Thomas Cook sets up new airline in Spain amid cost drive

Thomas Cook is setting up a new airline in Spain, a move it hopes will lower costs at a time of tough conditions in the European short-haul market. The new airline will be based in Palma de Majorca and plans to start its first flights in early 2018 with at least three Airbus A320 planes, which were previously flying for the group's Belgian airline. The Majorca aircraft, which fly under a Spanish operating licence, will also be used for Thomas Cook's other airlines, according to seasonal demand, while some staff will be on seasonal contracts. "The new airline and base will provide us with the right platform to better manage the seasonal demand in our business, giving us more control at lower cost as we continue to expand the choice of destinations we offer our customers," said Christoph Debus, chief airline officer at Thomas Cook.<br/>