History of Iberia Airlines

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History of Iberia Airlines

Iberia destinations

Iberia Líneas Aéreas de España, S.A. (Iberia Airlines of Spain in English), usually shortened to Iberia, is the largest airline of Spain, based in Madrid.

Contents 1 History 1.1 Preamble (1921-1926) 1.2 Early years (1927-1944) 1.3 Nationalisation (1944-2001) 1.4 Privatization (2001-) 2 Incidents and accidents 2.1 Accidents 2.2 Incidents 3 References

[edit] History

[edit] Preamble (1921-1926)

The years following World War I saw a large advancement in aircraft technology with concomitant increase in possibilities for rapid connections between international business concerns. Germany had many business concerns, particularly in Africa and South America, but was still reliant on ships and land routes to reach these. In order to circumvent the Treaty of Versailles stipulation that prohibited German aircraft access to flying over France, agents in Spain explored the possibility an air liaison between Germany and Spain. As such Deutsche Luft Hansa on behalf of German government, established a general agreement with the Spanish government which was signed on December 9, 1927 authorizing an air service between both countries.

[edit] Early years (1927-1944)

Iberia, Compañía Aérea de Transportes was incorporated on June 28, 1927 with an initial capital investment by the financier Horacio Echeberrieta and Deutsche Luft Hansa of 1.1 million pesetas. The company obtained Government authorization to establish commercial daily (except Sunday) connections between Madrid and Barcelona. A fleet of three Rohrbach Roland monoplanes were bought in from Deutsche Luft Hansa.

Flight operations started on 14 December 1927 with inaugural flights aimed to coincide at a commemorative show in Madrid. The opening ceremony at Carabanchel aerodrome was attended by Alfonso XIII and the president of Iberia, Horacio Echeberrieta. The maiden flight from Madrid left on schedule, taking off from Madrid at 12:30 and arriving in Barcelona 3½ hours later. However the Barcelona to Madrid flight was briefly forced to stop in Almazán, Soria due to reduced visibility caused by snow. Although this flight had set off at 9:00, aiming to arrive in Madrid at midday, the delay meant it arrived in Madrid two hours after the dignitaries had already left.

Within a year, the company was sponsored by the government to provide postal transport between Madrid and Barcelona. Meanwhile, Deutsche Luft Hansa was favourably rewarded for the 24% investment in the Iberia company when it was granted the regular service between Germany and Spain. On January 5, 1928 the route Barcelona - Marseilles - Geneva - Zürich - Stuttgart - Leipzig/Halle - Erfurt - Berlin was initiated. In July 1928, a twin-engined Dornier Wal was added to the fleet. This seaplane was used on a pioneering route between Cádiz and the Canary Islands. This was used to test the viability of a postal route to South America, by extending the route via Cape Verde Islands.

During the dictatorship of Miguel Primo de Rivera, it was proposed that the aviation companies in Spain were to be combined and become state-controlled as a general interest public utility. This came into effect in early 1928. As a consequence, Iberia was merged into Compañía de Líneas Aéreas Subvencionadas S.A. (C.L.A.S.S.A.) and ceased activities on May 29, 1929. The name "Iberia" continued to be registered by Director-General Daniel de Araoz y Aréjula.

In May 1935, the LAPE (Líneas Aéreas Postales Españolas) company, the predecessor of Iberia, was established. However, due to the Spanish Civil War the airline was absorbed into the military on November 4, 1936. As the name "Iberia" was still registered, it was used when operations began in nationalist-held territory towards the end of Spanish Civil War. When the company was fully reinitiated following civil war it became a purely domestic airline. It won the right to many of the international routes acquiring such lucrative routes as the international service between Madrid and Lisbon which had been previously established in early 1927 by Unión Aérea Española (U.A.E.).

The company still had close ties with Lufthansa, which during World War II caused considerable difficulties to maintain the fleet as the import of fuel and spare parts was infrequent. In addition the Allies refused cooperation with the company until connections with Nazi Germany were severed.

[edit] Nationalisation (1944-2001)

The airline was nationalised on 30 September 1944, becoming part of INI. In 1946, using a Douglas DC-4 on the Madrid to Montevideo and Buenos Aires routes, it became the first airline to fly between Europe and South America after WWII. The lucrative market to South America was helped by the families separated by the Civil War. However, there was intense competition from Air France, KLM and British South American Airways. Since the company was struggling to meet domestic demand, the Government allowed another company, Aviaco, to operate the domestic routes that Iberia did not use from February 18, 1948.

