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- VUELING AIRLINES S.A.
Parque de Negocios Mas Blau II
Pla de l'Estany, 5
El Prat de Llobregat
- Main hub
- Barcelona El Prat Airport
- Spain and Canary Islands
- Business model
- Low Cost Carrier
- Association Membership
- Codeshare Partners
Vueling is a Spanish low-cost airline which commenced operations in Jul-2004, now with hubs at Barcelona’s El Prat Airport and Madrid-Barajas Airport. The airline operates an extensive network of domestic and regional services within Spain and throughout Europe. Vueling merged with fellow Barcelona-based LCC and Iberia-controlled Clickair in 2008, citing excessive competition between the two, escalating operational costs and a deteriorating macroeconomic environment. The merger was competed by 2009 with the merged entity keeping the Vueling brand and Iberia taking a 46% equity stake in the merged carrier.
Location of Vueling Airlines main hub (Barcelona El Prat Airport)
Vueling Airlines share price
LCCs will continue to evolve into hybrids of the original core model. CAPA and OAG consider Vueling Airlines fits the LCC profile and it is included in our reporting on this basis. Please note: when reporting for an airline is changed from or to LCC the historical data is not affected and it can lead to a distortion in the current reported data. Contact us if you have any queries.
483 total articles
Vueling CEO sees no 'new opportunities to make money' from more Madrid operations after IAG takeover
80 total articles
Following Luis Gallego’s promotion in Mar-2013 from CEO of Iberia Express to be CEO of Iberia, changes to Iberia’s management structure had been anticipated. On 10-May-2012, Iberia announced changes aimed at better implementing its Transformation Plan and restoring competitiveness and profitability to the carrier. While it is often worth taking a new hammer to crack an old nut, IAG has simultaneously been squirreling away some tastier new ones.
Based on comments at CAPA’s Airlines in Transition conference by Willie Walsh, CEO of Iberia’s parent IAG, that Iberia Express has ex fuel unit costs 40% lower than Iberia’s, we estimate that its CASK is similar to those of easyJet and Vueling. Mr Walsh also said that it is better to restructure what you have than to start something new. However, given fierce resistance to change at Iberia, he has given himself a good deal more leverage by establishing Iberia Express and also by taking over Vueling. Iberia Express has even helped the group to grow its passenger share in Madrid this year.
Airlines in Transition part 4: Bridging the gap between full service and low-cost or hybrid airlines
Our previous report on CAPA’s Airlines in Transition conference (Airlines in Transition part 3: How full service airlines are reshaping models to be more competitive) looked at how full service carriers are responding to the challenges of a weak global economy, high fuel prices and growing competition from LCCs on short-haul and Gulf carriers on long-haul. The low-cost sector is also going through a period of change, characterised by features summarised at the conference by Professor Rigas Doganis.
Like the FSCs, the LCC sector has seen concentration and consolidation and the two sectors have established a growing number of linkages. Moreover, the relaxation of the pure low-cost model of simplicity and the adoption by FSCs of LCC pricing strategies has narrowed the differences between them. Have the differences been eliminated? What are the challenges faced by LCCs/hybrids? What is the right number of fares to offer? We examine these questions and more in this fourth conference report.
Few have single-handedly changed the landscape of global airline alliances the way Willie Walsh has. As the CEO of International Airlines Group, the owner of British Airways and Iberia (and soon Vueling), Mr Walsh had an instrumental role in bringing Qatar Airways into the oneworld alliance.
The ascension of Qatar occurs at a time alliances are undergoing significant change: Qantas in Mar-2013 launched a partnership with Emirates; oneworld's airberlin may partner with Air France-KLM; and Etihad has a staggering number of partners. Mr Walsh is respected amongst fellow executives for his candid and direct views – which peers perhaps wish they felt at the same liberty to say.
During CAPA's recent Airlines in Transition conference in Dublin, Mr Walsh gave a number of his thoughts on global alliances. He supports bilateral relationships and thinks the Qantas-Emirates alliance will be good for both partners. Mr Walsh also noted the limits of alliances: they are mainly to deliver additional revenue, not cost savings, and perhaps exist only because global mergers are not permitted by regulators.
Airlines in Transition part 3: How full service airlines are reshaping models to be more competitive
Over the past three decades, airline industry profits followed a fairly consistent cyclical pattern until the turn of the twenty-first century, which has so far seen seven loss-making years. If 2013 reports a profit, as forecast by IATA, the industry will have had four years of positive results (2010 to 2013). Nevertheless, profits are insufficient to cover the cost of capital and full service carriers still face critical challenges.
The global economy is still weak, fuel prices remain high, LCCs are undermining the legacy carriers’ short-haul markets and the rapid expansion of Gulf carriers is having an impact on their long-haul markets. In our third report on CAPA’s Airlines in Transition conference, we look at how FSCs are responding to these challenges.
This analysis updates CAPA's previous study of European airlines’ labour productivity ("European airlines’ labour productivity. Oxymoron for some, Vueling and Ryanair excel on costs") to reflect the most recent financial results and adds four carriers not included in the original article (Wizz Air, Aegean Airlines and the two IAG subsidiaries British Airways and Iberia).
The contrasting performance of LCCs and legacy carriers is clear, although there are some notable exceptions to the pattern. BA and Iberia’s different labour cost productivity is significant, while Air France-KLM and SAS are weak performers.
We introduce an overall CAPA European airline labour productivity ranking, revealing the carrier with Europe’s most productive workforce, based on six measures.
Recently reported comments from Germanwings CEO Thomas Winkelmann draw attention to transitional IT issues and its costs relative to competitors. This highlights the challenges in scaling up its operations and redefining its product and pricing in order to become Lufthansa’s vehicle for all non-hub European traffic.
Lufthansa has gained several years of experience in owning a low-cost carrier, even if it was run fairly autonomously for much of that time, and aims to combine this with its expertise in premium travel to return its non-hub short/medium-haul business to profit. But will it have the right combination of product/service quality and low costs?
Our analysis suggests that, while Germanwings’ unit costs are well below those of Lufthansa, the cost gap to other LCCs is even greater. In addition, its unit revenues are further below those of Lufthansa than are its unit costs. It also faces a significant operational challenge in growing from 7-8 million passengers to its 20 million target in 2015, while improving Lufthansa’s short/medium-haul earnings by EUR200 million.
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