International Airlines Group – the owners of British Airways and Iberia is planning to convert the 18 options it has for Boeing 787 aircraft into orders.

The 787′s will be used in part to replace existing Boeing 747-400 aircraft in the British Airways fleet. Deliveries are scheduled from 2017 to 2021.

Currently, IAG has orders for 24 787′s – split into eight 787-8′s and 16 787-9′s for delivery to British Airways. The conversion of the 18 options don’t specify which version of the 787 Dreamliner will be chosen – although if they’re targeting 747-400 fleet replacement, it would have to be another mixture of 787-8′s for range and 787-9′s for capacity.

IAG has selected Rolls Royce Trent 1000 engines to be installed on their 787 aircraft.

The interesting side effect is for Iberia – who IAG is considering 787′s for. According to IAG they have secured commercial and delivery terms for the aircraft. However, an order will only be made when Iberia has restructured appropriately, with a reduced cost base and a position to grow.

British Airways operates a mixed fleet of Airbus and Boeing equipment, whilst Iberia is an Airbus only operator.

The order will be subject to confirmation and approval by IAG Shareholders.

British Airways are due to get their first Dreamliner in 2013 – however when is a good question due to the ongoing grounding of the 787 that is preventing airlines flying the aircraft, and Boeing from delivering the aircraft.

In what can be only described as good news a majority of the Spanish unions who represent flight attendants of Iberia have called off their strike action after IAG Group/Iberia management  and the Unions have agreed to accept proposals to be made be mediator to bring a conclusion over the cuts that Iberia has been threatening to make.

For the flying public the good news that the strike due to commence on the 18nd to 22nd March is off. Iberia has suffered with 10 days of strikes recently that has affected all operations.

SELPA – the Iberia pilots union will not strike, even through it has not accepted the proposals yet.

The agreement will be binging on all sides – with the proposal that Iberia will cut 3,141 positions instead of 3800 positions that were proposed in April.

Iberia will have to ajust its planes for its viability plans, but Iberia chief executive Rafael Sánchez-Lozano seems accepting of the situation, stating:

“We all had to concede something, but the company is totally committed to keep negotiating with the unions about all the productivity elements that are required to return Iberia to the forefront of the world airline industry”.

So for the passenger, the good news is that flights can return to normal for now without fear of strikes. Alas for some of the staff of Iberia, their future may not be as bright as they find themselves out of a job – at least it’s not as many as the January total.

For those of you who are flying into Spain or with Iberia will note there a strike again this week. The strike will run from March 4th to 8th March.

Iberia has posted lists of cancellations at Iberia.com, but here are the list of cancellations that have been posted already:

• List of Iberia flights cancelled on March 5th
• List of Iberia flights cancelled on March 6th
• List of Iberia flights cancelled on March 7th
• List of Iberia flights cancelled on March 8th

Iberia has so far managed to re-accommodate 38,000 of the 40,000 passengers, with 1,300 flights cancelled this week. The services that are running are under Spanish government minimum guarantees so that 85 percent of long-haul flights, 62 percent of medium-haul and 47 percent of domestic flights are will operate.

However, there is a threat brewing from the side. As most of you are aware, Iberia and British Airways merged to create International Airlines Group. Some members of Unite (a British Trade Union) who are employed British Airways are planning to stage a demonstration outside IAG offices on Wednesday. Hopefully the strikes will not spread between the two airlines (as British Airways had some major issues a few years ago with long and on-going strikes), but you never know.

There is another Iberia strike due to commence on the 18th March, again to run for 5 days until 22nd March, with a threat of strikes over the Easter period too.

Expect more trouble down the line – especially if the British Unions begin to take a stand…

Well day 1 of the Iberia strike has passed, and we’re now into day 2 of it.

Firstly, today’s listed cancellations are at here (from Iberia.com).

Meanwhile protests by striking workers have been met with riot police at Madrid, adding extra chaos to the situation by blocking access roads to the airport.

Iberia is faced with high costs, and is trying to cut them via the wage bill as well as route cuts. Current plans for 3807 workers to be made redundant along with wage cuts isn’t exactly going down well.

If you’ve got plans to be near Madrid Airport, Iberia advise:

“We recommend that all passengers arrive at the airport in advance with their boarding cards which can be found at Check-in Online. At Madrid Barajas T4, we also recommend that you stay close to the airport or arrive by metro to avoid any later problems accessing the airport. “

Good luck if you’re travelling today.

If you’re planning to fly Iberia over the next 5 days (18th to 22nd February), be aware that proposed strike by union members support Iberia staff has gone into effect.

The updated lists from Iberia.com show the following cancellations:

• List of Iberia flights cancelled on February 18

• List of Iberia flights cancelled on February 19

• List of Iberia flights cancelled on February 20

• List of Iberia flights cancelled on February 21

• List of Iberia flights cancelled on February 22

British Airways flights to Madrid, Barcelona and Malaga will also be affected due to ground issues too during the strike action.