By the Pact of Madrid in 1953, visa requirements were eliminated for US visitors to Spain. This stimulated the commencement of transatlantic flights between Spain and United States the following year. In addition, the amendments made in Montreal to the Convention on International Civil Aviation on June 14, 1954 was very liberal to Spain, allowing impetus for mass tourism using charter planes.

By the mid 1960s, Iberia had accumulated a fleet of Douglas DC-8s and Boeing 707s. The busiest route was Madrid to Buenos Aires. By 1965, a joint board of Iberia and Aviaco was set-up to coordinate policies, such that services did not conflict. In early 1970s, the company bought Douglas DC-9s and Boeing 747s as it expanded routes to Central America, Warsaw, Athens and Istanbul.

In 1974, it launched Europe's first walk-on shuttle service, linking Madrid and Barcelona. That same year it established the Serviberia telephone information service, the precursor of today's popular call centres, as well as the 'Red Jackets', uniformed ground staff with the mission of providing special service to customers and to resolve any problems that might arise.

By the time of the 50th anniversary in 1977, the airline carried over 10 million passengers in a year for the first time. There was fierce internal and political debates over the use of Douglas DC-9s or Boeing 727s; with the result that Iberia bought Boeing 727s thereby boosting Boeing's flagging production line. However this financial commitment and subsequent failure to anticipate predicted passenger numbers, caused heavy losses for the company during the 1980s. This was especially disappointing in 1982, which coincided with the visit of Pope and the football World Cup. By 1987, routes to Tel Aviv, Khartoum, Moscow and Tokyo were added to the service portfolio.

In the late 1980s/early 1990s Iberia planned a major fleet renewal with the McDonnell Douglas MD-87, Airbus A320 and Airbus A340, ordered to replace the Douglas DC-9, Boeing 727 and Douglas DC-10 respectively. Significant numbers of the Boeing 757 were also bought.

At this time Iberia also began to build up significant interests in other Spanish airlines - Aviaco, Viva Air, Binter Canarias and Binter Mediterraneo and Latin American airlines - Aerolíneas Argentinas, Viasa and Ladeco. In June 1990, the company lead a consortium to buy Aerolíneas Argentinas for an agreed $2billion for 85% stake and the following year bought 45% stake in Viasa for $145million.

In 1991, Iberia set up Europe's first international airline frequent-flyer programme, Iberia Plus, and, in 1996, the airline launched the www.iberia.com website. The company ordered 76 aircraft from Airbus in February 1998, which was largest single consignment of Airbus ordered, and bought Aviaco in 1999 and inherited its fleet.

By this stage, privatization calls from European Union and Spanish Government were being implemented. In December 1999, the company became semi-privatized with shares distributed 40% shareholders, 9% British Airways for €245million and 1% American Airlines. An initial public offering on October 2000 failed to go ahead, due to internal business difficulties, most notably the failure to offload stock in Aerolíneas Argentinas.

[edit] Privatization (2001-)

The year 2001 was a watershed year for Iberia, when privatization was completed and Iberia shares were listed on stock exchanges. On April 3, 2001, Iberia was privatized and included in the IBEX-35 stock index of the Madrid stock exchange. The core shareholders are: Caja Madrid – 10%, British Airways and American Airlines Holdings – 9.68%, BBVA – 7%, Logista – 6.49%, El Corte Inglés – 2.90%.^{[citation needed]} Thus Spain's flag carrier, which was a public sector enterprise for most of its history, regained its earlier status as a private company. Iberia is an international transportation group, operating in about 100 airports in 40 countries, employing more than 26,000 people.

In 2002, Iberia celebrated its 75^th anniversary making it one of the oldest airlines in the world. During those 75 years nearly 500 million people have been flown by Iberia, placing the company among the five largest European airlines, and important for routes connecting Spain with Europe and Latin America.

The Iberia Group encompasses the Iberia Regional/Air Nostrum franchise. In addition to transporting passengers and freight, Iberia carries out many related activities, such as aircraft maintenance, handling in airports, IT systems, in-flight catering, and holiday packages.

Iberia Group airlines fly to 97 destinations in 40 countries. Via code-sharing arrangements with other companies, it offers flights to another 60 destinations in 25 countries. With a fleet of almost 200 aircraft, it makes about 1,000 flights each day. In 2002, Iberia carried 28 million passengers and 210,000 tons of freight.

