Category Archives: Iberia

Iberia to take early delivery of 8 Airbus A330-200s to speed up the retirement of the A340-300s

Iberia (Madrid) and Airbus (Toulouse) have reached an agreement over the early delivery of the A330-200s the airline ordered last year, which will now join the long-haul fleet 14 months earlier than initially planned, between December 2015, and November 2016.

The new aircraft will replace the older Airbus A340-300s.

The new twin-engine, wide-bodied aircraft, with a range of up to 13,400 km, consumes less fuel than the four-engine A340-300s they replace, and also generate less noise and air pollution.

The earlier delivery dates also speed the upgrading of Iberia’s entire long-haul fleet with the new cabins, fittings, and entertainment and communications systems, for an improved customer experience.

Iberia is currently renewing its long-haul fleet and also its long-haul cabins. In recent years the IAG parent has ordered 24 new long-haul aircraft for Iberia, the eight A330-300s delivered in 2013 and 2014; the eight A330-200s; and eight A350-900s to be delivered later.

Meanwhile, the company is retrofitting its 17 Airbus A340-600s with new long-haul cabins.

Image: Iberia. The first new Airbus A330-200 for Iberia will now arrive in December 2015.

Iberia aircraft slide show:

International Airlines Group reports higher earnings in 2014 due to Iberia turnaround

International Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London and Madrid) presented Group consolidated results for the year to December 31, 2014:

IAG period highlights on results:

Fourth quarter operating profit €260 million (2013: operating profit of €113 million) before exceptional items

Revenue for the quarter up 9.9 per cent to €5,015 million, up 5.8 per cent at constant currency

Non-fuel unit costs for the quarter down 0.8 per cent at constant currency

Operating profit for the year to December 31, 2014 of €1,390 million (2013: operating profit of €770 million) before exceptional items

Revenue for the year up 8.0 per cent to €20,170 million and passenger unit revenue for the year down 0.4 per cent at constant currency

Fuel unit costs for the year down 7.8 per cent also down 7.8 per cent at constant currency.

Non-fuel unit costs before exceptional items for the year down 1.9 per cent, down 3.9 per cent at constant currency

Cash of €4,944 million at December 31, 2014 was up €1,311 million on 2013 year end

Adjusted gearing up 1 point to 51 per cent and adjusted net debt to EBITDAR improved 0.6 to 1.9 times

Willie Walsh, IAG Chief Executive Officer, said:

“We’re reporting strong full year results with an operating profit before exceptional items of €1,390 million which is up 80.5 per cent. Total revenue was up 8.0 per cent with non-fuel costs up 7.0 per cent and fuel costs up 0.6 per cent on capacity growth of 9.3 per cent.

“Iberia made an operating profit of €50 million compared to an operating loss of €166 million last year. The airline’s turnaround has been remarkable, both financially and operationally, and we’re very proud of its achievement especially its strong cost discipline. In 2013 we said our intention was for Iberia to breakeven in 2014 and it has fulfilled that promise.

“British Airways’ operating profit increased to €1,215 million up from €762 million last year which shows significant progress towards its long term targets. Vueling made an operating profit of €141 million, compared to an operating profit of €139 million in 2013, with the airline focusing on flexible growth.

“We achieved a strong unit cost performance, down 4.1 per cent, through increased productivity, supplier cost savings and lower fuel unit costs. The latter was boosted by the introduction of more efficient aircraft into our fleet and lower fuel prices in the last quarter of the year. However, the positive effect of the oil price reduction has been partly offset by hedging and significant currency impact.

“In the quarter, we made an operating profit before exceptional items of €260 million which is up from €113 million last year. Revenue for the quarter was up 9.9 per cent. Non-fuel costs were up 10.5 per cent and fuel costs decreased by 0.4 per cent on capacity growth of 5.8 per cent.”

British Airways aircraft slide show:

Iberia aircraft slide show:

Vueling Airlines aircraft slide show:

Is IAG’s seduction of Aer Lingus working?

