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Spain’s Iberia to start new budget airline

6 October 2011

The board of Spanish airline Iberia is planning to establish a low cost airline to help improve the carrier’s profitability, however their plans could lead to industrial action.

Iberia who is owned by International Airlines Group (IAG) has plans to establish a budget carrier to take on short and medium-haul flights, the Financial Report reported.

The carrier’s performance is also being threatened by intense competition from Europe’s leading low cost airlines Ryanair and EasyJet.


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