 Daily news from the Canaries and the islands' biggest English language newspaper on-line  |  |  |     |
 Daily news from the Canaries and the islands' biggest English language newspaper on-line Iberia New airline The Spanish airline which for many years has been known as having the highest paid staff, Iberia, has put into action a strong cost cutting plan.  Iberia also plans a new airline for short and medium flights to enhance their current long haul offer. The new company is expected to be in operation by 2011. On the other hand, long haul flights will be increased and promoted more aggressively with special attention to businesses, ethnic groups and tour operators, with urgent measures being taken to improve the service. Iberia pull-out fears The recent news, reported above, that Spain’s biggest airline Iberia is to create a separate company to cover short and medium-haul routes to allow it to concentrate on its Latin America business has triggered fears that it may withdraw flights to the Canaries. Airline sources say the growing competition from Spanair, Air Europa and low-cost carriers, including Ryanair, which is now operating to the Canaries from the mainland, could force Iberia to pull out at least partially and downsize its domestic operations via the new airline. The fall in profits (18 per cent in the first quarter of 2009) has prompted Iberia to implement extensive cost-cutting measures and it is now expected to concentrate on the lucrative business sector to increase the return on flights. This article appears in the print edition 603 of Island Connections
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