Iberia to Maintain Aircraft, Engines and Components for Iberworld

Madrid, February 12th, 2008

Iberia has signed three separate contracts with the Iberworld company under which it will perform aircraft maintenance and logistical support services at the installations of Iberia Maintenance in Madrid.

The first contract covers inspections and maintenance of 10 CFM56-5B engines belonging to the Airbus A320 fleet, including disassembly and assembly. The contractual term begins this month and ends in December 2009.

Under the second contract, Iberia Maintenance will service components of Iberworld’s aircraft fleet.

A third contract covers complete maintenance of Iberworld’s Airbus fleet, including major overhauls (Type C maintenance), structural and interior inspections, and modifications as required.

In recent weeks Iberia Maintenance has signed new contracts with the carriers Eurofly- Meridiana, Pluna, Privilege, and Conviasa. Iberworld is a Spanish airline belonging to ORIZONIA, Spain’s larges holiday travel group. It operates a fleet of 10 Airbus A320s and A330s, carrying 180 and 388 passengers, respectively. Iberia Maintenance has broad experience in the maintenance of airframes, engines, and components. In addition to Iberia, it serves more than 100 clients around the world. In 2006 alone the unit inspected 971 aircraft, 134 engines, 45 auxiliary power units (APUs), and 53,988 components. Under the Iberia Group’s 2006-2008 strategic plan the maintenance division is striving to double its revenues from outside clients, especially through maintenance of engines, components, and other high added-value tasks. It is the world’s ninth-largest aircraft maintenance operator and the largest in southern Europe.

Today, Iberia is Spain’s leading airline and also leader on routes linking Europe with Latin America. It posted an operating income of about 5.4 billion euros, net earnings of 116.1 million euros and an Ebitdar of 790.5 million euros in 2006. It is also distinguished by its commitment to socially and environmentally responsible conduct. Along with its franchise partner Iberia Regional, Iberia operates some 1,000 flights each day to about 100 different destinations. Last year, Iberia carried a total of 33 million passengers. It is a member of the oneworld airline alliance, along with American Airlines, British Airways, Cathay Pacific, Finnair, JAL, LAN, Malev, Qantas and Royal Jordanian.