Iberia considers low cost operation
12.09.05
Spanish national airline Iberia plans to cut its flights by 5% over the next 3 years, and will either launch, take over or buy a stake in a budget airline, according to Spanish financial newspaper Cinco Dias.
Iberia is due to present its 2006 to 2008 strategic plan this month, but Cinco Dias said it had already discussed it with unions. The union sources said most of the cuts would affect Barcelona Airport, where the airline faces stiff competition from low cost carriers. The airline plans to cut all international routes from Spain's second city except those to Paris, London and Frankfurt.
The paper quoted the union sources saying Iberia would 'create, buy, or take a stake in' a low-cost airline in the coming months. Cinco Dias said sources at the company had confirmed what the union sources had said.
In July an Iberia spokesman said the company was considering the option of a no-frills airline and would talk about the issue when it launched its strategic plan. Investors have long expected Iberia to launch a budget rival to Britain's easyJet and Ireland's Ryanair, which have gnawed into the former monopoly's market share.
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