British Airways’ owner International Airlines Group (IAG) has
said its Iberia and Vueling carriers have signed financing agreements worth more
than €1 billion with the Spanish government, drawing criticism from unions
representing the 12,000 BA workers set to be made redundant in the UK.
The deal will see Iberia get €750 million and its low-cost
sister airline Vueling €260 million guaranteed by the Instituto de Credito
Oficial (ICO), the Spanish public bank. IAG said the loans are within the legal
framework set up by the Spanish government to mitigate the impact of Covid-19.
The news was criticised by the UK’s Unite union, which
represents some of the 12,000 BA employees that are at risk of losing their
jobs after the airline refused to turn to taxpayer-backed bailouts to survive
the pandemic.
National officer for aviation Oliver Richardson said: “The
fact that Iberian airlines is seeking support from the Spanish government
should be welcomed and is a common sense approach to preserving jobs and
services following the immense damage the Covid-19 pandemic has caused to the
aviation sector.
“What is concerning is that the parent company IAG is not
seeking a similar solution for British Airways. This is another gross insult to
the UK workforce that BA plans to send to the dole. We appeal to IAG to give our
members the same support as they are giving to their Spanish employees.
“Rather than seeking to preserve jobs and workers’ terms and
conditions and act for the good of the UK aviation sector, British Airways is
guilty of an act of smash and grab opportunism. This is designed to boost its
profits in the future and to try to force other operators out of the UK
aviation sector.”