Iberia pilots willing to cut salaries

Iberia pilots have announced that they are prepared to accept a reduction in salaries of what amounts to 26 per cent. They have also said that they will agree to a 50 per cent reduction in pay for new pilots. The 26 per cent is made up of a pay freeze until 2015 and 10 per cent reduction in wages for all 1,400 Iberia pilots. They are also offering a productivity deal until 2015.

The pilots are asking in return for more investment in aircraft and greater integration with the low-cost offshoot Iberia Express, which was launched last year to compete with budget airlines such as Vueling, Ryanair and Easyjet.

Iberia is now proposing to lay off 3,836 staff instead of the 4,500 announced under a previous restructuring plan, with a 18 per cent decrease in salaries for ground staff, 23 per cent for pilots and 28 per cent for cabin staff.

The loss-making Iberia merged with British Airways in 2010 to make the International Airlines Group.