Vueling

Vueling
IATA ICAO Callsign
VY VLG VUELING
Founded 2004
Operating bases
Hubs
Frequent-flyer program Punto
Iberia Plus
Fleet size 108
Destinations 145[1]
Company slogan Love The Way You Fly
Parent company IAG (97.52%) [2]
Headquarters El Prat de Llobregat, Catalonia, Spain
Key people Javier Sánchez-Prieto (CEO)
Revenue Increase €1,102.6 million (2012)[3]
Operating income Decrease €138.1 million (2015)
Net income Decrease €95.3 million (2015)[1]
Total assets Increase €688.7 million (2015)[1]
Total equity Decrease €237.2 million (2012)[3]
Website www.vueling.com

Vueling Airlines, S.A. (styled as Vueling, Spanish pronunciation: [ˈbwelin]; BMAD: VLG) is a Spanish low-cost airline based at El Prat de Llobregat in Greater Barcelona with hubs in Barcelona–El Prat Airport and Leonardo da Vinci–Fiumicino Airport in Rome, Italy. Its name comes from the Spanish word vuelo, which means flight. There are thirteen additional bases at A Coruña, Alicante, Amsterdam, Bilbao, Brussels, Florence, Madrid, Málaga, Palma de Mallorca, Paris-Orly, Santiago de Compostela, Seville and Valencia. A fifteenth summer seasonal base is located at Ibiza.

Vueling serves over 100 destinations in Africa, Asia and Europe and is currently the second largest airline in Spain.[4] In 2014, the airline carried more than 17.2 million passengers, with a load factor of about 80%.

History

Early years

Vueling was established in February 2004 and commenced operations on 1 July 2004 with a flight between Barcelona and Ibiza. The initial fleet consisted of two Airbus A320 aircraft, based in Barcelona serving Brussels, Ibiza, Palma de Mallorca and Paris-Charles de Gaulle.[5] The name Vueling was formed by combining the Spanish word vuelo (flight) with the English gerund suffix -ing.[6]

Initially, major shareholders of Vueling Airlines were Apax Partners (40%), Inversiones Hemisferio (Grupo Planeta) (30%), Vueling's management team (23%) and V.A. Investor (JetBlue Airways) (7%). During its nascent stages, the company's general manager was Lázaro Ros, while Carlos Muñoz was CEO. In November 2007, Vueling appointed managing director of Spanair Lars Nygaard as CEO to replace Carlos Muñoz, who remained as a member of the Board of Directors.

Madrid was added as the airline's second base in 2005, followed by its first base outside Spain at Paris Charles de Gaulle in 2007. Seville followed in December 2009.

Financial concerns and management re-shuffle

2007 was a difficult year for Vueling; Apax Partners sold its then-21% stake in the carrier in June of that year, followed by two profit warnings issued in August and October. Two company directors and the chairman resigned shortly before the second profit warning, citing differences over commercial strategy.[7] Shares in the company were also temporarily suspended.[8] This led to Barbara Cassani, former Chief Executive of UK low-cost airline Go, joining Vueling as chairman of the board in September 2007. The airline then embarked on a restructuring exercise and posted its first profit in mid-2009.[9]

Vueling and Clickair merger

In June 2008, Vueling and rival Spanish low cost airline Clickair announced their intention to merge. The merger was designed to create a carrier better able to compete in the competitive Spanish airline market and mitigate high fuel costs with Iberia as the main industrial partner. While the new company would trade under the Vueling name, Clickair's Alex Cruz was named as chief executive.[10][11]

The deal was subject to scrutiny and approval by European competition regulators, who were concerned that the merged airline would have a significant competitive advantage on around 19 routes. The regulators demanded the release of slots at Barcelona and other European airports as a condition of the merger.[12]

On 15 July 2009 the merger of Vueling and Clickair was completed.[11] The new merged airline operates under the Vueling brand, with Clickair flights and aircraft re-branded under the Vueling name. It became the second largest Spanish carrier flying 8.2 million passengers in 2009,[13] to almost 50 destinations.

Co-operation with MTV

MTV Livery Airbus A320-214 at Paris-Charles de Gaulle, France (2008)

In 2009, Vueling for the second year running co-operated with MTV during the summer season.[14] Two of Vueling's A320 aircraft (EC-KDG[15] and EC-KDH[16]) were re-painted into MTV liveries with some MTV styling on-board too. The designs of both liveries were created by Custo Dalmau and both liveries were removed at the end of 2009.[17] In the summer season of 2010, EC-KDG[16] had again been re-painted into an MTV livery, and in 2011 it was re-painted into a livery based on the DJ and producer David Guetta; the livery has since been removed and co-operation with MTV has since ended.

Recent developments

In November 2010, Vueling announced a new base at Toulouse Airport in France from April 2011,[18] followed in December 2010 by the announcement of a new base in Amsterdam, also to open during April 2011. The Toulouse base opened on 23 April 2011, but has since closed.[19]

In January 2011 further expansion was announced with Vueling adding a further nine aircraft to its fleet, including Airbus A319 aircraft. Six Airbus A320s were delivered between April and June 2011, whilst the remaining two A320s were delivered by the end of 2011.[20]

On 21 March 2012 it was announced by CEO Alex Cruz that Rome would be added as a new base. The base launched on 25 March 2012 with one aircraft based there, the airline has since expanded at Rome with numerous new destinations.[21]

On 5 December 2012, Vueling announced the opening of a new base of operations in Florence, the carrier is to base one aircraft there and serve four new European destinations.[22] Ten months later, on 25 October 2013, Vueling launched Florence-Catania, its first domestic route in Italy.

Since November 2013, the airline has continued to expand from its hub at Barcelona.[23] On 6 November 2013, Vueling announced a new base with one aircraft in Brussels, with seven new destinations from May 2014, in addition to the four previous routes from Brussels. Also in November 2013, Vueling announced an expansion of its base at Rome-Fiumicino. From mid-2014, 8 aircraft would be based there, operating more than 30 routes. The expansion meant Rome-Fiumcino would become Vueling's second largest airline hub, after Barcelona.

During the first weekend of July 2016, Vueling had many delays and cancellations, that resulted in an investigation of the Spanish authorities.[24] During the same month, Vueling canceled all the flights to Sheremetyevo International Airport, Vilnius Airport and Rabat–Salé Airport. Clients are able to get a refund or fly to the nearest airport were Vueling flights.[25]

In October 2016, Vueling shut down their bases in Brussels, Catania and Palermo as part of restructuring measures.[26]

Corporate affairs

The key trends for Vueling over recent years are shown below (as at year ending 31 December):

2008 2009 2010 2011 2012 2013
Turnover (€m) 437 598 790 856 1,103 1,404
Net Profit before tax (€m) −38.6 40.2 65.7 14.9 40.1 132.6
Net Profit (€m) 8.5 27.8 46.0 10.4 28.3 93.4
Number of employees (at year end) 1,013 1,195 1,266 1,389 1,774 1,937
Number of passengers (m) 5.9 8.2 11.0 12.3 14.8 17.2
Passenger load factor (%) 70.3 73.7 73.2 75.6 77.7 79.6
Number of aircraft (average) 21 26 36 44 53 64
Notes/sources [27] [28] [29] [30] [31] [32]

Executives

Takeover by IAG

Vueling's head office in El Prat de Llobregat, Spain

In November 2012, International Airlines Group, whose subsidiary Iberia held a 45.85% stake in Vueling, offered to buy the remaining 54.15% of the company with both Iberia and IAG owning both shares and not resulting in the company being wholly owned by IAG through 100% of shares. IAG, also the owner of British Airways, plans to use Vueling to help stem losses at Iberia. However, market trends (increased profits and improved figures from Vueling resulting in a higher share-price) had made IAG's offer a significant undervaluation of the airline. Vueling had urged its shareholders to reject IAG's offer and its shareholders had until the 8th of April 2013 to decide upon the recommendation.[4]

On 27 March 2013, IAG improved its offer for Vueling, raising its offer per share from €7 to €9.25. Vueling shares quickly surged after the announcement by 8.8% to €9.23 following a temporary suspension as BMAD waited on an official comment from Vueling regarding the updated offer. The acceptance period was also increased by 48 calendar days.[34]

On 9 April 2013, the board of Vueling unanimously recommended shareholders accept an improved offer of €9.25 per share from IAG. IAG CEO Willie Walsh confirmed that the board had recommended the new offer; however, Walsh also stated that Vueling would not be merged with Iberia, saying, "Vueling will operate as a stand-alone entity in IAG group."[35]

On 23 April 2013, IAG acquired control of Vueling which saw the recently purchased 44.66% stake by IAG merged with Iberia's existing 45.85% stake to form a 90.51% shareholding. Vueling remains a standalone company now within the IAG and its management structure is unchanged; however, Vueling's CEO Alex Cruz reports directly to IAG CEO Willie Walsh.[36]

Frequent flyer programmes

Vueling offers two frequent flyer programmes. Punto (Spanish for point) allows you to collect points and then exchange them for flights to any Vueling destination. Iberia Plus can be used to get flights or be cashed in for other Iberia services or those of the other companies linked to the Iberia Plus programme.[37]

Destinations

Main article: Vueling destinations

Codeshare agreements

Vueling has codeshare agreements with the following airlines:[38]

Fleet

Vueling Airbus A320-200
Vueling Airbus A321-200

As of November 2016, the Vueling fleet consists of the following aircraft:[39][40]

Vueling Fleet
Aircraft In Service Orders Passengers Notes
Y Total
Airbus A319-100 6 3 144 144 1 leased from Iberia
Airbus A320-200 94 32 174
180
186		 174
180
186		 2 leased from Air Berlin
Airbus A321-200 10 — 220 220
Total 110 35

References

  1. 1 2 3 "IAG - International Airlines Group - Annual Reports".
  2. ↑ "IAG - International Airlines Group - News Release". Retrieved 10 July 2015.
  3. 1 2 Results FY12
  4. 1 2 "IAG considering Vueling options after snub". RTE.ie. 8 March 2013. Retrieved 10 July 2015.
  5. ↑ "The History of Vueling". Vueling.com. Retrieved 2011-12-08.
  6. ↑ "Vueling Launches Flight Service from Vienna to Rome" (PDF) (Press release). Vienna Airport. 4 May 2015. Retrieved 14 August 2015.
  7. ↑ "Madrid-listed budget carrier Vueling has warned higher fuel costs and lower ticket prices could result in it reporting a loss this year". E-tid.com. 2007-10-02. Retrieved 2011-12-08.
  8. ↑ "The Spanish stock market regulator CNMV has suspended trading in low-cost carrier Vueling's shares". E-tid.com. 2007-10-01. Retrieved 2011-12-08.
  9. ↑ Vueling completes restructuring; reports Q2 operating profit
  10. ↑ "Vueling to Merge With Clickair". News.airwise.com. 2008-07-08. Retrieved 2011-12-08.
  11. 1 2 "Vueling new airline name to UK. TravelMole. Phil Davies". Travelmole.com. 2009-07-06. Retrieved 2011-12-08.
  12. ↑ "Iberia-Clickair-Vueling surrender slots for merger approval". Flight International. 2009-01-09. Retrieved 2011-12-08.
  13. ↑ "Vueling Passenger Statistics" (PDF). Retrieved 2011-12-08.
  14. ↑ "Vueling by MTV" (in Spanish). Spain: MTV. 2010-02-14. Retrieved 2011-12-16.
  15. ↑ Lundgren, Johan (1996-2006). Photo Search Results EC-KDG. Airliners.net. AirNav Systems LLC. URL accessed on 2011.
  16. 1 2 Lundgren, Johan (1996-2006). Photo Search Results EC-KDG. Airliners.net. AirNav Systems LLC. URL accessed on 2011.
  17. ↑ "Vueling Cooperation with MTV". Vueling.com. Retrieved 2011-12-08.
  18. ↑ "Vueling announces base in Toulouse". Flight International. 2010-11-09. Retrieved 2011-12-08.
  19. ↑ "Vueling announces base in Amsterdam". Blog.flylowcostairlines.org. 2010-12-08. Retrieved 2011-12-08.
  20. ↑ "New Vueling Aircraft". Letstravelmag.com. 2011-01-21. Retrieved 2011-12-08.
  21. ↑ "Notizie". Retrieved 10 July 2015.
  22. ↑ "Vueling", Airliner World: 7, February 2013
  23. ↑ "Vueling network to expand to 100 destinations from Barcelona-El Prat Airport in 2013". Retrieved 10 July 2015.
  24. ↑ Vueling contrata 34 pilotos y alquila 6 aviones para atajar su crisis
  25. ↑ Vueling cancel·la tres rutes des del Prat per millorar la seva operativa
  26. ↑ http://www.intelligent-aerospace.com/pt/2016/10/10/vueling-closes-bases-rolls-out-restructuring-plan.html
  27. ↑ FY08
  28. ↑ FY09
  29. ↑ FY10
  30. ↑ FY11
  31. ↑ FY12
  32. ↑
  33. 1 2 3 4 5 Key Executives
  34. ↑ "IAG ups bid for budget airline Vueling by one third". Reuters UK. 2013-03-27. Retrieved 10 July 2015.
  35. ↑ Menon, Praveen (2013-04-10). "IAG chief says won't merge Spanish airline Vueling with Iberia". Reuters. Retrieved 10 July 2015.
  36. ↑ Robert Wall (23 April 2013). "British Airways Parent IAG Wins Control of Spain's Vueling". Bloomberg.com. Retrieved 10 July 2015.
  37. ↑ "Frequent flyer programmes. program". Vueling.com. Retrieved 2013-02-23.
  38. ↑ "Profile on Vueling". CAPA. Centre for Aviation. Archived from the original on 2016-11-11. Retrieved 2016-11-11.
  39. ↑ "Vueling fleet". Flightglobal. Retrieved 2014-03-03. (subscription required)
  40. ↑ "Vueling Fleet Details and History". planespotters.net. 13 June 2015. Retrieved 13 June 2015.

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