Spanair Discards Flights to Iberian America for the Time Being

Spanair, the Spanish air carrier, ruled out this week any flying to Iberian America in the near future, though it hinted at the possibility of joining other companies to cover international routes.

The airline´s President and CEO Gonzalo Pascual explained two of his carriers –Air Plus and Aerolineas Argentinas- could enter the Star Alliance two years from now as associated members.

Mr. Pascual said Spanair churned out €870 million ($1.13 billion) worth of revenues in 2004, up 4 percent from the year before.

In the course of last year, the airline carried 8.5 million passengers, half a million more than in 2003. Occupancy averaged 64 percent all through 2004.

Nonetheless, Mr. Pascual warned Spanair´s new location in Madrid´s Barajas Airport could put a damper on the company´s expansion plan because it will be forced to defray an additional €57 million ($74.1 million) between 2006 and 2010.