Air Madrid has announced the start of flights to Punta Cana, Dominican Republic from Madrid as of 14 May during the Fitur travel fair in Madrid. The company also announced plans to launch flights to Puerto Plata in the near future. The airline expects to compete with Air Europa and Iberia by discounting fares 25%. Herminio Gil, a former vice-president and shareholder at Air Europa, is the founder of the new airline, whose main shareholders are retailer Eroski and hotel groups Hotusa, Catalonia and Celuisma. Catalonia operates a hotel in Punta Cana area. In addition to the Punta Cana flight, Air Madrid announced it would also commence flights to Varadero, Cuba and San Jose, Costa Rica from Madrid. Air Madrid is based in the Spanish capital and will employ Airbus A330-200/300 aircraft. Gil told the Spanish press that passengers today want a comfortable seat and safety guarantees. According to him, the company will keep costs down by using a single type of aircraft, flying newer aircraft to keep fuel costs low and subcontracting a good part of services. Gil hopes to grab 20% of the market, flying 300,000 passengers in its first year.