Unions have described the initiative as 'copying British Airways' (BA). UK carrier BA and Iberia, which lost EUR273 million last year, are due to sign a merger agreement very soon.

A Spanish carrier union spokesman said: "We fear that the creation of a company of low cost is nothing more than the cession of part of Iberia with the only objective to cut costs from cabin crew and pilots. We suspect they could be trying to do the same as British Airways did."