Iberia will reduce its fleet and be a smaller airline in five years

Destinations

In previous crises, such as the Severe Acute Respiratory Syndrome (SARS), identified in 2002, or the terrorist attacks of the Twin Towers, in New York, on September 11, 2001, the drop curve and demand recovery was V-shaped, but in this case, we have gone from a V to a U and now we are already in an L, Gallego has indicated, who stressed that we are facing the worst crisis in the history of aviation.

In addition, companies will have to face repayment of loans obtained during the pandemic, which will make recovery difficult.

Iberia will operate in July, on short and medium radio routes, a program that will be only a fifth of what it would have had under normal circumstances, due to the Covid-19 crisis, he added.

In long haul, the company’s program, which focuses its effort on regain customer trust On flight safety, it has also been greatly reduced and is conditioned on how restrictions, prohibitions and quarantines evolve.

Luis Gallego, President of Iberia.

As detailed by its president, Iberia entered this crisis better than many of its competitors due to the demanding transformation carried out since 2012, but its duration has made the impact “reach us all”, so again forced to reinvent itself.

Gallego considers that it is time to tackle structural measures that support the tourism sector and airlines how to unlock the arrival of AVE to terminal T4 from Barajas airport, which would increase half a million a year the passengers of the hub from Madrid, boost the single european sky and reduce rates.

Competition, after the crisis, will be even more difficult, since airlines that were already without a viable future before the pandemic “are being rescued with hardly justifiable aid,” said the president of Iberia.

Has advocated for a Scrappage scheme for European aviation, where the Spanish Government “has a golden opportunity to lead it”, to help airlines get out of the crisis and contribute to a more sustainable industry.

The airlines will not be able to face the renewal of the fleet aimed at greater sustainability, since, with old planes at very cheap prices and the price of fuel at historic lows, the investment in clean technology appliances “is made very uphill with the huge losses caused by the Covid-9, “he said.

If the European Union (EU) develops a Renewal Plan that allows the replacement of old or dirty technology aircraft to be rewarded with new-generation ones, that aid would have a multiplier effect, according to Gallego.

On the one hand, it would allow reduce CO2 emissions (approximately 30% in the Iberia long-haul fleet and 15% in the case of the short-haul fleet), which would always be worth much more than the amount of aid received.

Second, to power face the purchase of the new plane, money flows along the aeronautical ecosystem, generating benefits that result in taxes for governments, such as Spanish, reinforcing the I + D + I and creating tens of thousands of jobs, he said.