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| − | Spain's Iberia has launched a new entry in Europe's competitive market for low-cost airlines.
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| − | The new airline, Iberia Express, begins on Sunday with prices starting at 25 euros (�21) for a one-way ticket.
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| − | Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote.
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| − | The launch comes after Spain's fourth-largest airline Spanair collapsed in January, stranding 20,000 passengers.
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| − | Iberia is owned by the same parent company that owns British Airways.
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| − | The low-cost Iberia Express has 500 staff and has a fleet of four Airbus 320 plane, according to Iberia chief executive Luis Gallego.
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| − | "The containment of costs will allow Iberia Express to grow and compete with the low-cost operators," he said.
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| − | Labour dispute
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| − | The new airline's website is advertising for pilots and cabin crew.
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| − | The airline will initially fly to the cities of Vigo, Santiago and Granada, as well as Menorca, Ibiza, Fuerteventura, Lanzarote and La Palma.
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| − | Later, it will expand to the Republic of Ireland, Italy, Greece, Latvia and the Netherlands, Mr Gallego said.
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| − | The airline is also the subject of a labour dispute, with the union representing Iberia's 1,600 pilots fearing it will lead to job losses.
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| − | Spanair's collapse cause misery for its passengers
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| − | The dispute with the union led to 12 days of work stoppages in December and January to protest the low-cost airline.
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| − | Separately, the Spanish government has said it is taking legal action over the collapse of Spanair, saying it could be fined 9m euros.
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| − | In 2010, Spanair reported an operating loss of 115m euros.
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| − | After Spanair's collapse, Irish rival Ryanair said it was examining opportunities in Spain. "We certainly see it as an opportunity to expand our base," it said.
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