no frills
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Spain's largest airline, Iberia, has announced plans to launch a no-frills offshoot within two years, The Independent reports.
The as yet unnamed budget entity will take on the likes of Ryanair and easyJet, presenting British travellers with yet another option to reach Spain for little cost.
Iberia recently announced it would pull 17 per cent of its domestic routes in response to stiff competition from budget airlines and is now keen to take on low-cost rivals at their own game.
The airline is seeking backing from two of Spain's largest savings banks.
Keen to avoid the past mistakes of rivals, Iberia says it won't take on full financial responsibility for the budget arm, taking only a minority stake.
Iberia currently flies to seven UK airports, although the airline hasn't yet secured any slots for its new venture.
Rivals moved quickly to pour cold water on Iberia's plans. No-frills airline easyJet argued that the European no-frills sector is already saturated and would not be an easy target for a large long-haul airline to enter.
"[Iberia] have come into this game five years too late. All national airlines who have tried this have been caught up in domestic problems," said easyJet's Toby Nicol.
Europe now plays host to some 50 airlines following a period of rapid proliferation. Recent entries to the low-cost sector include Eastern European outfit Wizz Air and German firms Air Berlin and Germanwings.
The as yet unnamed budget entity will take on the likes of Ryanair and easyJet, presenting British travellers with yet another option to reach Spain for little cost.
Iberia recently announced it would pull 17 per cent of its domestic routes in response to stiff competition from budget airlines and is now keen to take on low-cost rivals at their own game.
The airline is seeking backing from two of Spain's largest savings banks.
Keen to avoid the past mistakes of rivals, Iberia says it won't take on full financial responsibility for the budget arm, taking only a minority stake.
Iberia currently flies to seven UK airports, although the airline hasn't yet secured any slots for its new venture.
Rivals moved quickly to pour cold water on Iberia's plans. No-frills airline easyJet argued that the European no-frills sector is already saturated and would not be an easy target for a large long-haul airline to enter.
"[Iberia] have come into this game five years too late. All national airlines who have tried this have been caught up in domestic problems," said easyJet's Toby Nicol.
Europe now plays host to some 50 airlines following a period of rapid proliferation. Recent entries to the low-cost sector include Eastern European outfit Wizz Air and German firms Air Berlin and Germanwings.