The Catalan bank Banc Sabadell’s profits experienced a 39% fall when compared to its 2010 results. However, the entity strengthened its balance sheet thanks to an increase in the core capital ratio, which added up to 10.3%. Despite the persistent instability of the financial markets, Banc Sabadell expanded its market share and its products and services reached 2.7 million customers.
During four intense days, the ceremonial hall of the old Palau del Rei (King’s Palace) of Barcelona, the Saló del Tinell, became a catwalk full of glitter, aromas and, above all, glamour.
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.
CaixaBank, the main Catalan financial institution experienced a 12.8% drop in its net profit when compared to 2010. In 2011, it focused on increasing its core capital ratio to 12.5% -one of the highest levels in Europe- to strengthen its inner resources and, at the same time, left generic funds for insolvencies intact, cementing its robust position in the financial sector.
This year's edition Mobile World Congress will be the first after Barcelona was officially declared the Mobile World Capital, and the organising city of this annual event until at least 2018. The MWC will start on February 27th with the motto “Redefining mobile”. More than 1,400 companies will be present and organisers expect to break last year’s records. There will also be three times more Catalan companies.
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 company plans to open 60 new stores around the world in 2012, and build a new logistics centre in the town of Viladecans, located south of Barcelona. This year, the Catalan brand plans to launch a household linen collection and collaborate with the famous Cirque du Soleil to present new designs inspired by the spectacle.
The participation of the Catalan business community and local governments in the management of Barcelona’s Airport has been halted. This has been a long-term claim by many in Catalonia, as they believe that the centralised management of the airports has clearly benefited Madrid over Barcelona. The new Spanish Minister for Public Works and Transport announced the decision to cancel the tender process to privatise the management of Spain’s two main airports, Madrid Barajas and Barcelona El Prat. The reasons for the decision have been put down to a negative time for the markets and a desire for the value of the assets to increase in the future.
Foreign tourists generated a record amount of revenue last year. The number of visitors also grew by 5.7% in 2011, according to the Catalan Government. Furthermore, Catalonia’s stand at Europe’s most important tourist fair, FITUR, has been declared the best in the current campaign.
The President of Barcelona’s Chamber of Commerce hopes others will join them by adopting a model that combines both public and private cooperation to offer companies new services such as a fund of €2 billion for loans or access to a world network of 1,500 chambers of commerce. With this new model, the Chamber wants to leave the past two years of budget cuts behind, focus on the future, be more useful to its members and offer added value services.
Hoteliers around Catalonia faced a difficult Christmas tourist season with occupancy rates that were below 50% in some areas. The only exceptions could be found in areas where snow attracted skiers, such as Val d’Aran and adjacent counties. In those areas there was an occupancy rate of between 70% and 85%. Rural tourism suffered its poorest results and does not forecast a recovery for 2012.
With this operation, the Catalan Banc Sabadell becomes Spain’s fifth largest banking group. The Bank of Spain has decided to accept Banc Sabadell’s offer to purchase the CAM, a savings bank that was rescued and restructured. Banc Sabadell buys CAM after the savings bank completed a €5.25 billion regularisation process to balance its books. Banc Sabadell will take on 20% of the expected losses over the next ten years from CAM’s real estate properties.
IESE has been ranked the fourth best business school in Europe in 2011 and ESADE the seventh. Both Catalan education centres have improved their positions since last year’s FT ranking.
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.