airlines

IAG, the airlines group formed after the merger of British Airways and Iberia, has announced its plans to acquire 100% of Vueling’s capital. Iberia already has 45.85% of the Catalan airline. Now, IAG intends to buy the remaining 54.15%, equivalent to 16.2 million shares. IAG is offering €7 per share, 28% more than Vueling’s last trading price on the stock exchange market. Vueling is one of the few airlines in Europe making a profit. Catalan politicians are “worried” about the purchase, as Vueling is based in Barcelona El Prat Airport and is committed to its expansion. However, Iberia abandoned its plans to develop El Prat and has prioritised Madrid Barajas. A Catalan MEP has asked the European Commission about the possibility of there being a free competition obstacle.

The Catalan company presented its strategic plan for next two years, which fosters its main hub, Barcelona El Prat Airport, by adding 28 new routes from next summer. Vueling plans to transform Barcelona Airport into the main European hub for short and medium distance flights. Currently, it is already the second continental hub in this category. Furthermore Vueling will strengthen its offer to business travellers by unveiling the ‘Excellence’ flying class and direct flights between Barcelona and London-Gatwick or Frankfurt. In addition, the Catalan airline will end 2012 with a profit for the fourth consecutive year.

Board member Toni Freixa announced that FC Barcelona has forecast income of €470 million and outgoings of €427.9 million for the coming year. Therefore, the Catalan club would end the current season with a profit of €35.9 million. The 2011/12 season closed with record profits of €48.8 million against a forecast of €21 million. Besides, the Board will ask the members’ delegates at the club’s assembly to authorise the calling of a referendum on the project relating to the future of the Camp Nou.

The Catalan airline Vueling, based in Barcelona, increased by 16.2% the number of flights compared to a year ago. The airline has defied the Spanish market trend with an increase in its global volume of passengers by nearly 19%. Vueling attributes this increase to a growth in the company’s activity and a rise in its flight occupation rate, which reached 75.5%.

Passengers that catch a cruise after arriving in Barcelona by plane can check-in at the airport until November 6th. At the same time, travellers who arrive by cruise and then catch a flight can check-in at the harbour terminal. More than 47,000 passengers used these services last year.

Vueling will offer almost 1 million seats from Rome in eight different routes, including a new direct connection with Nantes. Rome will be Vueling’s third base abroad, after Amsterdam and Toulouse. “It is the first necessary step to consolidate Vueling’s growth in Rome and in Italy”, stated the Catalan airline’s CEO, Àlex Cruz.

Vueling had a net profit of €10.4 million last year. This marks a clear improvement of 8.4% on its results from 2010 despite the 40% price increase in fuel. Vueling transported 11.6% more passengers in total, and 9% through its European routes last year. The Catalan company reached in 2011 its passenger record, with more than 12.3 million people transported.

The Irish low-cost airline has announced six new destinations from Barcelona El Prat Airport, as well as an increased frequency of flights on several existing routes. Ryanair has decided to occupy part of the market share left by Spanair after it went bankrupt 10 days ago. Furthermore, Ryanair’s President Michael O’Leary, replied to Spanair workers unions, who complained about the poor working conditions offered by the Irish company to hire them. “Nobody is obliged to work for Ryanair”, he said.

The Catalan airline has a debt of €474 million; €260 million of which is with its shareholders and the remaining €214 millions with providers, airports and social security. The Catalan Government has invested €140 million in the airline, split in loans given to the company and in Spanair’s capital. Spanair stopped all its activity on Friday evening because it could not find any additional funding. All the more than 12,000 Spanair passengers passing through Catalonia over the weekend found an alternative flight using other airlines.

Due to the impossibility of finding extra capital, the Barcelona-based airline’s board has taken the decision to cancel all its flights and to suspend the company’s activity. Negotiations with Qatar Airways broke down, which forced Spanair’s board to analyse the company’s viability. The Catalan Government, which partially owns the airline, has refused to invest more money in the company, and thus Spanair stopped flying. Passengers will be refunded and will be able to buy discounted tickets with other airlines.

Emirates have announced they will link Barcelona with Dubai with a daily flight commencing in July. Furthermore, Spanair have announced connections with Beirut and Moscow, as well as more flights with Germany, France, Croatia and Serbia.

The Catalan airline will invest €325 million in increasing the number of destinations and frequency of its flights from Barcelona El Prat Airport. Vueling will base 28 planes at Barcelona, after having bought 5 new aircraft. These initiatives demonstrate that Vueling continues with a strategy to consolidate Barcelona Airport as “a true hub” for intercontinental flights. The Catalan airline expects that up to 2 million of its passengers will change flights at Barcelona.

The Irish low cost airline, Ryanair, has announced it will transport 3 million passengers through the Girona-Costa Brava Airport, where it will operate a total of 59 routes. Ryanair’s Vice President, Michael Cawley, explained that after a long negotiation process an agreement has been reached with the Catalan Government. “It’s not 100% our agreement, it’s not 100% the Government’s agreement, so it’s probably a good agreement” he said ironically. Ryanair and the Catalan Government have been arguing over the last year about the airline’s presence in Girona and Reus airports.

The Barcelona-based airline’s operational benefit reached almost €61 million, which represents a 2% increase compared to the same period last year. Despite the oil price increases, the company maintains its benefits thanks to the high occupancy rate of its flights (more than 80%) and the activity at its international bases.

The Catalan Government and the Irish low-cost airline Ryanair have put an end to their dispute and have announced an agreement to operate from Girona-Costa Brava and Reus for the next five years starting in April 2012. Ryanair has guaranteed that in the first twelve months more than 3 million passengers will pass through Girona Airport and 500,000 through Reus Airport. However, it has one condition: the Spanish public airport operator AENA cannot increase taxes at neither Girona nor Reus airports. If that happens the agreement will become null and void. Ten days ago, Ryanair had completely abandoned Reus. Flights through Girona had been significantly reduced in the summer and they had cut the number of flights operating in the winter months.