost subsidiary, but it went ahead in 2012. Also that year, IAG mounted a full takeover of budget carrier Vueling which has been challenging Ryanair and easyJet by increasing its European destinations.
Many analysts believe that Iberia’s prospects are bright.
