Spanish new low-cost airline Iberia Express launched

Spain's Iberia has launched a new entry in Europe's competitive market for low-cost airlines. The new airline, Iberia Express, begins on Sunday with prices starting at 25 euros (£21) for a one-way ticket.

Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote. The launch comes after Spain's fourth-largest airline Spanair collapsed in January, stranding 20,000 passengers.

Iberia is owned by the same parent company as British Airways. The low-cost Iberia Express has 500 staff and has a fleet of four Airbus A320 aircraft, according to Iberia chief executive Luis Gallego.

"The containment of costs will allow Iberia Express to grow and compete with the low-cost operators," he said.

(BBC)