International Airlines Group approves launch of Iberia Express

International Airlines Group's board approved (06-Oct-2011) the launch of Iberia's new subsidiary airline - Iberia Express - which will operate part of Iberia's short- and medium-haul network. The subsidiary is being established to compete effectively in the Spanish domestic and European market. Over time it will develop new markets and destinations and strengthen the Madrid Barajas hub. Iberia Express will commence operations in summer 2012 (Mar-2012) offering business and economy seats at competitive fares from Madrid. In addition to direct traffic, it will also provide transfer feed onto Iberia's long-haul network. The subsidiary will have a single A320 fleet with four aircraft initially, increasing to 13 aircraft by the end of 2012, supported by a workforce of around 500. All the aircraft will be sourced from Iberia's existing fleet. Iberia Express will have lower operating costs than Iberia's loss-making short- and medium-haul business. The subsidiary will recruit new staff at market rates. It will have improved aircraft utilisation. Maintenance and ground handling will initially be provided by Iberia. The creation of Iberia Express will not change the terms and conditions of existing Iberia employees and it will not modify the existing relationships with Vueling and Air Nostrum. [more - original PR]