London.—Spanish airline Iberia on Sunday launched a new low-cost airline.
The new airline, Iberia Express, commenced operations with prices starting at 25 euros for a one-way ticket. Iberia Express will cover Spanish cities including Madrid and the islands such as Ibiza, Fuerteventura and Lanzarote. The launch follows the January collapse of Spain's fourth-largest airine Spanair. The low-cost Iberia Express has 500 staff and has a fleet of four Airbus A320 aircraft, according to Iberia.

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