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Spain's Iberia says some routes to go



Spanish carrier Iberia confirmed on Thursday that it plans to close some routes, two days after media reports said tough competition from low-cost carriers would price it out of some European and domestic routes.

The measure "will be taken gradually across the year," communications director Luis Diaz Guell said on the sidelines of the Spanish tourism forum Fitur, without elaborating.

Spanish newspaper El Pais reported on Monday that Iberia is increasingly unable to keep pace with its low-cost competitors, such as Ryanair and Easyjet, who receive an estimated 10 to 17 euros (12 to 20 dollars) subsidy per ticket from local authorities on some routes.

The Spanish carrier has lost its former monopoly at certain provincial airports such as Almeria in the southeast and Jerez in the deep south, and El Pais reported that the price war would ultimately force Iberia to drop some destinations from its network.

Ireland's Ryanair is in April to propose flights between London and Santiago de Compostela for fares ranging from 27 to 69 euros, not including taxes.

El Pais noted that Iberia's normal fare for the route was 130 euros more expensive and reported that EasyJet has captured a 33 percent Spanish market share for flights between Britain and Spain.

27 January 2005, 15:21 CET
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