Other European Frequent Flyer Programs - Oh god, here we go again: IB to create new LCC

http://www.elpais.com/articulo/economia/Iberia/crea/aerolinea/red/europea/abaratar/costes/laborales/elpepieco/20091023elpepieco_9/Tes

I'm sure this news will be debated a lot in the coming weeks, this is the first I've seen of it. IB, citing their dramatic situation (revenue collapsing) have announced they are getting creative. They'll freeze all salaries for two years and create a new airline, based in MAD and with a lower cost base (i.e., cheaper crews) to handle domestic and European flights with IB dedicating itself to long-haul routes.

Yes, IB already own 40% of VY. But that's a Barcelona thing and they want one based in Madrid. The new airline doesn't have a name yet, and is planned to launch in 2011.

Sigh.

there is an interesting thread over at airliners.net...
http://www.airliners.net/aviation-forums/general_aviation/read.main/4586441/
but the key things that I can think about are the potential savings from lower-paid crew creating some savings... from a passenger perspective, almost all intra-Europe Iberia flights are just like a LCC but with Oneworld airline miles, they charge for coffee and softdrinks, leg room is a sad joke, so what really separates IB from Easyjet/Ryanair? Airports? BCN is better than GRO.... LHR better than LGW/STN... not sure about using ORY instead of CDG...

Start with this quote from the airliners.net site:

"This has been tried very little success. There was DL/Song, CO/COLite, UA/Ted, BA/Go with none of those left flying."

And nearly every posting over there mentions the strength of the Spanish airline unions and their total opposition to any change / improvement at Iberia.

Iberia says it wants to get on-board staff to retire at 55. When you reach that level of seniority (assuming flying since age 25 or so), two round trips to Havana per month is your obligation under the current contract. I can't see that changing.

Every time there is an attempted shakeup at Iberia, the Spanish press reports on the strength of SEPLA, the Spanish Pilots' union. They can literally bring the airline to its knees and every couple of years threaten to do so. Their demands are almost always met. They are -- according to press reports -- just about the highest paid pilots in the industry, with a senior pilot earning 165,000 Euros (about 225,000 USD) per year.

The new Director General at Iberia has his hands full, and no McKinsey report, and no low-cost feeder airline is going to clear the way, I'm afraid.