Iberia (airline)

A330-300 by Iberia and the Eagle Patrol on the 75th anniversary of the Air Force.

T4 from Adolfo Suárez Madrid-Barajas Airport, Iberia hub.

Iberia (IATA: IB, ICAO: IBE) is the flag airline of Spain, founded in 1927 under the name of Iberia, Air Transport Company. The current company was created on December 23, 2009 under the name of Iberia Líneas Aéreas de España, S.A. Operadora Unipersonal, while the historical company disappeared on January 21, 2011 when it was absorbed along with BA Holdco by International Consolidated Airlines Group. Its head office is in Madrid and was listed on the Madrid Stock Exchange from April 2001 to January 2011, when it was replaced by its parent company International Airlines Group, as a result of the merger with British Airways. in 2011.

Its base is at the Madrid-Barajas Airport. €327 million in 2007, €56.7 million in profits in 2006 and €395 million in profits in 2005) and carried 24.3 million passengers. The Iberia Group flies to 108 destinations in 42 countries. On November 12, 2009, Iberia confirmed that it had reached a preliminary agreement of understanding with British Airways to merge with it with the signing of a binding agreement, which only came about when the value of British Airways shares exceeded those of Iberia, being in April 2010 the signing of the merger contract. In July 2010 the European Commission approved the operation. For its culmination, in November 2010, the shareholders of Iberia and British Airways gave the go-ahead to the merger of the two companies, the last necessary requirement to carry out the merger of one of the most powerful groups in the sector.

The resulting new holding company, called International Airlines Group (IAG), is the sixth airline in the world by revenue and third in Europe. Iberia currently has a subsidiary (Iberia Express) and has a franchised company (Air Nostrum).

History

The beginnings

Lockheed L-1049G Super Constellation by Iberia.

It was founded on June 28, 1927 by the Biscayan businessman Horacio Echevarrieta and the German Lufthansa during the Primo de Rivera dictatorship as a monopoly of Spanish air transport. It was planned that the first commercial trip of Iberia would be on December 14, 1927 between Madrid and Barcelona, with Alfonso XIII as an exception passenger. However, the first flight operated by Iberia was a Barcelona-Madrid flight, leaving two hours before the official flight. The intention was that Alfonso XIII could witness the first landing at the Carabanchel Airport, currently Cuatro Vientos airport, but weather issues forced this plane to arrive later than expected. In 1928 it had grown, with three Rohrbach Ro VIII Roland aircraft, which were tri-engines with a capacity for ten passengers.

King Alfonso XIII on the company's opening flight in 1927.

In 1929 it was forced to contribute its routes and planes to the recently created CLASSA, at the request of the Military Directorate's opinion to form a monopoly with a single company that would group all those existing in Spain at that time. Iberia retained part of the shareholding of CLASSA. After the proclamation of the Second Republic, CLASSA was dissolved and thus LAPE was created, which absorbed all of CLASSA's routes and assets. All CLASSA shareholders received compensation for this. During all the years of existence of CLASSA and LAPE, Iberia was a dormant company with no real activity, but despite this, it presented its balance of accounts annually in the commercial registry.

Reactivation of Iberia

McDonnel Douglas DC-10 by Iberia on flight.

In 1937, during the Spanish civil war, Iberia was reactivated and became the airline of the rebel side, with headquarters in Salamanca ^{[citation required]}, flying some Dragon Rapide and Junkers 52. Until 1939, when it made its first flight between Madrid and Lisbon, it was an exclusively national airline. Lisbon would be followed by London and Paris. Iberia was nationalized in 1944,^{[citation required]} becoming part of the National Institute of Industry. On September 22, 1946, it became the first airline to fly between Europe and South America,^{[citation required]} by establishing the itinerary between Madrid and Buenos Aires, with stops in Villa Cisneros, Natal and Rio de Janeiro. The plane used for the occasion was a Douglas DC-4, and the first flight attendants also flew on it. In 1954 the flight between Madrid and New York was inaugurated. For this, a Lockheed Constellation device was used.^{[citation required]}

In the second semester of 1961 Iberia began to use jet planes. Thus, three Douglas DC-8 aircraft were added to be operated on long-haul routes. Shortly after, in 1962, French Caravelle aircraft, manufactured by Sud Aviation, were acquired to cover the European lines. From then on, Iberia's fleet grew, driven by the strong rise in the increase in tourist tickets and by the growth in disposable income in Spain and in Western Europe as a whole.

