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- IATA Code
- ICAO Code
- Corporate Address
- 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
- Domestic | International
- Association Membership
- Codeshare Partners
Vueling was created in Jul-2004 with an initial fleet of two Airbus A320s, four routes. As of Jul-2013 Vueling is operating over 208 routes in 105 cities all over Europe and the Middle East. Vueling has 16 operational bases and has transported over 55 million passengers since 2004. Vueling is currently the largest carrier at Barcelona-El Prat Airport, where it has reached over 105 direct destinations during the summer of 2013.
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.
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87 total articles
International Airlines Group: 2015 target raised thanks to BA & Vueling; Iberia still has work to do
As CAPA predicted, IAG increased its operating profit target for 2015 at its recent capital markets day. This reflects better progress than previously expected at British Airways, the integration of Vueling into the group and additional growth at both BA and Vueling.
The group’s target has been raised from EUR1.6 billion to EUR1.8 billion. British Airways’ own 2015 operating profit target has been raised from GBP1.1 billion to GBP1.3 billion. This would bring BA to an operating margin in the region of its best-ever level of 10%.
The increase in the BA target, translated into EUR, is more than the increase in the group target. The implicit reduction in the Iberia target increases the pressure on its restructuring programme to create a competitive cost base. Nevertheless, the group as a whole now faces the real prospect of generating a return on capital ahead of its cost of capital.
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.
On 26-Sep-2013, shareholders in IAG will be treated to a rare event: the opportunity to approve a major aircraft order for the first time in several years. In fact, rather like the proverbial buses after a long wait, there are three of them at the same time. British Airways is getting 787s and A350s and Vueling is getting A320s (including A320neo), while Iberia is getting used to being the poor relation and must prove it can return to profit before any new orders.
After many years of very few new aircraft deliveries (including the years prior to the creation of IAG in 2010), IAG will take around 20 every year until the start of the next decade. This will require it to sustain levels of capital expenditure not seen by the combination of BA and Iberia since the 1990s. A sustained rise in profits will also be needed.
IAG returned to an operating profit in 2Q2013, after a loss in the same period a year ago and a widening of its loss in 1Q2013. BA’s operating profit grew sharply and Iberia’s operating loss was cut by more than 60%. This was the first quarter in 11 that saw the Spanish carrier post a year-on-year improvement in its operating result. Iberia’s return to profit will depend, among other things, on its management negotiating labour productivity gains under its transformation plan.
IAG’s non-fuel costs per ASK were broadly stable in 2Q (excluding newly acquired LCC Vueling) after rising in 1Q, supporting IAG’s contention that the restructuring programme would start to bear fruit in the latter part of the year. Moreover, unit revenue trends remain positive under tight capacity control. In Vueling, IAG now owns Europe’s third largest LCC, putting it ahead of rivals Air France-KLM and Lufthansa in the scale (and cost efficiency) of its low-cost operations. Has IAG reached a turning point?
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.
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