Air Europa Lineas Aereas
- CAPA Analysis
- Schedule Analysis
- Route Maps
- US Route Data
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- Centro Empresarial Globalia, Carretera Llucmajor, km, 21.5
Llucmajor, Illes Baleares
- Main hub
- Madrid Barajas Airport
- Spain and Canary Islands
- Business model
- Full Service Carrier
- Domestic | International
- Joined Alliance
- Association Membership
- Codeshare Partners
CSA Czech Airlines
Delta Air Lines
KLM Royal Dutch Airlines
Air Europa is a Spanish carrier based in Mallorca, Spain. The carrier operates scheduled and charter services from its operating bases in Madrid, Barcelona and Tenerife South to over 40 destinations in Europe, North America and South America. The airline was founded in 1986 and operates a range of narrowbody and widebody aircraft.
Location of Air Europa Lineas Aereas main hub (Madrid Barajas Airport)
330 total articles
Ryanair continues leading Spain in pax, followed by Vueling and Air Europa from Jan-2013 to Oct-2013
15 total articles
In 3Q2013, IAG continued the turnaround in its operating result that began in 2Q2013. All three of its main brands – British Airways, Iberia and Vueling – saw an increase in their result from the same quarter of 2012. The improvement was mainly driven by healthy unit revenues, although these were diluted by currency effects, and the addition of LCC Vueling in the full quarter for the first time.
It seems that IAG’s prediction that Iberia’s restructuring programme would start to bear fruit in the second half of the year is being proven correct.
Moreover, new FY2013 guidance, for an operating result of around EUR740 million, is ahead of IAG’s previous target, even allowing for the Vueling acquisition. After its 2Q2013 results, we asked if that was a turning point for IAG? At the moment, it would seem that the answer is yes.
Following dramatic declines in airport passenger numbers in 2012 and 2013, Spanish airports operator AENA has decided to introduce an airport charge discounting scheme to offer incentives to airlines to grow their traffic in Spain once more. With plans being formulated to privatise Spanish airports, the success of this initiative will be closely watched by both industry participants and potential investors.
In this report, we examine traffic trends at AENA and consider whether they have been affected by higher airport charges. Our analysis suggests that there is a clear link and so action to reverse falling traffic numbers through lower charges seems a logical step.
The questions then are whether the discounts offered will have the desired effect and how sustainable will be any resultant growth in passenger numbers.
Ryanair is the biggest carrier in Spain by passenger numbers and its CEO Michael O’Leary has called AENA’s discount scheme “almost unachievable”.
Air Europa has been talking up its ambitions in Latin America. It has firm orders for eight Boeing 787 aircraft, but its president Juan Jose Hidalgo recently said it will eventually have up to 22 of the type by 2020-2022. He plans to deploy them on Latin American routes. These could include Mexico City, Bogota, Cartagena and Quito.
Currently, Iberia is the leader on all three routes to Latin America where it competes with Air Europa and is number one overall on Spain to LatAm. However, Air Europa has been picking up routes dropped by its larger rival and Mr Hidalgo says it plans “to fly all the destinations that Iberia flies to”. The pendulum is swinging towards Air Europa in much of the region outside Central America. Iberia has abandoned the Caribbean altogether.
Air Europa has a unit cost advantage and ambitions to grow. This poses a credible threat to Iberia’s Latin American network. Iberia’s cost restructuring will have to succeed if it is to avoid a further dulling of its brightest network jewel.
In this second part of our report on Air Europa, we analyse the airline's revenue development and estimate its unit costs. In recent years, it has achieved revenue growth in spite of falling passenger numbers. However, it has recorded losses for at least the past two financial years, blaming “competition from low-cost airlines” and pilot strike action.
Established as a charter carrier in 1986 and operating domestic scheduled flights since 1993 and international scheduled flights since 1995, Air Europa has been part of the Globalia tourism group since 1991. The first privately owned airline to operate domestic scheduled flights in Spain in competition with Iberia’s then monopoly position, it is somewhat ironic that it is now suffering from increased competition.
Air Europa's unit costs look to be very efficient compared with other European FSCs, but the impact on unit revenues of LCC competition has weighed on its profitability. So, why is it growing its short-haul operations once more in 2013?
Did you hear about the privately-owned, number two home-grown carrier in a country on the Mediterranean among Europe’s top five for airline seats? The loss-making airline has origins in connecting islands to mainland cities and a market share of around 5% of seats in its country. This puts it a long way behind the top two players, Ryanair and the loss-making national ‘flag carrier’ group, and third-placed easyJet.
No, this is not a re-run of our recent report on Italy’s Meridiana, but the similarities with Spain’s Air Europa are striking. There are differences, too. Although both of their ‘flag carrier’ group competitors are loss-making, Air Europa faces a more formidable national competitor in IAG than Meridiana confronts in Alitalia, but its SkyTeam membership may partly offset this. Moreover, Air Europa is growing again in 2013 after some years of capacity cuts.
This is part one of a two part report in which we assess its network and market position. Although financial data is scarce, we will analyse its revenue development and estimate its unit costs in part two.
TAM will soon defect from Star to join its sister carrier LAN in oneworld. TAP Portugal’s future alliance membership is surrounded by uncertainty until its likely renewed privatisation process is complete. These developments throw the spotlight on the strategic importance of routes from Europe to Latin America to European carriers, who dominate this market, in particular the Big Three, but TAP Portugal, Alitalia and Air Europa also have noticeable positions. The South Atlantic market is only around one fifth of the size of the North Atlantic market by RPKs. So why should Latin America matter to European airlines?
In addition to forecast passenger traffic growth rates that, while not spectacular, are still very respectable and superior to those in Europe and on the North Atlantic, Latin America is a fascinating strategic battleground for Europe’s carriers, both directly and through alliances.
It is a territory of changing alliances and emerging players and, for those that are successful, market share gains can provide significantly higher growth then the underlying market.
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