The route chosen was from Madrid to Barcelona. At this time the current traffic congestion did not exist, so the service consisted of one plane in Madrid and another in Barcelona that as soon as they were full, they headed for the other point on the route. However, with the increase in traffic at airports, this operation had to be discarded and set departure frequencies at peak times, a policy that inaugurated the Spanish Monarchy. The political transition towards the democratic system convinced the new heads of the INI that it was necessary to carry out a new corporate identity in the airline that would promote the new image of Spain in world markets.

On September 10, 1981, Picasso's Guernica arrived on a company plane. In 1987 the Amadeus computer system was released, the largest computerized reservation system in the world to date. The initiative corresponded to Iberia together with its partners in this business, Deutsche Lufthansa and Air France.

Between the late 1980s and early 1990s, Iberia undertook a massive modernization of its fleet. The new McDonnell Douglas MD-87, Airbus A320, Airbus A340 and Boeing 757 replaced the old Douglas DC-9, Douglas DC-10 and Boeing 727. In 1991 the first international program was created and implemented in Europe. In 1992, Iberia became an official sponsor of the Barcelona Olympic Games and the Seville Universal Exposition.

Crisis and privatization

At the beginning of the 1990s, the directors of the National Institute of Industry (INI), owner of the majority of the capital of Iberia, proposed a growth strategy for the company, with the aim of preparing the liberalization of the air markets in the European Union, planned for 1994. The expansion of the company was made in the Latin American market. The acquisition of a part of the property of Aerolíneas Argentinas, of the Venezuelan Viasa and 35% of the Chilean Ladeco, Líneas Aéreas del Cobre was carried out. The result of this strategy, which planned to provide Iberia with assets against a merger movement between the European flag lines, was a failure. The terrible management of Airlines, the difficulties to launch a management of the company from Iberia, in addition to the terrible market environment created by the Gulf War in 1991, led to an unsustainable situation for the Spanish airline. The losses were heavy for Iberia. The INI, through the Spanish Government, had to undertake two capital increases. The authorization from the European Commission for the Spanish State to contribute capital managed to get Iberia out of the technical bankruptcy in which it was immersed in 1994. Shortly after, Iberia's readjustment process was launched, which went through the development of four points: change of directors and managers, orderly exit of the Latin American investees, deep cost reduction and internal readjustment and start of the definitive privatization process of the Spanish airline. In 1999 it became part of the Oneworld alliance, together with the airlines British Airways and American Airlines, among others.

The year 2001 also marked a before and after in the history of the company. With its IPO in April of that year, the company's privatization process culminated and it returned to the private sphere, in which it was born, although most of its history was public. The following year it became part of the Ibex 35, where it was listed until 2011 due to its merger with British Airways. In 2002 the company sold its subsidiary Binter Canarias.

On October 25, 2008, Iberia withdrew the MD company aircraft from its fleet, specifically the MD-88 model, on that day the last flight of the aforementioned aircraft was made. The route followed was Alicante-Madrid.

Iberia has a high market share on Spanish routes and between Europe and Latin America.

Iberia today

Iberia headquarters in Madrid.

Iberia House ("House Iberia"), Iberia offices in London.

Iberia Airbus A340-300 entering Iberia Maintenance facilities at Barcelona Airport.

Iberia Tractor Cargo towing luggage containers at Madrid Barajas Airport.

Currently, Iberia LAE Operadora flies to 76 destinations in 47 countries from its base at Adolfo Suárez Madrid-Barajas Airport. The Iberia Group flies to 126 destinations in 47 countries and codeshares with other airlines to 224 destinations in 50 countries. With a fleet of 148 aircraft, it makes about 1,000 daily flights. In 2010, it transported 24.4 million passengers and 262,402 tons of cargo. In 2005 it introduced the new Business Plus class on its A340 aircraft, which was improved in 2009-2010 with seats that are completely horizontal and menus designed by renowned Spanish chefs.

Iberia carries out aeronautical maintenance, an activity that it provides to its own fleet and to that of 100 other companies, including some of the most important in Europe, at its maintenance base in La Muñoza, in Barajas. Iberia is the leading handling operator (assistance to planes and passengers) at all airports in Spain; It has among its clients more than 200 airlines.

