New short and medium-haul carrier Iberia Express will take to the air in summer 2012.
The new airline will have lower operating costs than Iberia’s loss-making short and medium-haul business, partly due to the recruitment of new staff at “market rates”.
The Iberia subsidiary is being launched out of Madrid to compete on the Spanish domestic and European market.
The airline will start with a fleet of four single-aisle A320 aircraft, offering business and economy seats.
Iberia Express flights will also connect onto Iberia’s long-haul network.
By the end of 2012, the airline will have 13 aircraft, all of which will be sourced from Iberia’s existing fleet.
Iberia Express will not affect the terms and conditions of existing Iberia staff, and won’t change Iberia’s existing relationships with Vueling, which it owns 45% of, and Iberia’s franchise partner Air Nostrum.