IAG considering full takeover of Spanish low cost airline Vueling The carrier was recently picked out by analysts at HSBC as one of the potential beneficiaries of consolidation in the European aviation industry, following the collapse of rival Spanair earlier this year. Vueling last month unveiled plans to increase the number of destinations it serves from its main base in Barcelona by 28 to around 100 next summer. In August, IAG warned it was heading towards a loss for 2012 owing to its problems in Spain. The airlines group is working on a major restructuring of Iberia, which made an operating loss of €263m in the first six months of the year. The overhaul is expected to involve as many as 7,000 job cuts. Iberia launched its own low-cost airline, Iberia Express, in March but has been in a year-long conflict with SEPLA, the Spanish pilots union, over pay and conditions. The Spanish government appointed an arbitrator in a bid to resolve the dispute, which has led to strikes, but the situation is yet to be resolved. Analysts suggested a potential move on Vueling could help IAG side-step the problems it is having at Iberia Express and pursue its short-haul ambitions through that avenue instead. Aviation analyst John Strickland of JLS Consulting said it would be "understandable" for IAG to buy the remaining share capital in Vueling. "It [Vueling] is efficient, well run and profitable in a difficult market," he said. IAG reports third-quarter results on Friday.