In addition, Iberia is a qualified aircraft maintenance company, servicing its own fleet and those of another 48 companies, including some leading European airlines. Iberia is the leading supplier of aircraft handling services at all Spanish airports, its airline clients number more than 200.

Iberia was a founding partner in the computerized air ticket reservation system, Amadeus, with a 18.28% stake - this was sold in 2005. Iberia is also active as a tour operator through its Viva Tours and Tiempo Libre units, and with Cacesa it supplies express parcel shipment services.

Iberia is allied with American Airlines and British Airways, and on 1 September 1999, joined the Oneworld alliance. British Airways owns 9% of its share capital.

In July 2004, Iberia announced it had decided to move its Latin American hub from Miami, Florida to San Pedro Sula, Honduras. Although rumored plans that the airline was considering to set the hub at Luis Muñoz Marín International Airport were discarded with the announcement, Iberia announced that it plans to expand its Puerto Rican schedules to connect San Juan with Central American cities.

In 2005, Iberia introduced its new Business Plus Class, on its Airbus A340 aircraft.

On February 5, 2006 the new Terminal 4 at Madrid Barajas was awarded to Iberia and the Oneworld alliance members. This provided much-needed expansion capabilities for Iberia. Iberia alone is responsible for around 60% of Madrid Barajas traffic. In 2005 Iberia and its regional branch Air Nostrum transported 21,619,041 passengers to/from Madrid Barajas alone.

Iberia plans to set-up a low-cost carrier called Clickair in November 2006. This will be based in Barcelona and has been scheduled initially to 10 destinations (2 in Spain and 8 in Europe).

[edit] Incidents and accidents

[edit] Accidents

During 1939 it lost two trimotor Junkers Ju 52s. On March 16 one crashed due to bad weather in Cabezavellosa on the regular flight from Salamanca to Seville. On December 18 another was mistakenly shot down by British anti-aircraft fire as it passed over Gibraltar on its flight from Tetuán to Seville, when it was mistaken for a German airplane. Three crew and seven passengers were killed.

On February 2, 1944 a Douglas DC-2 crashed on approach to El Prat airport due to engine failure caused by icing-up in the carburetor. Six passengers and a crew member, of sixteen occupants, were killed. On December 23, 1948 a Douglas DC-3, crashed in bad weather near Gandesa killing all 27 occupants. On October 28, 1957, an engine fire caused a Douglas C-47 to crash near Getafe killing all 21 occupants^[1]. On April 29, 1959 a Douglas DC-3 crashed onto Sierra de Valdemeca, Cuenca after being diverted due to bad weather with the loss of all 28 occupants^[2].

On March 31, 1965 a Convair 440, crashed into the sea on approach to Tangier killing 50 of 53 occupants. Initially the crash was blamed on sabotage but later revised to an engine stall ^[3]. On January 7, 1972 a Caravelle 6-R, crashed into Mont San Jose on approach to Ibiza Airport killing all 104 on board ^[4]. Sixty-eight people were killed when an Iberia Douglas DC-9, flying from Palma to London, collided in midair with a chartered Coronado 990 aircraft 8,000m above Nantes, in western France. The accident occurred during a French air traffic controllers strike ^[5].

On December 7, 1983, an Iberia Boeing 727 collided with an Aviaco Douglas DC-9 in intense fog when the two airliners taxied down the runway at Madrid Airport. All on the Aviaco flight perished and there was a total of 85 deaths, including the famous Mexican actress Fanny Cano.

On February 19, 1985, an Iberia Boeing 727 crashed after hitting a television antenna installed on the summit of Monte Oiz while landing in Bilbao, killing 148 people ^[6].

[edit] Incidents

During June 1984, a month long pilot strike caused considerable disruption to services. In May 1991, a 24-hour strike necessitated cancelling all flights.

On July 28, 2006, ground staff at the El Prat airport went on an unannounced strike and occupied the runway. ^[7] The illegal strike, which coincided with one of the busiest weekends of the summer season, was attributed to the labor conflicts stemming from Iberia having lost its contract to provide ground services to a rival company. The airport was closed for the day and caused thousands of passenger delays. Some stranded passengers had to find their baggage and it took three days to remove the backlog of delays. In September 2006, the Spanish parliament agreed to certain compensatory payments to travellers who were affected. ^[8]

[edit] References