The past few years have not been kind to Air Nostrum. The regional airline, which has been operating under a franchise contract with Iberia since 1997, is struggling with the fallout of Spain’s relentless economic downturn and an onslaught of low-cost carriers in the country. Iberia’s downsizing and social unrest is making matters worse. Air Nostrum’s challenging situation is indicative of the Spanish air transport market, which has seen the bankruptcy of Spanair and Air Madrid, but also ...

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