Iberia has cut fares on major domestic trunk routes by 20-25% from 1 October. Rival Spanair matched the new fares almost immediately and Air Europa is planning a similar move. The European Comunity independent airline organisation ACE says that it is considering complaining to the European Commission on the grounds that the move constitutes a misuse of state aid. It will seek to block Iberia's second tranche, due in 1997.
Source: Flight International