The new airline will be equipped with three Airbus A310s and the intention is to expand services to Miami and New York. Once the international market is consolidated, the airline aims to start scheduled domestic services within Argentina.
The incremental business development philosophy for the new airline is similar to that already successfully implemented by Spanair to launch its own activities in Spain, where it is poses a serious threat to flag carrier Iberia. Ironically, Iberia's own equally successful strategic plan, which it was forced to introduce after a European Union-directive banning future state handouts, is being exported to Argentina, where managers appointed by Iberia's majority owner, SEPI, hope it will lead to a turnaround in the fortunes of Aerolíneas Argentinas.
Spanair's move into South America should not go unheeded, since this volatile market has enormous potential for a carrier with adequate financial backing and a stable passenger base. This is because many airline companies based in the region are having to cut routes to Europe because of the stressed nature of their finances.
Iberia, however, continues to be a major player in this market and there is no reason to suppose that Spanair cannot follow suit.
Its ever-closer links with the Star Alliance have to be seen as significant in this respect. Spanair recently entered into a codeshare agreement with Star Alliance partner British Midland which will see four flights daily linking London Heathrow Airort to Madrid's Barajas Airport.
Such a link could one day be used to feed passengers to long-haul services operated by Spanair to a variety of destinations in South America, mirroring a similar relationship enjoyed by oneworld partners British Airways and Iberia.
Source: Airline Business
