Conflict of interest between the Aena privatisation and the Iberia’s growth plans.
Going on with the negotiations of Aena with Norwegian and considering that the Madrid Airport Terminal 4 (T4) is currently dedicated to the Oneworld airline alliance, it might be a new problem for Iberia if the low cost airline based their operation at this terminal too.
The Iberia’s board recently said that the short and medium haul became a problem for the airline. The arrival of Norwegian to T4 in Madrid airport, which under-utilisation is a great concern for the Government, would contribute to worsen the situation of the Spanish airline.
Industry sources said to vozpopuli “It is the snake that bites its tail. Low cost airlines will bring a lot of traffic to Madrid airport, but will also capture the short and medium haul, making Iberia unable to compete in this area.”
According to this piece of news, despite the successive delays of the privatisation, this is a matter of priority for the Government and they are now focused on adding a value as high as possible to Aena.
At the same time, the Government is keeping a watchful eye on the new Iberia’s Strategic plan, to be presented in mid-November.
In spite of the fact that Iberia has cut up to 17 routes in the short and medium haul to make it profitable, they did not succeed so far. If Norwegian confirms their arrival to T4 the target would be far more diffuclt.
Source: Vozpópuli
