first_imgIberia The board of Spanish airline Iberia is planning to establish a low cost airline to help improve the carrier’s profitability, however their plans could lead to industrial action.Iberia who is owned by International Airlines Group (IAG) has plans to establish a budget carrier to take on short and medium-haul flights, the Financial Report reported. According to Selpa the Spanish pilot union, Iberia was considering outsourcing some of the roles relating to its domestic flights and threatened it could take strike action.This could mean a second case of Industrial action for IAG after British Airways cabin crew, also owned by IAG went on strike last year after the company cut staffing on long-haul flights.The carrier’s performance is also being threatened by intense competition from Europe’s leading low cost airlines Ryanair and EasyJet. Iberia has reported an operation loss of €78 million in the first six months of this year, while BA reported a profit of €210 million.Royal Bank of Scotland analyst Andrew Lobbenberg said both IAG and Iberia were eager to move on with the restructuring of the Spanish flag carriers short and medium-haul operations.“We expected this plan to prompt industrial action and we have only been surprised that the process has taken so long.” Source = e-Travel Blackboard: S.Plast_img

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