October 25, 2009 at 5:41 pm
I saw a report in my newspaper that said that Iberia was giving up the role of national carrier to concentrate on feeding traffic into its Latin American services.
Presumably this will happen if the merger with BA falls through
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSLN35416220091023
By: keltic - 26th October 2009 at 08:07
Well, we are quite used to this surprising elements time to time coming from Iberia. This an old idea, because it owns most of the traffic rights between Spain and South America, a market totally monopolistic in which Iberia feels pretty confortable because they can continue imposing high fares, no competence in the horizon.
They know the European market and traffic to the US and now domestic is lost. Simply they can´t compete with the excesive force of Iberia Trade Union, which like in the case of Alitalia are not used of giving up privileges, and adopting themselves to the current enviroment.
For the moment they still move the strings of power in Spain making the politicians to keep the way with no burdens, and controlling 80% of the market. First via Air Nostrum, and destroying Clickair, once they have been able to get it into Vueling, to control the whole stuff and no opposition from the goverment. An airline whose CEO are still deeply controllled by the goverming powers and who always have the support of “Ministers of Transport”.
As some of us have forecasted, the aim to get into Vueling is not a way to fight against Ryanair which grows and grows, but closing them down. Now they want to create a new Iberia, with lower costs. We all know what it means: emtpy costly Iberia, built a more effective Iberia, and shutting Vueling (they have already done it in the case of former Aviaco or Viva Air). It´s interesting when they say, that the new airline won´t compete with any other branchs. But it´s hardly difficult to imagine any airport without the presence of old Iberia, Air Nostrum or Vueling.
So a sea of problems coming again with the crews strike, which know that the new invention is a kind of controlling them.
Most of Spaniards are no fed up with Iberia, that few people is interesting of what´s going on with it.