International Airlines Group’s (IAG) (British Airways, Iberia and Vueling Airlines) (London) continued seduction of Irish flag carrier Aer Lingus (Dublin) seems to be finally working, as the airline is revealing the positives of a takeover by the owner of British and Spanish flag carriers British Airways (London-Heathrow) and Iberia (Madrid).

In a statement to The Guardian, Christoph Mueller, the clover-tailed carrier’s outgoing CEO says that Ireland’s entire economy will benefit if the International Airlines Group takes over Aer Lingus.

Mueller, who steps down as CEO of the airline this week, said IAG’s £1.02 billion (€1.4 billion) ($1.57 billion) offer to buy Aer Lingus would be the biggest single foreign investment in the Republic since the financial crash.

He continued that there was “a great deal of excitement” that Aer Lingus would be able to create jobs on a much larger scale if IAG took charge of the former state-run airline.

Mueller also stressed that talks between IAG and the Aer Lingus trade unions had been “very constructive”.

Aer Lingus announced on Tuesday that its profits had risen by almost 18% to €72 million ($81.6 million) from the previous year. Total revenue was up by 9.2%. For the first time in the airline’s history the number of passengers has exceeded 11 million.

On the hike in profits and the IAG take-over proposal, Mueller added: We profitably expanded our long-haul network utilizing our cost advantage and favorable geographic position and helped establish Dublin as the 7th largest European hub for transatlantic connections.

“Our short-haul business continued to demonstrate its resilience despite a highly competitive market. Commercial initiatives, in addition to cost control, led to the highest operating profit since the financial crisis and 17.8% above last year.”

New video from Iberia; Iberia previews the new Airbus A350

New video from Iberia: A preview of the new Airbus A350.

Qatar Airways acquires a stake in IAG

Qatar Airways (Doha) has bought a 9.99 per cent stake in British Airways’ owner International Airlines Group (IAG), becoming the company’s largest shareholder.

The move will cement a close commercial relationship between BA and the airline, whose owner, the Qatari government, is a significant investor in Britain.

Willie Walsh, chief executive of International Airlines Group, the BA owner, said in : “We’re delighted to have Qatar Airways, one of the world’s premier airlines, as a long-term supportive shareholder. We will talk to them about what opportunities exist to work more closely together and further IAG’s ambitions as the leading global airline group.”

BA sponsored Qatar’s entry into the Oneworld airline alliance, and they also have a cargo partnership. Qatar has indicated it would seek to extend ties following the investment, which could include codeshares on flights via the Gulf state, allowing the airlines to sell tickets on each other’s planes.

Akbar Al Baker, the Qatar airline’s CEO said: “IAG represents an excellent opportunity to further develop our westwards strategy.”

Qatar Airways is prohibited from owning more than a minority stake in IAG under EU ownership rules and said it does not currently intend to increase its 9.99% shareholding.

Report by Assistant Editor Oliver Wilcock from Manchester.

Copyright Photo: SPA/AirlinersGallery.com. Qatar Airways’ second Airbus A380, the pictured A380-861 A7-APB (msn 143) completes its final approach to London’s Heathrow Airport, the home of IAG’s British Airways.

Qatar Airways aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Asia-3/Airlines-Asia3-QZ/Qatar-Airways

Iberia to resume summer flights to Havana

Iberia (Madrid) is resuming summer seasonal service to Havana, Cuba with five weekly flights starting on June 1. The flag carrier will also operate three weekly flights on a Madrid – Medellin – Cali – Madrid routing commencing on July 3 per Airline Route. Both routes will operate with Airbus A330-300 equipment.

Copyright Photo: Ole Simon/AirlinersGallery.com. Iberia Airbus A330-302 EC-LZJ (msn 1490) completes its final approach to the runway at the Madrid Barajas International Airport hub.

Iberia aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Iberia-Lineas-Aereas-de-Espana

Will Aer Lingus now accept IAG’s new raised cash bid to acquire the Irish carrier?

