el prat

IAG, the merger between British Airways and Iberia, improved its offer on Vueling’s shares, increasing from a price of €7 per share to €9.25. The board of the Barcelona-based airline considers the new conditions to be “reasonable” and have decided to recommend that the shareholders accept the offer. In fact, some Board members, such as Vueling’s President Josep Piqué have announced that they will sell their shares to IAG. Iberia already controls 45.85% of Vueling and IAG’s aim is to completely control the Catalan airline. Therefore, the takeover is on the condition that they are able to acquire at least 4.16% of Vueling’s shares, which would mean that IAG would control at least 50.01% of the Barcelona-based airline. The deadline to accept the offer expires on the 19th of April.

The Spanish Airport Authority (AENA), which owns and manages Barcelona El Prat Airport, has issued the tender to allocate the construction and management of a golf course located between the sea beach and the airfield’s third runway for 30 years. The golf course will be 175,000 square meters and have 9 holes. It will be for the passengers’ use, mostly those who are transferring through El Prat Airport. It should be operational by summer 2014, profiting from some of the infrastructure of a previously existing golf course. The project will come with restaurants and shops, as well as rooms for relaxing or holding meetings. Furthermore, in the future a beach club might also be built. The aim is to raise Barcelona Airport’s attractiveness as an international hub connecting short- and medium-distance flights with intercontinental ones.

IAG, the airline formed after the merger of British Airways and Iberia, has improved its offer for the total takeover of Barcelona-based Vueling, one of the few airlines in Europe which has earned a profit in the last few years. Earlier this month, Vueling’s board rejected IAG’s offer, presented in November, as they considered it to be too low. Now, the shareholders have had the last word. IAG already controls 45.85% of Vueling. With the new offer, if IAG manages to control 50.01% of Vueling – despite it officially aiming to get 100% of the Catalan airline shares – the operation will go ahead.

Vueling earned a net profit of €28.3 million in 2012, almost three times more than the €10.3 million of 2011. It transported 14.8 million passengers, 20.1% more than in the previous year, with an occupancy rate of 77.7%. The Barcelona-based airline continues with its international expansion, especially in Western Europe, and it has become the third largest airline in Paris-Orly and Roma-Fiumicino. It also increased the passenger traffic share it controls in Barcelona El Prat Airport by up to 30%. The total revenue reached €1.103 billion last year, 27.7% more than in 2011. Vueling occupied part of the market share left by Spanair in Barcelona. Besides. the Spanish Stock Market Authority has authorised IAG’s take-over operation of Vueling, aiming to take total control of the Catalan company.

The Barcelona-based company transported 14.8 million passengers in 2012, a new record for the airline. Vueling, created in 2004, transported 20% more passengers compared to 2011. The 14,794,857 customers meant a 77.7% occupancy rate over 108,433 flights, a 17.6% increase on the previous year, which led to the company closing with a profit for the fourth year in a row. Vueling is today the second biggest airline in Spain after Iberia and the third one in the number of customers, after Ryanair and Iberia.

The main Catalan airport is increasing the number of intercontinental flights in terms of both destination and frequency, one of the strategic drives implementing its expansion plan. Barcelona’s Airport already has 31% of the intercontinental traffic in Spain, despite the fact that the partially state-owned Iberia’s international flights abandoned the Catalan airport years ago in favour of Madrid Barajas. Barcelona Airport has attracted other airlines, such as Emirates, Qatar Airways and Turkish Airlines, and has specialised in connections to the Middle East and Asia, although it also has flights to the Americas. Last week, there was a press release that stated that 35.15 million passengers went through Barcelona Airport in 2012.

The number of people travelling through the main Catalan airport reached a new record last year, despite the economic recession. 35,145,176 people travelled through the airport, a 2.2% increase compared to 2011. Madrid-Barajas, Barcelona Airport’s main competitor, saw the number of its passengers drop by 9% to a total of 45.19 million people. Barcelona’s improvement is due to the significant increase in international passengers, since domestic ones dropped by 9.6%. The greatest increase was in the number of passengers arriving from or going to another EU state, which grew by 9.2%. People flying from or to outside the European Union increased by 8.9% and intercontinental passengers by 3.45%.

After two days of protests making Barcelona El Prat Airport being without cabs for several hours, taxi union representatives and the Metropolitan Taxi Institute – in charge of managing the sector – have agreed to eliminate the shift system and find another way to reduce the number of taxis on the streets. Taxi drivers have stopped all their protests and they will be using the previous system establishing two days of rest per week. The shift system had been implemented to better pair the availability of taxis to the real demand, which has decreased because of the recession. The system had been approved by Barcelona taxi drivers in a binding referendum. However, one week after its implementation, some of them protested stating that it had reduced their turnover.

Taxi drivers have protested against the new car shifts implemented as of last week. The new shift system affects all Barcelona taxis and it has been designed to reduce the number of cars on the streets in order to increase drivers’ profits by reducing the available taxis at a given time. However, some taxi drivers think the new shifts cause their turnover to drop. For this reason they have decided to protest by not serving Barcelona El Prat Airport or Barcelona Sants Station with cabs on Monday afternoon. The Metropolitan Taxi Institute, in charge of managing the sector, has already announced “talks” with taxi union representatives to “evaluate” the new system.

From the next summer season, the Irish low-cost airline will cancel 4 routes from Barcelona Airport and reduce the frequency of 20 others due to the increase in airport taxes imposed by the Spanish Government. This decision means that 170 fewer flights will operate through the Catalan airport per week. In addition, the number of passengers transported per year by Ryanair will also be reduced, dropping from 5.4 million to 4.2 million. Furthermore, it will mean the direct loss of 1,200 jobs at Barcelona El Prat Airport, according to the airline. Ryanair will also cancel routes from Madrid Barajas and it will eliminate the flight linking the Spanish capital to Girona airport.

The number of passengers going through Barcelona’s Airport between January and October grew by 4%, compared to the same period last year. In just 10 months, the airport of the Catalan capital had more passengers than in the entire of 2010. The number of international passengers increased by 6.2% and those coming from the Middle East, non-Schengen Europe and Argentina grew by 25%. In fact, Barcelona El Prat’s expansion strategy is focused on international flights, especially increasing the number of intercontinental flights and their destinations. However, the number of domestic flight passengers dropped by 11.1%.

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.

Catalonia’s main airport had 3,874,131 passengers in August which is the highest monthly figure the airport has ever achieved. In the first 8 months of the year, there have been over 24 million passengers travelling through Barcelona El Prat Airport, 4.4% more than during the same period in 2011. Girona Costa Brava Airport also had success this August with 14.5% more passengers and 15% more flights compared to the same month last year. However, the number of passengers at the small Reus Airport fell by 28.5%, due to Ryanair’s reduction of flights.

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%.