Share

Iberia pilots agree to 14% salary cut

Madrid - Spanish flag carrier Iberia said Wednesday it had reached a deal with its pilots to slash their salaries by at least 14%, part of its bid to return to profit.

Iberia's roughly 1 400 pilots will see their salaries reduced by 14%, and possibly by another 4.0% depending on the airline's profitability, under the deal reached with pilots' union SEPLA, the airline said in a statement.

Pilots' salaries will remain frozen until 2015 as part of the agreement, the statement added.

"This groundbreaking deal reduces the cost structure and provides the foundation for the airline to grow profitably. A strong and profitable Iberia can protect jobs in the long term," Iberia's executive chairperson, Luis Gallego, said in a statement.

Iberia, part of the International Airlines Group (IAG) along with British Airways, says it accumulated €850m ($1.16bn) in losses between 2008 and 2012 due to high fuel costs, a sharp economic downturn in Spain and high operating costs.

The airline has cancelled dozens of routes since it merged with British Airways in January 2011 to form IAG to reduce its operating costs.

Last year Iberia and unions announced a deal to cut 3 100 jobs following months of strikes and protests.

Iberia saw its operating profit jump to €74m in the third quarter of 2013, up from just €1.0m last time around.

But in comparison third-quarter operating profit at British Airways surged to €477m, from €268m.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders