Madrid Barajas Airport
- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Airport Charges
- Fast Fact Report
- IATA Code
- ICAO Code
- Corporate Address
- Avda. de la Hispanidad, s/n, 28042 Madrid, Spain
- Domestic | International
- Airport Type
- Other airports serving Madrid
- Madrid Torrejon Airport
- 3500m x 45m
4180m x 60m
3500m x 60m
3988m x 60m
- Airlines currently operating to this airport with scheduled services
- Aegean Airlines
Air Arabia Maroc
Air Europa Lineas Aereas
Boliviana de Aviacion
China Eastern Airlines
CSA Czech Airlines
Cubana de Aviacion
Delta Air Lines
KLM Royal Dutch Airlines
LOT Polish Airlines
Norwegian Air International
Plus Ultra Airlines
Royal Air Maroc
Ukraine International Airlines
- Airlines currently operating to this airport via codeshare
- Air Austral
Air New Zealand
All Nippon Airways
China Southern Airlines
Hong Kong Airlines
Middle East Airlines
Pakistan International Airlines
South African Airways
Madrid Barajas (Adolfo Suárez) Airport is the main international gateway to Madrid, Spain. Among the busiest airports in Europe, Madrid Barajas hosts domestic, regional and international passenger and cargo services from over 60 airlines and is the major hub for airlines including Iberia, Air Europa, easyJet, Ryanair and Vueling. Madrid is a major European airport for passengers travelling to and from Latin America, with Spanish and Latin American airlines operating extensively between the two regions.
Location of Madrid Barajas Airport, Spain
Ground Handlers and Cargo Handlers servicing Madrid Barajas Airport
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Fuel & Oil Suppliers servicing Madrid Barajas Airport
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37 total articles
After much delay, in late Jan-2017 the Spanish Council of Ministers approved the airport regulation document setting AENA's airport charges for the next five years. The headline numbers include a 2.2% annual decline in charges from 2017 to 2021, equivalent to an overall cut of 11% through the period.
The legal framework prevents tariff increases before 2025, but the outcome was in contrast with the Spanish airport group's own proposal to freeze charges. Strong traffic growth of 11% to an all time high level of 230 million passengers in 2016 may have influenced the regulator's decision.
In response, AENA has decided to remove an incentive mechanism which rewards airlines for traffic growth with airport charge discounts. The removal of discounts is estimated to offset the 11% reduction by one third.
In fact, this discount scheme has been quite effective in stimulating traffic growth in recent years. However, traffic growth in Spain was also boosted in 2016 by high airline capacity growth switched from other (risk) markets. Airline yield declines are probably noticeably heavier than AENA's regulated price reduction.
On 25-Oct-2016 the UK government announced its support for a new runway at London Heathrow Airport. There is still a lengthy set of processes to be observed before a new runway at Heathrow can finally be built. Moreover, opponents are likely to fight a fierce battle to try to prevent it. Even Heathrow Airport does not expect the runway to open before 2025. 2030 is more likely.
Airlines at Heathrow, led by British Airways and its parent IAG, have given a muted welcome to the UK government's decision. However, they are very clear that they do not wish to see airport charges increase as a result. IAG in particular has long been adamant that it will not pay for the expansion through tariff increases at Heathrow. The airport is among the most expensive in the world and its aeronautical yield rose 2.5 times from 2007 to 2014.
The UK government has set its aim on keeping landing charges close to current levels. Heathrow CEO John Holland-Kaye said that the expansion would provide an airport that is fair and affordable; but history suggests that the airport and its leading airline may define these terms differently. However, as this report demonstrates, IAG has other hubs and other airlines that give it alternative growth options.
After suffering a protracted recession in 2009 to 2013, Spain's air travel market at last looks set to exceed its pre-crisis passenger numbers in 2016, albeit with something of an airline capacity glut. During the recession traffic was actually remarkably robust, thanks to buoyant inbound tourism and the growth of LCCs.
Europe's third largest aviation market by seats is dominated by short haul, with long haul strongly skewed towards trans-Atlantic routes (North and South) – principally operated by a resurgent Iberia and Air Europa. For long haul connections elsewhere Spain relies on other European hubs, although Iberia has re-entered Asia Pacific with Madrid-Shanghai, and plans a Tokyo service. The superconnectors have yet to make a big impression in Spain, but this may change.
Ryanair has been the largest airline by seats in Spain since 2013, the result of its own growth and also of second ranked Iberia's restructuring. IAG's other Spanish airline – the fast-growing Vueling – has been the country's number three ranked airline since 2010, pushing Air Europa into fourth. Madrid has remained Spain's largest airport, but Barcelona's growth has outpaced Madrid's. Spain's airport operator AENA is benefiting from double-digit growth this year, but airlines are suffering yield declines.
One swallow does not make a spring and nor does a rash of aviation strike news guarantee a turning point for the aviation industry. But the signs are ominous. In the month of Jun-2016 (to 20-Jun-2016), there have been 136 articles on CAPA's website mentioning the word 'strike'. This compares with 81 for the first 20 days of Jun-2015. For 2016 so far (1-Jan-2016 to 20-Jun-2016), the 's' word has occurred in 594 articles – about 20% more than in the same period in each of the past two years. If this rate continues, 2016 could be the biggest year for strike-related articles since before the global financial crisis.
The vast majority of the Jun-2016 articles – 80% – relate to Europe. A significant source is air traffic control disputes, particularly French ATC. There have also been strikes and/or strike threats involving airport workers and ground handlers. Among European airlines, Air France has generated the most coverage for its ongoing dispute with its pilots, and it may also face a cabin crew strike. Lufthansa has not yet faced a strike by its employees this year, but has not yet reached new agreements with pilots or cabin crew after industrial action last year.
History tells us that labour's demands grow as profits rise. The apparent increase in industrial action this year could be a signal of an approaching peak in the airline profit cycle. There are other causes of unrest, such as impending French labour legislation, but the correlation reflects some history.
Iberia is emerging as the star pupil in the IAG airline academy, studiously following its 'Plan de Futuro' restructuring programme. It has learnt how to achieve labour productivity improvements and unit cost reductions. With Iberia Express, it has demonstrated it is possible for legacy airlines to launch subsidiaries that combine an LCC cost base with a full service brand.
After receiving punitive beatings in the form of capacity reductions, its diligence is now being rewarded with new aircraft orders and double digit ASK growth in 2015, thanks largely to Latin American expansion (and returning to routes suspended during its restructuring). Brimming with new-found confidence, Iberia is IAG's biggest contributor to ASK growth in 2015.
Iberia is not yet qualified to graduate by recovering its cost of capital, but is on track to achieve this, in accordance with IAG's target, by 2017. As with all airlines, sustainable profitability may require some benevolence from the macro environment, which can deliver harsh movements in unit revenue and in fuel prices. However, Iberia's sharp focus on labour CASK, fuel efficiency and non-fuel overheads should soften the impact of any deterioration in external conditions.
The announcement that Qatar Airways (QA) has acquired a 9.99% stake in the publicly listed IAG was something of a surprise. True, IAG's British Airways was instrumental in bringing QA into the oneworld alliance. The two groups codeshare on a number of routes and QA operates freighter capacity for IAG Cargo. They frequently make comments about each other in public that demonstrate a consderably more balanced relationship than between other big European legacy airline groups and competitors from the Gulf.
There is much more that could be done to build a wider and deeper relationship between the two. The two groups' networks complement each other in Asia Pacific and the Americas and more codesharing would make sense for both. Some form of joint venture agreement is even on the cards.
Nevertheless, on the face of it, deepening the relationship does not require an equity stake on either side. Perhaps it is QA's way of demonstrating that it is serious about a commercial partnership that is both close and long term. For IAG, if the relationship works, then it could give a further advantage over Air-France-KLM and Lufthansa.