My Account Menu

CAPA Login

Register to trial CAPA Membership!

Iberia to create new short/medium-haul airline – report


Iberia is planning to establish a new airline to operate its short- and medium-haul services, as part of cost cutting plans, according to a report in the Financial Times.

Iberia joins Air France-KLM, Austrian Airlines, British Airways, Japan Airlines and many other legacy carriers that are considering radical overhauls of their short- and medium-haul operations in response to structural changes in the market, particularly for premium seats.

According to the report, Iberia plans to focus on more lucrative long-haul routes, mainly to Latin America, where it this week reached a comprehensive codeshare agreement with Brazilian LCC, GOL. Iberia plans to implement the changes by 2011. The airline’s shares eased 1.9% yesterday.

Elsewhere, British Airways’ shares slumped 4.1% and Air France-KLM fell 3.1%. Lufthansa eased 1.5% as JetBlue revealed a net profit of USD15 million for the third quarter, slightly below market expectations. Lufthansa currently holds a 19% stake in JetBlue.

Europe selected airlines daily share price movements (% change): 22-Oct-09

Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.