Spain's biggest airline Iberia resumed flights yesterday just hours after grounding its entire fleet as part of an escalating pay dispute with pilots at the height of the tourist season. The government said it had started the process of imposing a mediator in a bid to end the strikes and disruption that threaten to send holidaymakers looking for alternative destinations. Iberia ended a suspension of all services shortly after the government challenged the airline's claim that it was unable to guarantee safety following a wave of resignations by pilots, and called on the airline to resume flights immediately.

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