=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/05/26/financial/= f092906D40.DTL --------------------------------------------------------------------- Thursday, May 26, 2005 (AP) Airline Iberia Targets Low-Cost Carrier (05-26) 09:29 PDT MADRID, Spain (AP) -- Spain's largest airline, Iberia Lineas Aereas de Espana SA, said Thursday that it is considering either buying or creating a low-cost carrier. "We have a situation of fierce competition in the European market," Chairman Fernando Conte told journalists before Iberia's 2005 annual general meeting. Over the last few years, Europe's traditional airlines have lost market share at the expense of budget airlines such as Ryanair and easyJet. Conte said any low-cost service offered by Iberia would provide services to airports actually located in the cities promised — a reference to the practice of some low-cost carriers of flying passengers to airports located in small cities nearby the advertised destination. In the meantime, Iberia is continuing with already announced cost-cutting measures. The company has said it is on track to reach the 350 million euros ($437 million) to 400 million euros ($500 million) in savings it had targeted for the 2003-2005 period. Conte said the company will present a new plan for the 2006-2008 period in early September. Iberia shares closed up 1.2 percent to 2.53 euros ($3.19) in Madrid. ---------------------------------------------------------------------- Copyright 2005 AP