iberia

After two days of stoppages, unions have given Spain's flag carrier airline until Friday to come up with proposal

Company estimates that 15% of staff went on strike on second day of protests

Friday saw efforts to head off stoppage over weekend, with Vueling canceling more than a hundred flights

Summer holiday protests called to bring attention to overworking of staff

Wednesday and Thursday set to be complicated days for travelers

Workers and company reach agreement after long negotiations

Agreement with handling companies avoids industrial action involving 50,000 employees all over Spain

Learn the dates of the upcoming industrial action and the reasons behind it

Iberia and Vueling airlines offer new shuttle flights every 15-30 minutes during rush hour

This July, Barcelona El Prat Airport broke a new record by surpassing 4 million passengers in one month. 4,027,585 travellers passed through the main Catalan airport last month, an increase of 4.9% from July 2013. This makes Barcelona's airport the second busiest in Spain, only just beaten by Madrid Barajas Airport, which registered 37,831 passengers more than El Prat this month, a total of 4,065,416. There has also been good news from Girona Costa Brava Airport, which reported a 5.5% growth in aeroplane capacity utilisation this year, despite the falling passengers numbers overall. The amount of airport passengers in Spain as a whole has now increased for the 9^th consecutive month and represents a 4% rise from this time last year. 

Vueling will launch 14 new routes from Barcelona El Prat Airport in the summer of 2014, reaching a total of 117 destinations from Catalonia’s main airport. Starting next summer, the Barcelona-based airline will favour German and Russian destinations. The company has also bought 7 new aircrafts, to make the total number of Vueling planes based in Barcelona El Prat reach 50. The Catalan Minister for Business and Employment, Felip Puig, said these new routes coincided with the Catalan Government’s tourism strategy. Vueling currently holds 34% of the market share of the El Prat Airport and the company wishes to control 50% of this infrastructure’s air traffic within the next 5 years. With a total of 240 routes and 14 million passengers a year, Vueling is expected to become the leading airline in Europe for short- and medium-distance flights.

Willie Walsh, the CEO of IAG – the group formed by British Airways and Iberia, guaranteed that its subsidiary airline Vueling will continue having Barcelona El Prat Airport as its main base if Catalonia becomes an independent country and even if it is forced to abandon the European Union. “We will continue in Barcelona”, he emphasised on Tuesday in a meeting with press reporters from the Chinese city of Chengdu, according to an article published by Barcelona-based newspaper La Vanguardia. Walsh was in China as British Airways was unveiling a new route linking this city with London.

IAG, the company resulting from the merger of British Airways and Iberia, improved its initial offer from €7 per share to €9.25 to buy 100% of the Catalan airline’s shares. Iberia already owned 45.85% of Vueling and the IAG offer aimed to buy the remaining 54.15%. However, IAG had already stated the operation would still be carried out if it could buy 4.16% of Vueling’s share, in order to own 50.01% of the airline. Finally, more than four fifths of the remaining shareholders decided to sell their stocks to IAG. The international airline will buy 44.66% of Vueling’s shares and then it will own 90.51% of the company based in Barcelona El Prat Airport. Vueling is one of the few European airlines that has made a profit in the last few years. It has a competitive business model, flying to more than 200 destinations.

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.

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.