Iberia Mulls Buying Low-Cost Airline
April 20, 2005
Iberia is considering buying or setting up a low cost airline of its own so that it can compete in this market "with the same weapons", Spanish media reported on Wednesday.
News agency Europa Press quoted Managing Director Angel Mullor as saying Iberia was weighing up alternatives, such as buying an existing company or setting up its own.
"Either we fight with the same weapons as these airlines or we will have to stay out of these markets," Mullor said, according to the Europa Press report.
An Iberia spokeswoman said Mullor's remarks were accurately reported.
More than 50 million foreign tourists visit Spain every year and a steadily increasing proportion come on budget airlines such as Ryanair, easyJet or Lufthansa's Germanwings unit.
Iberia has been a fierce critic of subsidies received by budget airlines flying to smaller airports.
"What Iberia has to do is cut costs, either internally, or, if that fails, by any other means possible," the spokeswoman said.
(Reuters)