It's easy to see why a partnership between the Spanish Chamber of Commerce and Iberia is so important. So why wait so long to launch this initiative?
Alvaro Delgado : In fact, the Chamber of Commerce has been in existence for 120 years, and Iberia has been present in France for around 65 years... But for many years, we were the only or almost the only operators linking France and Spain. So we didn't necessarily need to set up such an agreement, or develop this type of fare discount. In recent years, all the airline networks have expanded towards Madrid, and everyone is linking Paris to Barajas with equivalent flight times and aircraft types. So we felt it was the right time to offer added value. We had already set up agreements with major accounts, but the Chamber of Commerce brings together more than 300 companies of all sizes, all of which have a targeted interest in Spain. We wouldn't have been able to reach specific agreements with so many small companies. So this is the right time to facilitate access to Spain, given the economic situation in Europe and the highly competitive environment.
What other initiatives is Iberia taking to attract business customers?
A.D.: Since February, we have been transforming our entire long-haul fleet, with an investment of 2 billion euros over three years, focusing in particular on business class seats, and more generally on the entire interior of the aircraft: entertainment system, gastronomic offer, and soon wi-fi on board in the next few weeks. We are in the process of removing our smallest aircraft from the long-haul fleet, which are not efficient enough in terms of fuel consumption, and we expect eight new A330s by the end of the year. With the introduction of the new long-haul Business Plus and Economy classes, the transformation is incredible.
How is Iberia doing in Paris and on the French market?
A. D. : In 2012 we improved our market share in France compared with 2011 +7% growth, particularly on departures from the provinces. Competition is very tough from Paris, while we are all fighting with the same weapons elsewhere at the other French airports. We sometimes have a market share of 80% at certain provincial hubs. In fact, 55% of Iberia's turnover in France comes from the provinces, compared with 45% from Paris.
Iberia has been through a difficult period, with repeated industrial action. Have you emerged from this turbulent period?
A. D. : Fortunately, these strikes are now behind us. Business is picking up again, and we hope to recover what we may have lost during these three disrupted months. All airlines have to change. The economic crisis, the arrival of low-cost airlines and the TGV, which serves many domestic and European destinations, are all factors that are forcing us to transform. We haven't just adjusted our workforce: we're improving our product. Our vocation is to increase our turnover, which is why we have invested so much in improving our offer.
What about the Latin American market, where positions could change with the merger creating LATAM?
A. D. : We'll have to wait and see what happens. For us, it is strategic to reach an agreement with LATAM. We already have a partnership with LAN Chile: we share revenues on certain Latin American destinations. Our strategy is to maintain this agreement. We will see what this new group decides internally for the future. We hope to reach an equivalent type of agreement in Brazil.
How do you see 2013?
A. D. : Our sales in France are likely to fall back slightly, as we have withdrawn some seaside destinations, such as Havana and Santo Domingo. But if we exclude these destinations, sales will remain broadly unchanged this year.