On the other hand, Iberia was the founder and still has a percentage of ownership of Amadeus, a computer reservation system. In addition, together with Swissair, he created Iberswiss, a company that produced more than 14 million trays of food a year and which he later sold to Gate Gourmet, a company in the airline catering sector. She participates in the tourist travel business through the tour operators Viva Tours and in urgent transport with Cacesa.

The alliance reached with American Airlines and British Airways, together with the entry into Oneworld, place Iberia in one of the large groups that are being formed with a view to competing in a global market.

Iberia franchises its brand to another independent airline, Air Nostrum, which is owned by Nefinsa and Caja Duero, and which operates its own network of regional flights that are marketed by Iberia.

In 2006 Iberia closed its Barcelona base of operations and created a low-cost airline called Clickair, based at Barcelona airport. One year after its first flight, Clickair became the leading airline at Barcelona airport. In 2009 Clickair merged with its rival Vueling. Iberia has 45% of the shareholding of the resulting company, which has recently been increased to more than 90%.

ON October 15, 2013, Iberia presented its new logo and slogan. The first aircraft with the new logo entered service at the end of 2013.

In May 2017, Iberia will implement the new Premium Economy cabin for intercontinental flights. The airline becomes the first Spanish airline to offer this cabin model, an intermediate product between the economy cabin and the Business Plus executive cabin.

In 2020 its president Luis Gallego stated that the fleet could be reduced due to lower demand, as a result of the effects of the COVID-19 pandemic.

On September 9, 2020, Javier Sánchez-Prieto succeeds Luis Gallego as President.

Merger with British Airways and creation of International Airlines Group (IAG)

In July 2009, Iberia and British Airways began negotiations to merge. It was fundamentally a merger at an economic level since both companies would maintain their own brands within the new airline, which would become one of the largest international airline groups in the sector: the third airline in the world. Both brands will be maintained according to the well-known nationality structures of both companies, published in the IAG S.A Registration Document, to avoid the loss of flight rights, especially to Latin American countries, since these are bilateral agreements between states.

In July 2009, Antonio Vázquez Romero took over from Fernando Conte as president of Iberia.

On November 12, 2009, the boards of directors of Iberia and British Airways finally gave the go-ahead to the merger. A new company was created, International Airlines Group, owner of British Airways and Iberia. The corporate and tax headquarters of the new holding were located in Madrid, while the financial one was in London. In mid-November 2010, Iberia submitted the agreement to its respective shareholders for their approval, and the operation was carried out approximately one month after its approval. On January 20, 2011, Iberia and British Airways ceased to be listed on the stock market to be replaced by IAG from the 24th.

Iberia and British Airways.

Following the merger between Iberia and British Airways in January 2011, both airlines belong to the International Airlines Group (IAG), which is listed on the London Stock Exchange and on the Ibex 35. Its headquarters are in Madrid and the financial and operational in London.

On October 6, 2010 Iberia, British Airways and American Airlines officially announced, after receiving the approval of the European Union, their Joint Business Agreement in the operation of the North Atlantic air routes. During 2010 Iberia returned to profits, after losses were recorded in 2009 after 13 consecutive years of positive results. Specifically, net profit amounted to 89 million euros, compared to the 273 million loss in 2009. However, the operating result was slightly negative - three million euros -.

In November 2010, Iberia announced the reopening of the base at Barcelona airport basing an Airbus A340 to start operations to America. On March 29, 2011, the base in Barcelona was officially opened, operating the Barcelona-Miami route three times a week, the airline also announced the opening on June 19 of the Barcelona-São Paulo route, which opened with 100 % occupancy.

In October 2011, Iberia's board of directors approved the creation of a subsidiary for short and medium-haul flights, which was called Iberia Express. The capital of the new subsidiary was 100% owned by Iberia. It began operations in April 2012. According to the company, the objective of the new subsidiary is to achieve lower production costs in the short and medium haul business, which is currently in deficit.

Merger disputes

Iberia Express Airbus A320, a subsidiary for short and medium-radio flights.

Air Nostrum CRJ-1000, operating as Iberia Regional.

