Iberia's new airline provokes angry staff reaction

It has been reported in the Spanish press that their flag carrying airline is planning to launch a new start up in November of this year.  The new carrier would be made up of 14 aircraft and 350 staff and would not, according to the airline, be a low cost carrier. 

Iberia plans to recruit new staff for the off shoot and not transfer any exisiting employees over.  They added that "reducing salary base is logical".   There has been an angry reaction from the airline's staff accusing the management of attempting to copy British Airways cost-cutting techniques.

Iberia is expected to sign a merger this month with the British airline in an attempt to address both companies recent poor financial performance.  The 'new' airline is possibly a way Iberia could attempt to get around the Unions and still reduce staffing costs.

Source: The Times