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IAG's LEVEL starts four Barcelona routes to Americas; eyes Paris & Rome bases, Asia destinations

Analysis

IAG's new long haul low cost airline LEVEL took to the air on 1-Jun-2017 with a Los Angeles service. This was followed by Oakland, Punta Cana and, on 17-Jun-2017, Buenos Aires. Launched in response to Norwegian's plans to start intercontinental routes from Barcelona, Level just pipped its rival to the post to become Spain's first long haul low cost airline service.

At the launch of LEVEL's first flight, IAG said that its new brand's sales were "well ahead of our expectations in all markets". According to IAG, LEVEL is expanding the market by attracting passengers that are flying long haul for the first time. Looking ahead, IAG plans to take LEVEL into other European cities, with Rome and Paris the favourites for its next base. It is also considering adding destinations in Asia.

Beyond the more analytical considerations of network design and competitor response, there is another less tangible factor that will be vital to LEVEL's long term success. This relates to the new airline's corporate culture. Initially operated and staffed by Iberia, the transition to Level's planned status as a fully autonomous airline within IAG will be crucial.

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