Several unions have stated that since the integration process became effective, British Airways has been favored, which increased its offer in Spain by 23%, although in reality all it has done is put flights from London to Spanish coastal destinations. Iberia has reduced its offer by 15%, the drop being 4.6% if the data from the Iberia Regional-Air Nostrum franchise and the affiliated airline Vueling are added. The truth is that British Airways has increased its supply from its London Heathrow hub due to the good behavior of demand to and from London, while Iberia's supply has had to adapt to the drop in demand at its Madrid hub due to the crisis. At the same time, in the Judgment of the National High Court "the plaintiffs have in no way demonstrated that profitable routes have been ceded to Iberia Express or British Airways [...]. On the contrary, it has been shown that the defendant company has stopped operating only routes that were not profitable". Iberia and British Airways have different markets, so that the growth of one in its market can never be to the detriment of the other. In addition, Iberia has to reduce its offer to eliminate unprofitable frequencies or routes and it will grow when its income statement is positive. The merger has brought Iberia 109 million euros in synergies in just over a year and a half.

The same unions say that the growth formula of the two companies is different, since while the British airline has a forecast of incorporating 39 new aircraft (of which: 12 Airbus A380, 3 Boeing 777 and 24 Boeing 787) and 800 pilots. The reality is that, since the beginning of 2013, Iberia is adding Airbus A330-300 aircraft to a total of 8 aircraft and is renewing the interiors of all the A-340/600, in addition to having the purchase option for another 44 aircraft.

Likewise, shortly after the announcement of the creation of Iberia Express, the Spanish Union of Air Line Pilots (SEPLA) criticized the measure as they consider that it is not new. They cite that previous similar initiatives such as Viva Air, Binter Mediterráneo or Clickair caused Iberia to lose close to 200 million euros.

However, Clickair, converted into Vueling, is a successful company that is now part of Iberia, and was awarded four of the eight prizes awarded by the World Low Cost Airlines Congress last year, in addition to the main distinction as the best airline of the year. 2012 being the fourth consecutive year that Vueling receives recognition from the sector.

Likewise, SEPLA affirmed that the final objective behind the creation of this airline was to deliver and give away the Iberia parent company to the British airline British Airways. The National Court in its Judgment of July 4, 2013 He recognizes that the company's situation is compromised, due to the economic crisis, the high fuel prices and the high labor costs, for which he considers essential "the adaptation of its costs and staff, as well as the increase in productivity". It also endorses the decisions that have been taken by the company.

Affiliate Companies

• Dependent societies
  • Cargosur

• Partner societies
  • Iberia Cards (43.5%)
  • Multiservices Aeroports (49%)
  • Iber-América Aerospace (65%)
  • Aviation Logistics Company (50%)
  • Cuban Aircraft Maintenance Company (50%)
  • Handling Equatorial Guinea (51%)
  • Air Miles Group (25%)
  • Snake (39%)
  • International Supply Management (49%)
  • Noamar Air Handling Holdco (40%)
  • Madrid Aerospace Service (50%)
  • Vueling (45.85%)
  • Amadeus IT Group (9%)
  • Acquira
  • Opoco
  • Corjet.

Destinations

The Iberia Group «operates 126 destinations in 47 different countries, to which must be added an additional 224 in 50 countries thanks to code-share agreements with other airlines». While it has a significant presence in flights to America, Iberia's main weakness is the routes to Asia since it has few of its own destinations, most of which are codeshare.

Codeshare Agreements

Iberia has signed codeshare flight agreements with the following airlines:

• American Airlines*
• Avianca (Star Alliance)
• British Airways*
• Boliviana de Aviación
• Bulgaria Air
• Cathay Pacific*
• Copa Airlines (Star Alliance)
• Czech Airlines (SkyTeam)
• The Al
• Iberojet
• Finnair*
• Hainan Airlines
• Japan Airlines*
• LATAM Brazil
• LATAM Chile
• LATAM Ecuador
• Qatar Airways *
• Royal Air Maroc*
• Royal Jordann*
• S7 Airlines*
• TAG Airlines
• Ukraine International Airlines
• Vueling Airlines*

* indicates membership of the Oneworld alliance or is a subsidiary thereof.

