| > | | | | It is not known yet how this will impact the |
| Cabin staff of the Spanish Iberia Airline went on a | | | | downward spiral in Spanish tourism. Spain is doing |
| 48-hour strike, leading to over 400 flights being | | | | all that it can to revive this failing industry, including |
| cancelled and thousands of passengers being | | | | a deal with English football club Liverpool giving the |
| inconvenienced. | | | | Spanish Tourism Board (Turespana) global rights |
| Cancelled flights include domestic, European as well | | | | to promoting Spain as a travel destination. |
| as trans-Atlantic flights. Over 440 flights out of | | | | In order to revive its flagging business, Iberia |
| 2000 have been grounded. This strike has been | | | | Airlines have also considered other options, among |
| called by the unions CTA and SITCPLA, in protest | | | | which are: |
| of a four-year pay freeze for around 4,300 cabin | | | | * A merger with the equally fragile British |
| staff. Another cause for protest is that other | | | | Airways, which seems to have fallen through as a |
| Iberia workers, for example pilots, have seen | | | | result of the current airline strike |
| wages rise in the meantime while their own stay | | | | * A code sharing agreement with GOL, a carrier |
| stagnant. | | | | based in Sao Paulo, Brazil. This is aimed at |
| Iberia has expressed its regret that labor unions | | | | enhancing access to the Brazilian, Spanish-speaking |
| should demand pay increases, especially in view of | | | | market. If this is implemented, the two companies |
| the dismal scene in the aviation sector throughout | | | | will also share Frequent Flyer points, resulting in a |
| the globe. The strikers have refused to back | | | | stronger loyalty program. |
| down, however, and have planned further | | | | These are all parts of a structural overhaul |
| stoppages for November 10 and 11. | | | | designed to counter the steeply declining revenues |
| Worst affected was Madrid's Barajas airport, | | | | caused by the global recession. Other components |
| where over 200 flights failed to take off as 600+ | | | | of this overhaul include - |
| workers joined the staff strike. Passengers have | | | | * creating a new subsidiary airline by 2011 that will |
| been deeply inconvenienced by the strike, and | | | | handle its short-haul and medium-haul flights. |
| some are greatly enraged at Iberia for refusing to | | | | * Pay freeze throughout the company for 2010 |
| pay for an extra day's hotel stay caused by the | | | | and 2011, or until the new airline is in operation. |
| strike. However, Iberia has promised to offer | | | | * Laying off cabin staff above the age of 55, |
| alternative flight dates or to refund the tickets. | | | | amounting to about 200 ground staff. |
| However, Madrid's inflation rate is extremely high | | | | * Saving up to 37 million euros a year in 2011 and |
| at the moment - the official figure is between 3.6 | | | | 2012 in overhead costs. |
| and 4 per cent, which is one of the highest in all | | | | The major positive fallout of Iberia's restructuring |
| of Europe. This puts the workers in a position | | | | and Spain's declining tourism is that this is an |
| where living slowly grows closer to the untenable, | | | | extremely lucrative time to travel in Spain. With |
| especially in view of the jobs being lost in the | | | | Spanish hotels and airlines offering packages at |
| global recession and added pressure on the | | | | all-time low rates, this becomes the best time to |
| earning members of the family. | | | | capitalize on the opportunity. |