MADRID, Spain (AP) -- A pilots strike that could ground about 240 daily flights throughout the week began Monday after talks between the Spanish flagship carrier Iberia and union leaders ended without agreement.þþIn a statement early Monday, the airline said it ''will be obliged to cancel a number of flights'' through next Sunday because of the strike.þþPilots fear Iberia's investment in CATair, a new low-cost airline, will lead to job cuts, and are seeking job guarantees. Iberia denies it plans job cuts.þþIt was unclear how many of Iberia's 1,900 pilots would take part in the strike, but the airline fears that 1,500 flights and around 200,000 passengers could be affected over the six days.þþTransport Ministry rules that require minimum service levels during strikes, including one flight a day on each route, mean the hardest-hit routes would be those within Spain and to other destinations in Europe.þþMost routes to the United States would be unaffected because there is only one flight per day, but the Madrid to Barcelona route -- which has 44 flights a day -- could be hard hit.þþKeen to reduce labor costs and eliminate unprofitable flights, Iberia has been phasing out services from Barcelona's airport to make way for the October launch there of CATair.þþIberia hopes to route most flights through its new state-of-the-art hub in Madrid, where profitable long-haul flights originate. Some 350 Iberia pilots currently fly from Barcelona.þþIberia and four partners announced the new carrier in April. It will have a 20 percent voting stake and 80 percent equity through a 24 million euro ($30 million) investment.þþIberia will not assume management of CATair, thus freeing itself from high labor costs associated with its own operations.þþCATair expects to have a 30-aircraft fleet by 2008.þþ
Source: NY Times
