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Old Nov 30, 12, 3:49 pm   #1
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Letter from the President of Iberia - [strikes]

IB is up the creek without a paddle - but it's not BA's fault (honestly)



Quote:
Dear Mr PanGalactic,

In the past few weeks Iberia has been in the news because of the future viabilty
plan it submitted to its shareholders and employees, a plan intended to extricate
the company from a particularly critical situation in the midst of a very serious
economic crisis.
I am writing to tell you personally about what is happening In Iberia, the problems
that must be solved. and how we are approaching them, but also about our
company's many strengths, which make us confident that we can successfully
implement the changes that are needed, on condition that we have the support
of al our stakeholders. One the key strengths les in our client base —customers like
yourself, who have been loyal to the Iberia brand and have appreciated our
efforts to improve, even under less-than-ideal circumstances. We hope to continue
to receive your support In the difficult days and weeks ahead.
Iberia is a world-renowned Spanish brand, associated with solidity, reliabilty, and
strength, and will remain so in the future, now as a member of the tntemationai
Akiines Group, over which it is also my honour to preside. Like many other airlnes
cround the world, and particulcny those known as "traditional network cclriers”.
Iberia has operating costs that place it outside the mcrket, and this competitive
disadvantage is now being aggravated by the Spanish economic slump and the
global rise in aviation fuel prices. In the past four years Iberia has racked up losses
of nearly 900 million euros and is now pasting losses of more than one millon Euros
every day. No company in any industry can endure such a situation indefinitely.
Iberia has a glorious past that we should keep in mind as we prepcre to celebrate
our 85th anniversary. But now we must fight to ensure that we have a future, as well
as a past.
Under these circumstances, Iberia is doing what must be done, which is to come
up with the appropriate corrective measures and to put them into practise without
delay in order to restore profitability. Many other Spanish companies, large and
small, and in every industry, are taking similar measures. and for the same reasons.
as you are no doubt aware, and may even be experiencing in your awn industry.
lberia‘s management has drawn up a “Transformation Plan” to lay the foundation
for a much stronger and more competitive airlne. it does involve some hardships.
including a substantial staff reduction and pay cuts, but also multimillon euro
investments in new aircraft, new installations, and improvements to services and to
our customers‘ experience when you travel with us. The plans calls for eliminating
some routes and reducing capacity on others, but for also gawth in some routes.
which will be announced shortly. We want to implement the plan backed by the
largest possible consensus of stakeholders, and most pcrticulclty of our admired
and respected workforce.
From certain quarters malicious falsehoods have been spread, blaming British
Airways, |beria's partner in IAG, for its problems. The fact is that among many other
benefits, the synergies arising from the merger have already amounted to about
I00 millon euros for Iberia, an amount that is certain to increase in the future. Our
membership in IAG has also given us access to financing that otherwise would
have been closed to us, and our customers have benefited from a larger range of
destinations. British Aiways have also benefited from its association with Iberia and
our hlghty qualified professional staff. Economies of scale make both airlines more
efficient and better able to serve their customers and the shareholders of the IAG
group.
The trade unions‘ reaction to this plan for future viability has so far been a
resounding "no" and a flat refusal to negotiate. We regard this as simply
outrageous. since we have rnade it perfectly clear that we cre open to negotiate
every point of the plan with employees’ union representatives. We want a
negotiated solution that secures our company's future and that of our employees.
and to save the largest possible number of lobs. Our only condition is that the
resulting agreement can sotve our long-standing and chronic structural problems
once and for ail, for otherwise there is a serious risl< that Iberia will have to close, and
that is something we are not wlling to contemplate. The first decision taken by the
unions in response to the plan was to call a strike. not as the last resort. which is
quite legitimate when negotiations fall. but without negotiating at all.
In any case, in the event that the strike threats are carried out, please be assured
that we will do everything in our power to minimize the inconveniences to our
customers that may be occasioned by such an unlustifiable action.
I would Ike to close on a note of hope, for it is my hope that I will soon be in a
position to inform you that the current conflct is behind us, and that we may all
now focus on the future plans and ambitions of this great company.


Yours Faithfully

Antonio Vasquez
I had to use a free web OCR service as this was sent as a JPG image, sorry for any typos
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Old Nov 30, 12, 3:51 pm   #2
 
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Quote:
Originally Posted by PanGalactic View Post
IB is up the creek without a paddle - but it's not BA's fault (honestly)





I had to use a free web OCR service as this was sent as a JPG image
That's nice, but why are you the lucky recipient? As an IB Avios holder, or as an IAG shareholder?
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Old Nov 30, 12, 4:06 pm   #3
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Quote:
Originally Posted by NeverFirst View Post
That's nice, but why are you the lucky recipient? As an IB Avios holder, or as an IAG shareholder?
IB member!

