The Board of Directors of the Spanish airline Iberia, which will meet tomorrow 4 October, could approve the launch of a new subsidiary to operate low-cost short and medium-haul flights. This was stated by the El País newspaper, adding that the new low-cost airline would use 37 of the 69 A-320 aircraft in the Iberia fleet. An official source from the airline confirmed that the Board will meet tomorrow but did not comment or deny the news.
Iberia had already announced at the end of 2009 that it wanted to start a cheaper sector. There was even talk of the name, Iberia Express, but without realizing any agreement. In the last six months, part of this short and medium-haul route has been operated by the subsidiary Vueling, of which Iberia holds 45,85%. However, the agreement must not have fully met the expectations of the Spanish giant since Vueling had to return 5 of the 6 planes it borrowed to operate those flights.
Last week, Iberia and IAG president Antonio Vázquez said the company was still seeking an agreement with the pilots' union, but had reached an understanding with crew members. Iberia (44%) is part, together with British Airways (56%), of the holding company Internation Airlines Group (IAG). President Vázquez could ratify the decision on Thursday.
Source: El País
