Iberia Express launches as Europe’s latest salvo to bring short-haul model to profitability

New carrier Iberia Express has launched services despite its website not launching until later this week, and even then bookings will be accepted for travel only as early as 10-Apr-2012. The unusual arrangement is indicative of what Iberia Express is: a wholly-owned subsidiary of Iberia that will replace some of mainline Iberia's short- and medium-haul routes. In its initial weeks it is taking over flights sold as Iberia, but passenger perceptions will be few; service is almost identical to Iberia - but with staff employed at market rates, drastically cutting costs.

Iberia for some years now has been in dispute with its over-paid staff - some of its short-haul pilots earn more than British Airways' long-haul pilots - a problem that has compounded Iberia's short-haul network which faces intense competition from low-cost carriers amidst rising fuel prices. The struggle of a European legacy carrier's traditional short-haul network is not unique to Iberia and across the continent many alternative models are being explored, with none yet to emerge as successful and resistant to challenges.