Aer Lingus (Dublin) is now expected to recommend a takeover by the International Airlines Group-IAG (London) (British Airways, Iberia and Vueling Airlines) according to a report today by The Irish Times. This change of heart comes after the IAG raised its bid for the flag carrier to a €2.50 ($2.80) a share cash bid. The offer could face opposition from the Irish government. If accepted and approved, Aer Lingus would join the Oneworld alliance.

Read the full report: CLICK HERE

Copyright Photo: SPA/AirlinersGallery.com. Aer Lingus controls valuable slots at London’s Heathrow Airport. Airbus A320-214 EI-DEF (msn 2256) completes its final approach to Heathrow.

Aer Lingus aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-1/Airlines-Europe-1/Aer-Lingus

Iberia video: Magic in the air

Iberia (Madrid) has published this new video. Santa Claus brings gifts and joy on board.

IAG reveals failed Aer Lingus bid

International Airlines Group (IAG) (London), the parent company of British Airways (Heathrow), Iberia (Madrid) and low cost carrier Vueling Airlines (Barcelona), has revealed that the board of Aer Lingus (Dublin) has rejected a potential takeover attempt.

IAG confirmed in a stock exchange disclosure it had “submitted a proposal” to make an offer for Aer Lingus, but it added that this was “rejected by the board of Aer Lingus.”

IAG added: “There can be no certainty that any further proposal or offer will be forthcoming. A further statement will be made if and when appropriate,”.

“The board has reviewed the Proposal and believes that it fundamentally undervalues Aer Lingus and its attractive prospects. Accordingly, the Proposal was rejected on 16 December 2014,” Aer Lingus said in a stock market disclosure. “Shareholders are strongly advised to take no action.”

This is not the first time Aer Lingus has been the target of a takeover bid. Irish competitor Ryanair (Dublin) has made several attempts to acquire its fellow Irish carrier, but each of these efforts has been blocked on competition grounds.

Last September, a UK Competition Commission (UKCC) investigation into these unsuccessful Ryanair bids revealed that Aer Lingus was looking to combine with another carrier in 2012 and has more recently explored a variety of merger and acquisition scenarios. They also revealed that several sets of talks relating to Aer Lingus acquiring, merging and forming strategic initiatives with other airlines.

Ryanair was ordered to sell its 29.8% stake in Aer Lingus down to 5% by the UKCC, partly based on concerns the shareholding could jeopardize Aer Lingus’ consolidation with other carriers. Ryanair responded by putting its entire stake up for sale, with certain conditions. More recently Ryanair CEO Michael O’Leary has bemoaned a total lack of interest in the Aer Lingus stake.

O’Leary, speaking at the release of Ryanair’s first-quarter results this summer, said: “We’ve had depressingly received no interest in Aer Lingus stake, which has been up for sale for about 18 months.”

The takeover bid from IAG could have could have valued the Republic’s flag carrier at at least €1 billion, industry sources estimate. Earlier, Aer Lingus shares had jumped 14% after the Financial Times reported that IAG was considering a bid.

Reported by Assistant Editor Oliver Wilcock from Manchester.

Copyright Photo: SPA/AirlinersGallery.com. Aer Lingus A320-214 EI-DEN (msn 2432) approaches the runway in London (Heathrow).

Aer Lingus aircraft slide show:

Iberia to add six new routes from Madrid next summer

Iberia (Madrid) is planning to add six new destinations for the next summer season. The flag carrier will add service from Madrid to Budapest (starting on June 2, 2015, three weekly flights), Catania (June 20, one weekly), Florence (March 29, six weekly), Funchal (July 4, twice weekly), Hamburg (March 30, four weekly) and Palermo (June 23, weekly) per Airline Route.

Additionally Iberia Express will add Edinburgh (March 29, four weekly), Naples (June 1, three weekly) and Verona (June 2, three weekly).

Iberia aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-2/Airlines-Europe-2/Iberia-Lineas-Aereas-de-Espana