Iberia to reduce pilot salaries by 20%; save EUR62m annually

Iberia announced (17-Apr-2012) plans to reduce pilot salaries by 20% as it seeks to reduce expenses and increase productivity by 25%. The measure, which will affect 1600 pilots, is expected to save the airline EUR62 million in annual labour costs however may potentially escalate its dispute with striking staff. Members of the SEPLA pilots union are currently striking every Monday and Friday until 20-Jul-2012 to protest against the airline's creation of low cost subsidiary Iberia Express on 25-Mar-2012. [more - original PR]