Iberia confirms low-cost carriers force route cuts
27 January 2005, MADRID- Spanish carrier Iberia has confirmed it plans to close some routes, two days after media reports said tough competition from low-cost carriers would price it out of some European and domestic routes.
27 January 2005
MADRID- Spanish carrier Iberia has confirmed it plans to close some routes, two days after media reports said tough competition from low-cost carriers would price it out of some European and domestic routes.
The measure "will be taken gradually across the year," communications director Luis Diaz Guell said on the sidelines of the Spanish tourism forum Fitur, without elaborating.
Spanish newspaper El Pais reported on Monday that Iberia is increasingly unable to keep pace with its low-cost competitors, such as Ryanair and Easyjet, who receive an estimated EUR 10-17 (USD 12-20)subsidy per ticket from local authorities on some routes.
The Spanish carrier has lost its former monopoly at certain provincial airports such as Almeria in the southeast and Jerez in the deep south, and El Pais reported that the price war would ultimately force Iberia to drop some destinations from its network.
Ireland's Ryanair is in April to propose flights between London and Santiago de Compostela for fares ranging from EUR 27-69, not including taxes.
El Pais reported Iberia's normal fare for the route was EUR 130 more expensive and reported that EasyJet has captured a 33 percent Spanish market share for flights between Britain and Spain.
[Copyright EFE with Expatica]
Subject: Spanish news