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Spanish new low-cost airline Iberia Express launched | Spanish new low-cost airline Iberia Express launched |
(about 2 hours later) | |
Spain's Iberia has launched a new entry in Europe's competitive market for low-cost airlines. | Spain's Iberia has launched a new entry in Europe's competitive market for low-cost airlines. |
The new airline, Iberia Express, begins on Sunday with prices starting at 25 euros (£21) for a one-way ticket. | The new airline, Iberia Express, begins on Sunday with prices starting at 25 euros (£21) for a one-way ticket. |
Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote. | Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote. |
The launch comes after Spain's fourth-largest airline Spanair collapsed in January, stranding 20,000 passengers. | The launch comes after Spain's fourth-largest airline Spanair collapsed in January, stranding 20,000 passengers. |
Iberia is owned by the same parent company as British Airways. | |
The low-cost Iberia Express has 500 staff and has a fleet of four Airbus A320 aircraft, according to Iberia chief executive Luis Gallego. | |
"The containment of costs will allow Iberia Express to grow and compete with the low-cost operators," he said. | "The containment of costs will allow Iberia Express to grow and compete with the low-cost operators," he said. |
Labour dispute | Labour dispute |
The new airline's website is advertising for pilots and cabin crew. | The new airline's website is advertising for pilots and cabin crew. |
The airline will initially fly to the cities of Vigo, Santiago and Granada, as well as Menorca, Ibiza, Fuerteventura, Lanzarote and La Palma. | The airline will initially fly to the cities of Vigo, Santiago and Granada, as well as Menorca, Ibiza, Fuerteventura, Lanzarote and La Palma. |
Later, it will expand to the Republic of Ireland, Italy, Greece, Latvia and the Netherlands, Mr Gallego said. | Later, it will expand to the Republic of Ireland, Italy, Greece, Latvia and the Netherlands, Mr Gallego said. |
The airline is also the subject of a labour dispute, with the union representing Iberia's 1,600 pilots fearing it will lead to job losses. | The airline is also the subject of a labour dispute, with the union representing Iberia's 1,600 pilots fearing it will lead to job losses. |
The dispute with the union led to 12 days of work stoppages in December and January to protest the low-cost airline. | The dispute with the union led to 12 days of work stoppages in December and January to protest the low-cost airline. |
Separately, the Spanish government has said it is taking legal action over the collapse of Spanair, saying it could be fined 9m euros. | Separately, the Spanish government has said it is taking legal action over the collapse of Spanair, saying it could be fined 9m euros. |
In 2010, Spanair reported an operating loss of 115m euros. | In 2010, Spanair reported an operating loss of 115m euros. |
After Spanair's collapse, Irish rival Ryanair said it was examining opportunities in Spain. "We certainly see it as an opportunity to expand our base," it said. | After Spanair's collapse, Irish rival Ryanair said it was examining opportunities in Spain. "We certainly see it as an opportunity to expand our base," it said. |