It goes without saying: Check before you fly to see if your flight is operating. Changes and re-bookings are open on both BA and Iberia on routes that are affected.

Good luck if you’re due to travel!

Well the numbers are now coming in and it’s not going to be fun if you’re planning to fly on Iberia during the upcoming strike – with 39% of all services cut

The strike is due to take place from 18th February to 22nd February for four days, with 415 of the possible 1062 flights pulled.

The break down looks a bit like this:

• 206 domestic sectors
• 190 medium-haul services
• 19 long-haul flights

The full list from Iberia.com is below for your needs:

• List of Iberia flights cancelled on February 18 due to Iberia strike
• List of Iberia flights cancelled on February 19 due to Iberia strike
• List of Iberia flights cancelled on February 20 due to Iberia strike
• List of Iberia flights cancelled on February 21 due to Iberia strike
• List of Iberia flights cancelled on February 22 due to Iberia strike
• List of Iberia flights, operated by Iberia Regional Air Nostrum (IB8000 to IB8999) , cancelled on February 18 to 22, due to Iberia strike
• List of Iberia flights, operated by Iberia Express (IB3600 to IB3699), cancelled on February 18 to 22, due to Iberia strike

Source: Iberia.com

Iberia will be working with its  partners in the oneworld alliance and another ten airlines to carry its passengers as needed during the strike action.

Iberia has to operate under government decrees in relation to how many flights operate – so the airline will operate:

• 90% of all scheduled long-haul flights will take place during the first strike period,
• 61% of all medium-haul international flights,
• 46% of domestic flights

Rebooking is open for those who have booked directly with Iberia – those who have booked via other sources (such as travel agents) are advised to contact them for further advice.

Sadly, unless Iberia and the unions and bang their heads together, get around a negotiation table and sort this all out, more strikes are due 4th March 8th March and  18th March 22nd March. Expect more disruption and timetable cancellations.

Good luck if you’re on an Iberia flight over the next few days.

It seems IAG are hell bent on making the savings it wants to get Iberia back in the black, and are planning to make 3807 staff after failing to agree with the unions overt the cut.

Iberia have been trimming down the numbers it wants to cut in an attempt to make the carrier profitable again – and are is in the process of cutting routes, creating a lower cost carrier, and unfortunately, cutting jobs.

Iberia and IAG have tried to negotiate with the Unions, and it seems neither side want to agree. On 31st January, Ibera released a plan to trim 3147 jobs via early redundancies, pay cuts and no job losses – this is not to be.

The workers, represented by the CCOO, UGT, USO, ASETMA, CTA-Flight and SITCPLA as well as the SEPLA pilots union, immediately announced strike plans.

The latest action by Iberia seems to be taken directly by the management, targeting 3807 employees who will be at risk at redundancy, with the paper handed over to the unions and the 30 day consultancy period will be initiated.

Iberia claims that pay cuts, along with new productivity and mobility clauses, will keep the number of redundancies to a minimum.

Meanwhile, rearing up is a major Iberia strike is coming with 15 days of strikes to commence in February and March.

The dates are:

• 18th February to 22th February
• 4th March to 8th March
• 18th March to 22nd March

This is only going one way – the ugly way. Whilst strike dates have not been confirmed, its a big cloud over the airline which is bleeding cash, and is in need of some care.

After a short period to negotiate, Iberia and its unions have once again fallen out over job cuts, with 5 days of continuous strike action to take place.

No date has currently been set, although it is expected to take place in the 2nd half of February.

The Unions rejected a plan that would cut the initial 4500 job cuts to 3,147, 30 percent,  lower wage reductions and capacity cuts of 10 percent for this year rather than an initial plan for 15 percent.

Iberia’s problems stem from its short haul unit – which has to contend with low cost carriers including Ryanair, EasyJet, as well as High Speed trains. In addition, the demand for services is dropping due to the financial issues hitting Spain that have resulted having one in four workers is unemployed.

In response, Iberia have created a lower cost unit called Iberia Express – which has gone down like a lead brick with the unions as it has a much lower cost base than Iberia.

Add all this together, and you’ve got a recipe for trouble.

As no dates have yet to be confirmed for the action, automatic rebooking won’t be a possibility for now. Personally, I’d have contingency plans if I was travelling on Iberia towards the end of this month….

We’ve been waiting to see how the cuts at Iberia are going to strike… well here they are.

From Mid-January 2013, the short haul following routes are withdrawn:

• Athens
• Cairo
• Istanbul

From 1st April, the following Long Haul services are facing the axe:

• Havana
• Santo Domingo
• San Juan (re-route via Miami)
• Montevideo (via other Iberia destinations)

The routes that are being dropped are mainly holiday routes – with Iberia to contact you for re-routing via a different airline or a full refund if needed.

