Air Europa pilots set to strike over pay amid IAG takeover

A Spanish pilots union has called a strike at Air Europa to demand more pay, as the airline is in the process of being acquired by IAG SA.

The Sepla union is calling on 607 members to strike for several days in May and June given “the company’s zero interest in reaching an agreement that resolves the labor dispute,” according to a statement Wednesday. Wage talks with Air Europa collapsed after union and company representatives failed to reach an agreement after enlisting support from a mediator. 

IAG in February agreed to pay €400 million ($437 million) to take control of its smaller rival. The offer came after years of talks and the collapse of a previous acquisition agreement which fell through under scrutiny from European Union regulators. IAG had initially valued Air Europa at €1 billion in November 2019, before the Covid pandemic threw the entire global industry into upheaval.

If approved by the European Commission, the deal would allow IAG’s unit Iberia to gain slots at Madrid airport. Analysts have noted that the terms of the transaction are not as good as they were before the pandemic and that the newly-acquired company could add to IAG’s debt burden.