Sounds quite serious if they are sending this out en masse to all IB members.

It will be interesting to see if the strike action has any effect on our beloved BA, ie: sympathy strikes etc. I sure hope not, that is the last thing we need!
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Old Nov 30, 12, 6:28 pm   #4
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It makes a pleasant change to be informed of the troubles that lie ahead......IAG influenced I suspect.

I only hope they crush these hard line unions once and for all.....they are nothing but a cancer.
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Old Nov 30, 12, 11:10 pm   #5
 
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I also got the letter due to my Iberia Plus account where I credit Avios from my c/c, petrol,...because actually I fly with IB very few times(practically no short haul routes ex Bcn).

The main problem for Iberia are the ridiculous high salaries, low productivity and benefits of their pilots. On top they consider themselves as an untouchable aristocracy that can put the company on its knees every now and then.
I hope that in this occasion the pilot union(Sepla) cannot get away without sacrifices.
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Old Dec 1, 12, 1:48 am   #6
 
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When is strike action likely to happen?
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Old Dec 1, 12, 3:43 am   #7
 
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Quote:
Originally Posted by dubbin View Post
When is strike action likely to happen?
According to a local newspaper, 14th, 17th, 18th, 19th, 20th and 21st Dec.
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Old Dec 1, 12, 4:24 pm   #8
 
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I'm booked on Iberia this summer. Lax, Paris, Barcelona, Madrid LAX. I am reposting to subscribe to this thread via email.
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Old Dec 2, 12, 4:55 am   #9
 
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So it looks like we get a repeat of the BA drama. Maybe the IB unions should have learned from that, but militant unions seem to live in their own world, and reason and common sense are in very short supply. It always surprises me that people think they will get into a better situation by pissing off the people who in the end pay their salary (the customers).

I've booked a refundable backup flight on the 19th in case the strikes go through, I'm not giving them the chance to ruin my holiday. If I need to use it I won't be flying iberia again, that's for sure.
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Old Dec 2, 12, 10:47 am   #10
 
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Quote:
Originally Posted by mirkee View Post
I am reposting to subscribe to this thread via email.
No need to add a post for that, just use the Thread Tools menu.
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Old Dec 4, 12, 7:54 am   #11
 
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Now that Iberia has officially acknowledged the strike, any idea who long it takes to determine which routes will still be flown as "minimum service"?
In the past, have these typically been long-haul or short-haul routes?
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Old Dec 4, 12, 9:18 am   #12
 
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Services to Canary Islands, Balearic Islands and Melilla are protected from strike actions so don't expect any of those flights to be cancelled. In previous strikes they've at least operated one flight on each of the routes and I'd expect a similar approach as transport services strikes are subject to some minimum services regulation dictate by the authorities.

You can see the list of cancelled flights from a previous strike earlier this year on the link below.



http://www.slideshare.net/IberiaAirl...enero-11160568

From my experience with the last series of SEPLA strikes during the first half of this year IB was very consistent on the frequencies that they cancelled,
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Old Dec 4, 12, 3:09 pm   #13
 
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I have got my return back to the UK for Christmas booked on one of the planned strike days, 21 December.

Obviously I am not going to take any chances as I want to be back home so will be booking a refundable ticket with another carrier as a back-up.

Can anyone recall what Iberia did last time they had a strike? If I remember correctly the route I am using TLV-MAD had one of the two daily services cancelled but they were pro-active in rebooking options and offered alternate routings, using BA mainly, to get you to your final destination.

I would assume the same thing would happen again. So can anyone recall what Iberia actually offered up last time, and how far from departure date they opened up the rebooking option. Eighteen days and counting, and it looks from all the reports that the strike is going to go ahead.
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Old Dec 4, 12, 3:58 pm   #14
 
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A related question - will in coming BA flights be impacted if Iberia are the baggage handlers?
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Old Dec 9, 12, 2:57 am   #15
 
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Quote:
Originally Posted by nielsdc View Post
So it looks like we get a repeat of the BA drama. Maybe the IB unions should have learned from that, but militant unions seem to live in their own world, and reason and common sense are in very short supply. It always surprises me that people think they will get into a better situation by pissing off the people who in the end pay their salary (the customers).
I love seeing stuff like this. Honestly, have no problem punching people like this when I see them in person. Maybe you'll learn from that. I guess I live in my own world. Common sense and all when you run your mouth. Oh well, maybe you can cry to someone else about it since I'm one of those customers.
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