Should Iberia Start a Low Cost Carrier?

[hkskyline]

Iberia to launch or buy low cost airline-paper

MADRID, Sept 10 (Reuters) - Spanish airline Iberia plans to cut its flights by 5 percent over the next three years and either launch, take over or buy a stake in a budget airline, financial daily Cinco Dias reported on Saturday.

Iberia is due to present its 2006 to 2008 strategic plan this month, but Cinco Dias said it had already discussed it with unions.

The union sources said most of the cuts would affect Barcelona airport, where the airline faces stiff competition from low cost carriers, and the company plans to cut all international routes from Spain's second city except those to Paris, London and Frankfurt.

No one was available at Iberia on Saturday to comment on the report but Cinco Dias said sources at the company had confirmed what the union sources had said.

The paper quoted the union sources saying Iberia would "create, buy, or take a stake in" a low-cost airline in the coming months.

In July an Iberia spokeswoman said the company was considering the option of a no-frills airline and would talk about the issue when it launched its strategic plan.

Investors have long expected Iberia to launch a budget rival to Britain's Easyjet and Ireland's Ryan Air , which have gnawed into the former monopoly's market share.

[Jay]

No, It would be painful to travel... Iberia already has the standard comfort, service, puncuality and hostility of a low cost carrier, I can't imagine such a shitty airline going any lower...


If they can make it better then sure.


(Yes, I've had bad Iberia experiences)

[e888]

Originally Posted by Jo48

(Yes, I've had bad Iberia experiences)

Just because you've had "bad Iberia experiences" does not mean that Iberia is "a shitty airline".*

Seems like Iberia will end up buying "Vueling"...we'll see what happens.


*Do not forget that Iberia is the most punctual European airline and has world-class reputation for the technical maintenance of its aircrafts.

[samsonyuen]

I don't know if it'd work. BA's tried it, and failed. Air Canada's tried it and failed. However, United, Delta and Qantas have tried it, and seem to be doing well. I think the European market's dominated by the Ryanairs and easyJets of the world, and it's really competitive. I don't know if they can concentrate the mainline carrier on international and longhaul flights, and leave the shorthops to the LCC, without losing money.

[SGoico]

I find Iberia very similar to others airlines such as BA, Lufthansa, Air France, Klm in terms of comfort, punctuality, service and (expensive) cost. Describing Iberia as a shitty airline is a bit too much. What would the people at Heathrow said about BA when they kept waiting for 48 hours because of the catering strike in August? In spite of that, BA is still a great (expensive) airline. In spite of your punctual and very own personal bad experiences with Iberia, I still think is a great (expensive) airline.

To Iberia: please leave Vueling alone. They can do it by themselves. Why don't create a low cost airline to South America (similar to Air Madrid) and the Magreb? That would be great, more places to fly to for 4 Duros