There will be capacity increases in some routes to try and improve profitably, but Iberia needs to get itself in shape – quickly. With another strike around the corner (14^th, 17^th, 18^th, 19^th, 20^th and 21^st December currently), time is not on Iberia’s side.

And the last thing IAG would want is a protracted fight like British Airways and its cabin crew strike a couple of years ago…

With one year gone since the word “Avios” formally became part of the frequent flyer list of words, it seems Avios.com, British Airways and Iberia are having a bit of a party.

The skinny: 25% off redemptions using Avios or Avios+Money bookings (Avios part only).

Bookings must be made between for travel between 14/11/12 & 19/11/12 for departures from 14/11/12 & 31/05/13.

And it seems to be available in ALL classes of travel.

Now, this is to Zone 4 of travel and beyond. For those who need that spelt out for them in a list of destinations…

Abuja, Cairo, Jeddah, Kuwait, Tel Aviv, Abu Dhabi, Accra, Bahrain, Baltimore, Bermuda, Boston, Chicago, Doha, Dubai, Lagos, Montreal, Muscat, New York, Philadelphia, Riyadh, Toronto, Washington, Antigua, Atlanta, Barbados, Beijing, Bangalore, Calgary, Cancun, Cape Town, Chennai, Dallas, Dar Es Salaam, Delhi, Denver, Entebbe, Grand Cayman, Grenada, Houston, Hyderabad, Johannesburg, Kingston, Las Vegas, Los Angeles, Luanda, Lusaka, Male, Mexico City, Miami, Montego Bay, Mumbai, Nairobi, Nassau, Orlando, Phoenix, Port Of Spain, Providenciales, Punta Cana, San Diego, San Francisco, Seattle, St Kitts, St Lucia, Tampa, Tobago, Trinidad, Vancouver, Bangkok, Hong Kong, Mauritius, Rio De Janeiro, Sao Paulo, Shanghai, Tokyo, Buenos Aires, Singapore, Sydney.

Now for the nitty gritty:

• The 25% discount does not apply to: 25% discount does not apply to the taxes, fees and charges which are payable in full on all bookings.
• Exculdes Zone 1,2,3 flights from the offer, Zone 4-9 flights are good though
• Flights depart London.
• Flights are subject to Avios/BA/Iberia terms and conditions.
• Bookings must be made between for travel between Some flights may have no availability or have very limited availability, particularly during peak periods and periods of high demand.
• The 25% Avios discount on reward flights is only available on British Airways and Iberia operated flights and codeshare flights.

It’s one hell of an attractive offer, even when having to stomach the taxes and fees… and if your travel need requires BA or Iberia and you have the Avios, I’d be looking very carefully at this…

Bookable at:
- https://www.britishairways.com/main/spend-avios/?source=MNVEXC2_spend_avios British Airways
- http://www.avios.com/spend/cp/6day-birthday-sale - Avios.com

It seems IAG’s patience with Iberia is running out quickly, as it announced today a sharpening of the job axe.

Up to 4500 positions are up for the cut, along with five long haul aircraft and 20 shorthaual aircraft to be removed for the Iberia mainline fleet (156 planes down to 131 planes).

This will also reduce Iberia’s routes by 15%, to focus on the profitable routes.

IAG revealed a 30% drop in pre-tax profits due to Iberia’s poor performance, as well as the purchase of British Midland Airways (better known as BMI), and that olde bugbearer of airlines – fuel.

Willie Walsh, CEO of IAG says:

“The group performance is coming back to the levels seen in 2011 and this is particularly true if you strip out the BMI losses of 31m euros in the quarter,”

“However, there remains a strong difference between the performances of British Airways and Iberia.”

IAG flagged that Iberia’s future wasn’t rosey in the last quarter report – and that jobs would be on the line. That promise has now been delivered sadly.

Rafael Sanchez-Lozano, Iberia’s CEO puts it bluntly.

“Iberia is in a fight for survival,”

“It is unprofitable in all its markets.

“Unless we take radical action to introduce permanent structural change, the future for the airline is bleak.”

Ouch.

As well as the 4500 jobs to go, there will also be what IAG describes as “permanent salary adjustments to achieve a competitive and flexible cost base”.

Or pay-cuts and cuts in conditions to you and me.

Iberia has gone out to the Unions (who were expecting 7000 jobs to go to the axe), but has set itself a deadline of 31st January 2013 to have all deals agreed.

With Iberia burning through €1.7 Million a day, there is motivation to sort something out, with the ominous threat of if no agreement is reached, deeper cuts will have to be made.

This comes at a time where IAG itself is going to make a 100% control bid of Vueling, purchasing the remaining stake of Vueling for €113 million.

IAG believes with Vuelings lower cost base, it can create more jobs and operate more lower cost services.

How it will convince the regulators is another matter completely.

Sadly, this is an indication of the weakeess of the Euro-area. Everyone is trying to drive down costs – at all costs it seems.