Fleet

Destinations A350 de Iberia

Destinations	Airports
Buenos Aires	Buenos Aires-Ezeiza International Airport
Bogotá	El Dorado International Airport
Chicago	Chicago-O'Hare International Airport
Mexico City	International Airport of Mexico City
Lima	Jorge Chávez International Airport
Los Angeles	Los Angeles International Airport
New York	John F. Kennedy International Airport
Quito	Mariscal Sucre International Airport
Santiago de Chile	Arturo Merino Benítez International Airport

The Iberia fleet —not counting the subsidiaries Iberia Express, Iberia Regional or Level— averages an age of 9.3 years, as of January 2023, and is made up of the following aircraft:

Iberia LAE Fleet

Airplane	In service	Orders	Passengers				Entry into service	Tuition	Antiquity
			P	Y+	And	Total
Airbus A319-100	6	0	0	0	141	141	2022	EC-LEI	14.1 years
								EC-KUB	14.3 years
			14	0	108	122	2004	EC-KHM «Real Owl»	15.5 years
								EC-JDL "The Plains of Aridane"	18.1 years
								EC-JEI «Horacio Echevarrieta»	18.1 years
								EC-JAZ «Las Médulas»	18.5 years
Airbus A320-200	13	0	0	0	180	180	2002	EC-MDK «P. N. Picos de Europa»	8.2 years
								EC-MCS «Playa de Los Lances»	8.4 years
								EC-LXQ «Ifach Penn»	9.5 years
								EC-LVD «Valle de Mena»	9.8 years
								EC-LUL « Onis Songs»	9.9 years
								EC-JFN « Snowland»	17.9 years
								EC-KOH «Fontibre»	18.5 years
								EC-IZR «Urkiola»	18.6 years
								EC-IZH « Saint Peter of Roda»	18.7 years
								EC-ILS “Cameros saw”	20.5 years
								EC-IEG «Costa Brava»	21.1 years
								EC-IEF « Loarre Castle»	21.1 years
								EC-LRG «Everything»	21.6 years
Airbus A320-251N	15	37	0	0	186	186	2018	EC-NVS «Jorge Loring»	0.3 years
								EC-NTQ «Leonardo Torres Quevedo»	0.6 years
								EC-NTP «Envera»	0.7 years
								EC-NTO «La Muñoza»	0.8 years
								EC-NTA	1 year
								EC-NTI «John of the Deer»	1.3 years
								EC-NJY «#GRACESHÉROES»	2.3 years
								EC-NJU «María Bernaldo de Quirós»	2.4 years
								EC-NFZ «Virgen de Loreto»	3.3 years
								EC-NER «Barajas»	3.3 years
								EC-NDN «Four Winds»	3.6 years
								EC-NCM «Amelia Earhart»	3.8 years
								EC-MXY «Getafe, Cuna de la Aviación Española»	4.6 years
								EC-MXU « Eagle Patrol»	4.7 years
Airbus A321-200	11	0	0	0	217	217	2001	EC-JZM « Iberian Imperial Eagle»	16 years
								EC-JRE « Uncastillo Chapel»	16.7 years
								EC-JQZ «Generalife»	16.7 years
								EC-JGS «Guadalupe»	17.7 years
								EC-IXD «Valle de Arán»	18.7 years
								EC-IJN «Mérida»	20.2 years
								EC-ILP «Peñíscola»	20.8 years
								EC-ILO «Nerja Cave»	20.9 years
								EC-IGK « Costa Cálida»	21.4 years
								EC-HUI «La Rioja Autonomous Community»	23.6 years
								EC-HUH «Benidorm»	23.7 years
Airbus A321XLR	0	8	TBA	TBA	TBA	TBA	2023
Airbus A330-202	9	0	19	0	269	288	2016	EC-MUD «Johannesburg»	4.9 years
								EC-MSY «Santo Domingo»	5.1 years
								EC-MNL «Tokio»	6.1 years
								EC-MNK «Bogotá»	6.2 years
								EC-MMG «Santiago de Chile»	6.3 years
								EC-MLP «Lima»	6.4 years
								EC-MLB «Iberoamérica»	6.5 years
								EC-MKJ «Montevideo»	6.6 years
								EC-MKI «Puerto Rico»	6.7 years
Airbus A330-302	8	0	29	21	242	292	2013	EC-MAA «Rio de Janeiro»	8.8 years
								EC-LZX «Madrid»	8.9 years
								EC-LZJ «Miami»	9.1 years
								EC-LYF «Juan Carlos I»	9.3 years
								EC-LXK «El Salvador»	9.5 years
								EC-LUX «Panama»	9.8 years
								EC-LUK «Costa Rica»	9.9 years
								EC-LUB «Tikal»	10 years
Airbus A350-941	16	0	31	28	293	352	2018	EC-NXC « Spanish Paralympic Team»	0.1 years
								EC-NXE «City of Quito»	0.2 years
			0			321		EC-NXD «Pau Gasol»	0.3 years
								EC-NVR «Teresa Helbig»	0.6 years
			31	24		348		EC-NSC «Hi Madrid»	1.2 years
								EC-NMZ « Flying»	2 years
								EC-NLP «#Thank youHeroes»	2.2 years
								EC-NJM «Flamenco»	2.7 years
								EC-NIS «Talento a Bordo»	2.8 years
								EC-NIG « Spanish Basketball Selection»	3 years
								EC-NGT «Spanish Olympic Team»	3.1 years
								EC-NDR « Juan Sebastián Elcano»	3.7 years
								EC-NCX «Spanish Soccer Selection»	3.8 years
								EC-NBE « Prado Museum»	4 years
								EC-MYX «Paco de Lucia»	4.5 years
								EC-MXV «Plácido Domingo»	4.6 years
Total	78	45	Average age of fleet (January 2023): 9.3 years

