Spain: iberia launches new low-cost airline

In some good news for property investors, Spanish airline Iberia has launched a new low-cost airline.

The new airline, Iberia Express, commenced operations with prices starting at €25 for a one-way ticket.

Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote.

The launch follows the January collapse of Spain's fourth-largest airline Spanair.

The low-cost Iberia Express has 500 staff and has a fleet of four Airbus A320 aircraft, according to Iberia Express chief executive Luis Gallego.

"The containment of costs will enable Iberia Express to grow and compete with the low-cost operators," he said.

International Airlines Group is the ultimate parent, which was formed by the merger of Iberia and British Airways in 2011.

Source: FinFacts