BA parent confirms launch of new budget airline

Posted 08/10/2011

Willie Walsh is heading for a new confrontation with airline unions this week following confirmation that Iberia parent company IAG, of which he is chief executive, is to launch a new low-cost carrier.

Iberia Express, which will be based at Madrid, Barajas airport, will launch with four aircraft next summer and it is expected to have 13 aircraft by the end of 2012.

IAG is hoping the budget carrier will provide stronger competition on short and medium-haul routes for Ryanair and EasyJet.

However, the Spanish pilots' union said plans for the budget airline broke agreements signed with Iberia during its merger with British Airways to create IAG. Iberia Express will use existing Iberia aircraft but it will recruit new pilots and cabin crew on lower salaries and different terms and conditions to those at the main airline.

Unions fear that, over time, Iberia will transfer domestic and European services to Iberia Express leading to job losses.

The move looks set to embroil former British Airways chief executive Willie Walsh in a second major industrial dispute in two years. His 18-month battle with BA cabin crew was only settled when Walsh transferred to IAG last year, leaving his replacement Keith Williams to negotiate a settlement with the unions.

 

By Linsey McNeill

Originally published 8 Oct 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/191a8136/l/0L0Stravelmole0N0Cstories0C11497110Bphp0Dmpnlog0F1/story01.htm