(Reuters) – The pilots union of struggling Spanish airline Iberia demanded a growth plan as it headed into talks on Wednesday with executives over deep job cuts that have also stoked alarm in a country with the highest unemployment in the European Union.

Iberia, part of the International Airlines Group (IAG) along with British Airways, plans to axe about 4,500 jobs – a quarter of the Spanish carrier’s workforce – and cut salaries to become more competitive.

Loss-making Iberia says the cuts are needed to guarantee its survival amid low-cost competition and Spain’s deep economic recession, both of which have weighed on the airline and made it a drag on its more profitable partner, British Airways.

To back the restructuring plan, unions want proof that there is a growth strategy for the airline beyond the cost cuts.

“We’re not very optimistic going into the talks because there still isn’t anything on the table showing how this plan saves Iberia, showing how Iberia will grow in the future,” a union source who asked not to be named said.

No agreement was expected on Wednesday but the talks, to begin at 5 p.m. (1600 GMT), were to set the tone for a deal before the January 31 deadline that Iberia has set for the unions to support the plan.

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Source: http://www.reuters.com

French carrier Air France unveiled plans to cut more than 5,000 jobs by the end of next year as part of an effort to slash costs and debt to return to growth in the face of tough market conditions in Europe and political pressure at home.

The job cuts come as the world’s airline industry grapples with the need to consolidate because of limited growth prospects, rising costs and the effects of the euro zone debt crisis.

Air France, under the watchful eye of France’s new Socialist government, pledged to try to avoid forced layoffs by encouraging early retirement, voluntary departures, part-time working and work-sharing.

But the carrier warned forced redundancies would be “unavoidable” if unions refused to support management’s plans.

“Air France is facing a fundamental choice about its future,” Air France Chief Executive Alexandre de Juniac said in a statement on Thursday, when he was meeting with the airline’s works council. “If we all make the necessary equitably distributed efforts, there will be no forced departures.”

Air France-KLM and Europe’s other leading legacy carriers have been confronting losses in their short-haul operations as Europe’s economy has taken a battering, leading to a wave of painful contract negotiations.

The Franco-Dutch group unveiled a three-year plan in January, fleshed out last month, to reduce debt and operating costs by 2 billion euros ($2.54 billion) in an effort to return to break-even in 2014.

It has said its labor contracts stand in the way of heading off growing competition from low-cost carriers including Britain’s easyJetand a historic fuel bill which is set to rise by 1 billion euros in 2012.

Global airline leaders meeting in Beijing earlier this month stuck to their overall profit forecast for 2012, but the industry is braced for Europe’s debt crisis to worsen and wipe out the benefit of recently cheaper oil.

The International Air Transport Association (IATA) only expects growth in North and South America this year, and there are concerns that cargo traffic might take a hit from the European crisis spilling over.

German rival Lufthansa announced last month that it was slashing 3,500 administrative jobs around the world as it tries to offset soaring fuel costs and fierce competition in Europe to return to profitability.

FRANCE BRACES

Shares in Air France-KLM, previously down 13 percent this year after plunging 71 percent last year, were 7.3 percent higher at 3.69 euros by 0714 EDT, the top gainers on the broad French SBF120 index.

The Air France job cuts also come as France’s new President Francois Hollande has pledged to clamp down on layoffs with plans to ramp up the cost for companies of shedding staff. At 10 percent, the French jobless rate has hit the highest level this century.

Read more: http://www.foxbusiness.com/industries/2012/06/21/air-france-to-cut-more-than-5000-jobs/#ixzz1yRBBJazI

Brazil’s airline industry is certainly not for the faint-hearted. With cut-throat competition, hefty airport fees, rising fuel costs and slipping seat occupancy, some of the country’s airlines have nosedived into the red over the past year.

After announcing a round of job cuts and trimming its routes, Gol is now betting on a new chief executive to turn the company around, it seems.

Late on Monday the country’s second-biggest airline announced that Paulo Kakinoff, the head of Audi in Brazil, will replace Constantino de Oliveira Jr. at the beginning of July as chief executive. Constantino will become the airline’s chairman, Gol said.

Source:FT

Air New Zealand’s new chief executive says he is confident the airline is well positioned for growth in spite of tough times facing the airline industry.

Forty-one year old Christopher Luxon will take over from current chief executive Rob Fyfe at the end of December.

Luxon has been at the airline for a year, as the general manager of its international airline.

This followed a career at Unilever in North America, Asia and Australia. He was recruited by that company in his final year at university.

The Christchurch-born father of two said during the last 12 months there had been a “deep review” of the the airline’s international operations. This part of the business is where to airline can make – and lose – money most quickly.

“There are real challenges there but I think we’re on a pathway to deliver on our plans there.”

Following a review of the business, he said he was confident it could improve profitability by $110 million a year by 2015.

Airlines around the world have been hit with high fuel bills for most of the past 12 months, a sharp drop in demand in Europe and a levelling out in Asia. In Australia Qantas faces a profit plunge due mainly to structural issues in the airline and problems making money on its long haul routes.

