I was in Malaga last weekend and I was surprised that I only saw 1 Iberia plane landing over the beach I was at.
I thought the main idea behind creating Vueling was to have it based in Barcelona, whereas Iberia would keep the routes from Madrid. That went OK and we can see Vueling opening bases in Amsterdam, Toulouse, etc.
Looking at today's schedule to/from Madrid, Iberia and Vueling are competing on: MAD-Alicante, Malaga, Palma, Barcelona, Paris CDG, Rome FCO, Ibiza, Fuerteventura, Warsaw. All domestic flights from Madrid seem to be flight numbers VY98xx, so I'm wondering if it's something temporary? Vueling doesn't have enough flights to have to use the 9xxx.
I understand they want to have a LCC in Europe with lower costs to feed their long-haul network, but at the moment the Iberia flights are competing against the Vueling flights. On Iberia's website you can purchase a ticket on VY metal (price is higher but includes seat assignment fee and 1 bag), but not vice-versa.
How about fleet? I guess they've had to transfer several A320s to Vueling.
What's the strategy behind Vueling/Iberia for the next few months? Getting rid of all domestic flights to have them operated by either Vueling or Air Nostrum (IB Regional)? How about the European flights?