The Anglo-Spanish International Airlines Group (IAG) is poised to establish a low-cost, low-fare subsidiary—Iberia Express—which is slated to begin operating short-haul routes in mid-2012 with 13 Airbus A320s. IAG is focused on restoring profitability on Spain's domestic route system, a highly competitive market. It proposes to do so by lowering direct operating costs. The day Madrid unveiled the initiative, which has already been approved by IAG's board of directors, EasyJet ...

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