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By Grant Bradley

Source: NZHERALD

(Airlineberg, May 29-2012)  The  strike by Flight and Technical crew of national carrier Turkish Airlines, pushing up the losses to more than 7 Million USD .(It was reported 4 Million USD early today)

THY’s website was also hit by a hacker attack and was not working. Transport Minister of Turkey, Binali Yildirim said that 104 flights had been cancelled. Losses are on account flights cancellations, dropping internet sales and the fleet grounding.

Hava-Is announced that “this action is a response to the draft amendment, but was not an official strike – THY staff can strike only after a statutory process”. Hava-Is made a press statement saying, “Many of our members have become sick and do not feel ready to fly. In terms of flight safety, they are unable to perform their duties.”

Airlineberg.com

(Airlineberg-May 29, 2012)  Turkish Airlines’  cabin ,cockpit and technic personnels went on slowdown strike today to protest a draft law which bans strikes at the aviation industry

It was scheduled that The Parliament will discuss the draft late today.

Some flights were delayed and cancelled after more than 250 workers from the THY technical team supported  the fligt crews  on strike in solidarity, according to daily Hürriyet.

THY cancelled 120 flights. The strike is expected to last until midnight.  It is announced that THY will lay off more than 150 cabin crew due to strike.

Officials have asked passengers to call 444 0 849 prior to leaving for the airport to check the status of their flight.

Airlineberg.com

(Airlineberg – May24,2012) Executives of B&H Airlines’ management from Turkey have been withdrawn on behalf of the carrier’s 49% stake share holder Turkish Airlines. One of the terms set out by the Turks, after it purchased shares in B&H, was for its own management to take over. As the spat between the government and its Turkish partner has worsened over the past few months, the “Dnevni Avaz” daily is tipping that Turkish will sell off its shares in the carrier soon and is looking for an exit strategy. Earlier in the year Turkish Airlines Executive Committee Chairman stated, “Bosnia does not care for B&H Airlines. This was a big disappointment for us. The main reason for the current state of the airline is a complete lack of interest and understanding”.

Some of the casualties of Turkish’s management withdrawal include CEO Altan Buyukyilmaz, as well as the Managing Director for Marketing and the Executive Finance Director. The government is expected to name a new CEO in the coming months, with rumours circulating that former Sarajevo Airport Managing Director, Bakir Karahasanović, who led the airport for seventeen years, is the front runner to take the job.

Balkans.com

(Airlineberg- May 23, 2012) American Eagle will cut around 100 management and office jobs to save overhead costs during the process of reorganization.

American Eagle announced it will cut management positions by 10 percent over the next several months via a letter sent to employees last Friday.  The regional airline is planning to save  7 million USD a  year.

A spokesman said Tuesday that the 10 percent equaled about 100 jobs.

American Eagle  are owned by AMR Corp., and all Eagle, AA and AMR Corp filed for bankruptcy protection in November.

Airlineberg.com

American Eagle Airlines is cutting management in a move similar to that recently undertaken by sister carrier American Airlines.

The regional carrier has targeted $7 million in annual management and support staff labor savings as part of parent company AMR Corp.’s bankruptcy restructuring. The latest cuts are an attempt to reach a goal of 10% management and support staff cuts, American Eagle CEO Dan Garton says in an internal letter to employees.

Eagle is eliminating up to 100 non-union management and support staff positions, although the exact number remains unclear. Some of the positions currently are unfilled and simply will be eliminated, and Eagle expects attrition to account for some more of the losses, but employees will be cut under this initiative.

By Madhu Unnikrishnan

Read More : http://www.aviationweek.com/Article.aspx?id=/article-xml/avd_05_22_2012_p03-02-460417.xml

The eight directors of Royal Bank of Scotland’s former Irish-based aviation leasing business shared $6.7m (€5.1m) in salaries, bonuses and pension payments last year, figures show.

Accounts just filed by RBS Aerospace show the firm’s pre-tax profits declined by 12% from $204.3m to $179.1m in the 12 months to the end of Dec 2011.

The firm recorded the drop in pre-tax profits after revenues declined by 5.7% from $654.8m to $617.4m.

Four of the directors are Irish and are listed as chief executive, Peter Barrett, solicitor Catherine Ennis, banker, Barry Flannery and bank official, David Swan.

The number of directors during the year rose from six to eight contributing to directors’ staff costs rising from $1.8m to $2.3m.

However, the figures show aggregate bonus payments were almost more than double the directors salary costs: increasing from $3.4m to $4m last year.

The numbers employed increased from 58 to 65 and staff costs — excluding payments to directors — last year totalled $20m. Staff are based across the world and the company owns, manages or has orders for 329 commercial jet aircraft and leases planes to 65 airlines based in 24 countries.

By Gordon Deegan

Monday, May 14, 2012

Read more: http://www.irishexaminer.com/business/aerospace-directors-earned-combined-total-of-51m-last-year-figures-show-193835.html#ixzz1uqonKGG1