Iberia is setting up a new subsidiary for short- and medium-haul routes. The airline, Iberia Express, will be based in Madrid and is aimed at turning the money-losing short-haul business back to profitability. The move was approved by the board of Iberia’s parent International Airlines Group (IAG) at a meeting on Thursday. The airline will start operations in the summer of 2012 and will initially fly four Airbus A320s. The fleet will be increased to 13 units by the end of next year. The ...


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