Spanish carrier Iberia which is part of the International Airlines group (IAG) has decided to start a new subsidiary named Iberia Express, the airline intends to service its short and medium haul destinations specially the Spanish domestic and European markets from Madrid offering Economy and Business Class seating at “Competitive” fares.
The carrier which intends to use the subsidiary to feed traffic to its long haul operations has said that initially Iberia Express would start operations by utilizing existing Iberia aircraft, starting with four A320s going to 13 aircraft by the end of next year.
The airline says its doing this to counter the competition from Low Cost Carriers(LCC) like Easyjet and Ryanair which have over the recent years strengthened their service offering to the Spanish airports of Madrid and Barcelona.
In my opinion it doesn’t seem to be a very well thought move given that Iberia already has tie-ups with Vueling and Air Nostrum and it holds a 45% stake in Vueling, so why have another brand? Beats the logic out of me. Full service airlines trying to compete with Low Cost Carriers is definitely not going to work given that both operate on separate models, I guess Iberia should just stick to its current operations and work more on increasing its efficiency and building synergies with its partner British Airways to provide seamless experience to customers. In the long run that’s what is going to really help them.