Vueling announced (10-Aug-2013) plans to replace its board of directors and name current CEO Alex Cruz as chairman of the board, following the takeover by International Airlines Group (IAG) and subsequent de-listing. An agreement was reached at an IAG board meeting, with Vueling's current board and chairman Josep Piqué to submit their resignations "shortly". The carrier plans to begin "a new phase of its development under the control of IAG with a new board of directors made up of IAG executives yet to be announced." The new board will be "more operational and focused on the day-to-day activities of the airline", chaired by Mr Cruz. Mr Cruz plans to "cooperate closely" with Mr Pique, and said, "All the growth challenges managed by Vueling...have been achieved thanks to the great contribution and vision of each member of the board, who have wisely guided the company in the right direction over the past four years." [more - original PR]
Vueling to replace board of directors and name CEO Alex Cruz as new chairman
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Europe summer 2017 airline capacity outlook: fifth successive summer of above trend seat growth
Airline seat growth from Europe in summer 2017 is set to stay at almost 6% for the third successive summer, according to data from OAG. This rate had not previously been reached since 2010, although this will be the fifth straight summer of growth ahead of its 10 year average rate. The summer 2017 season started on 26-Mar-2017 and, although always subject to further change, the data give a fairly clear picture.
Seat capacity on routes from Europe to Africa will grow the fastest, as the region recovers from a terrorism related drop in demand in North Africa. There will also be above trend growth in almost every other region from Europe (including intra Europe). The only exception is Europe-Middle East, where the newly cautious Gulf airlines' growth is slowing this summer.
On the North Atlantic, always important for the profitability of Europe's leading legacy airlines, growth will be faster than its 10 year trend, but it will at least be a little slower than in the past summer. The loss of market share from the immunised North Atlantic JVs to newer and smaller competitors, including LCCs, is set to continue. As ever, the OAG capacity data provide a window into the changing structure of the airline markets from Europe.
IAG faces challenge to maintain momentum in financial performance
IAG is arguably the most financially focused European airline group in terms of the way it motivates and monitors its own performance. It is no coincidence, then, that its financial performance is now consistently stronger than that of the Lufthansa Group and Air France-KLM (although none are as profitable as the leading LCCs, such as Ryanair). IAG's financial discipline is helping to rehabilitate the airline sector's reputation with professional investors.
In 2016 IAG achieved an operating margin and return on invested capital that were, once more, its best ever. This marked its strong recovery in the years since the global financial crisis (which hit it hard), and consolidated its leadership among Europe's big three legacy airline groups. Only Vueling among the group's constituent airlines suffered from falling returns. IAG shareholders are to be rewarded with a share buyback (IAG's first, and still rare among European airlines) and an increased dividend.
However, by its own standards of success, IAG has more to do. It is not yet meeting its own margin and return on capital targets –partly because it likes to increase them when they come within reach. Its challenge will be to maintain its momentum as the airline cycle's upswing starts to fade.