Orders

On March 7, 2011, Iberia placed an order for 8 A330-300 aircraft (with options for another 8) in order to start renewing its long-haul fleet. The first of these was expected to be delivered on January 17, 2013, but delivery was pushed back to early February. On April 30, 2013, a new A330, named Panama, was added to the planned order. This aircraft order is the first since Iberia became part of the IAG parent company.

With a view to the future restructuring of the Spanish company, IAG had negotiated with Airbus 32 A350-900 options plus another 12 Boeing 787-9 options. On 1 August 2014, IAG confirmed 16 A350-900 options and 8 A330-200 options for Iberia, with an eye on the company's slightly improving economy. The first aircraft are expected to be received between 2015 and 2018. According to certain information, IAG is restructuring the destination of the new aircraft that will join the group's fleets, in such a way that four A350-900s, coming from an order from Aer Lingus, would go to Iberia, since the A330-900, acquired by the Irish company, are better suited to its market.

Historical fleet

De Havilland D.H.89 Dragon Rapide, restored for the Infante Foundation of Orleans, in the colors of Iberia in the 1930s.

Douglas DC-4 Iberia Skymaster at London-Heathrow Airport in 1954.

Accidents and incidents

Iberia's worst accident was Flight 610 on February 19, 1985. A Boeing 727 nicknamed "Alhambra de Granada", traveling from Madrid to Bilbao, collided with a television antenna installed in the Mount Oiz during landing maneuvers. All 148 occupants on board died.

One of the best-known accidents is that of Iberia flight 6463 from Madrid, Spain to Quito, Ecuador, carrying 333 passengers and crew on board. It skidded off the runway at the Quito Airport after a bad landing. There were no serious injuries, the aircraft in question could not be repaired due to the heavy damage suffered, and some time later the aircraft was decommissioned.

Presidents

• Horacio Echevarrieta (1927-1929).
• Daniel de Araoz (1937-1940).
• Jesus Rubio Paz (1940-1955).
• Tomás Delgado Pérez de Alba (1955-1962).
• Julián Rubio (1962-1965).
• Emilio de Navascués (1965-1970).
• Jesus Romeo Gorría (1970-1976).
• Manuel Prado and Colón de Carvajal (1976-1978).
• Enrique de Guzmán (1978-1980).
• Felipe Cons Gorostola (1980-1983).
• Carlos Espinosa de los Monteros and Bernaldo de Quirós (1983-1985).
• Narcis Andreu (1985-1990).
• Miguel Aguiló (1990-1993).
• Javier Salas (1993-1995).
• Juan Saéz Elected (1995-1996).
• Xabier de Irala (1996-2003)
• Fernando Conte (2003-2009).
• Antonio Vázquez Romero (2009-2013).
• Luis Gallego (2014-2020).
• Javier Sánchez-Prieto (2020-current).