Spanish airline Iberia have reached agreement with cabin crews

Iberia has reached an initial agreement with its cabin crew over measures to improve productivity, a key step to ensuring its viability.

Iberia, who is part of International Airlines Group, has been losing business to low-cost rivals and has been negotiating new conditions with its unions since the end of last year. It signed a deal with its pilots on February 13 and is in talks with ground crew.

The company, with a history of cabin crew strikes over wages and staff numbers, said the measures include linking salary rises to group profitability from 2015, similar to an accord reached with pilots earlier this month.

“(The preliminary agreement) is a fundamental step to building the new Iberia, reducing its cost structure and establishing the cornerstones for profitable development,” Iberia chairman Luis Gallego said in a statement.

In November, IAG raised its 2015 operating profit goal to €1.8 billion from €1.6 billion, citing savings from integrating budget carrier Vueling, improved margins at British Airways and a recovery at Iberia.