Tag Archives: Vueling Airlines

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

Vueling adds three new African destinations from Barcelona

Vueling Airlines (Barcelona) will add Rabat (Morocco), Yerba (Tunisia) and Accra (Ghana) from Barcelona starting on June 20.

The airline will also launch a summer service to Istanbul. From June through October the airline will fly three times a week from Barcelona.

After launching flights to Marrakech in 2009, the airline gradually added new African services and now has 16 routes reaching 11 destinations on the continent: Marrakech, Rabat, Casablanca, Nador, and Fez in Morocco; Tunis and Yerba in Tunisia; Algiers and Oran in Algeria; Dakar in Senegal; Banjul in Gambia; and Accra in Ghana. At 3,960 km, the Barcelona-Ghana route will be the longest operated by the airline.

Vueling aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-3/Airlines-Europe3-QZ/Vueling-Airlines

Vueling Airlines announces it has become the first airline in the world to implement a contactless payment method for tickets with a cell phone

Vueling Airlines (Barcelona) claims to have become the first airline in the world to implement a contactless payment method using a cell phone. The airline issued this statement:

Vueling once again leads the pack in technological innovation, become the first airline in the world to implement contactless systems for paying with cell phones. On its app the pioneering Barcelona-based airline has deployed two revolutionary systems —Near Field Communication (NFC), and Scanning— to enable users to automatically enter their personal and credit card data during the purchase process. The two systems are available for telephones using the Android operating system. For security’s sake they are enabled only to fill in the data, but not to complete the purchase. A version for the Apple iOS is initially confined to storing credit card data which can be retrieved only upon detection of the user’s fingerprint when needed for a purchase.

The NFC system reads and transmits wireless data, and it needs a contactless credit card and a terminal enabled for its use. The Scanning system requires only a camera phone to photograph the credit card. The system extracts the necessary data from the photo and transmits it automatically to the app. The service is optional, and can be invoked from the “payment data” screen. There the user may choose one of these options for automatically entering the personal and credit card data needed for a purchase. At the end of the process the user must select “Pay now” to complete the payment.

This new service on Vueling’s app reflects the company’s strategy for giving customers the easiest possible experience that is compatible with security. Vueling’s IT chief Samuel Lacarta comments “We have to take advantage of the speed of technological advances to enable the customer to worry only about when and where to fly, and not waste time copying credit card numbers, for example. If we can do this without compromising security, the customer will have a much simpler experience, which is what technology is for.”

Since launching its website in 2004 and the creation of its cell phone app in 2009, Vueling has been positioned as a leader in the use of technology to smooth and enhance passengers’ travel experience. The cell phone app for iOS and Android, incorporates the airline’s three fare levels, along with a space for flight status information via the Vueling.com website, and the option to use a wearable boarding pass with Sony’s Smartwatch 2.

Vueling Airlines aircraft slide show:

http://airlinersgallery.smugmug.com/Airlines-Europe-3/Airlines-Europe3-QZ/Vueling-Airlines

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:

IAG reports a third quarter net profit of $751 million

International Airlines Group (IAG) (British Airways, Iberia, Iberia Express and Vueling Airlines) (London) reported a third quarter net profit of €598 million ($751 million) up 3.1% from €580 million ($728.4 million) in the same quarter a year ago.

The airline group issued this full statement:

NINE MONTHS RESULTS ANNOUNCEMENT

International Consolidated Airlines Group (IAG) presented Group consolidated results for the nine months to September 30, 2014.

IAG period highlights on results:

Third quarter operating profit €900 million (2013: €690 million) before exceptional items, €210 million better than last year
At constant currency, third quarter passenger unit revenue down 0.9 per cent and non-fuel unit costs down 4.5 per cent
Revenue for the quarter up 8.5 per cent to €5,866 million, up 6.9 per cent at constant currency
Fuel unit costs for the quarter down 7.5 per cent at constant currency
Operating profit for the nine months €1,130 million (2013: €657 million) before exceptional items, €473 million better than last year
Exceptional charge of €82 million for currency re-evaluation
Cash of €5,064 million at September 30, 2014, up €1,431 million on 2013 year end
Adjusted gearing down 4 points to 46 per centPerformance summary:


	Nine months to September 30
Financial data € million	2014	2013	Higher / (lower)
Passenger revenue	13,435	12,299	9.2 %
Total revenue	15,155	14,113	7.4 %
Operating profit before exceptional items	1,130	657
Exceptional items	(82)	(309)
Operating profit after exceptional items	1,048	348
Profit after tax and exceptional items	694	77
Basic earnings per share (€ cents)	33.4	3.2
Operating figures	2014	2013	Higher / (lower)
Available seat kilometres (ASK million)	190,234	172,234	10.5 %
Revenue passenger kilometres (RPK million)	153,537	140,220	9.5 %
Seat factor (per cent)	80.7	81.4	(0.7pts)
Passenger revenue per RPK (€ cents)	8.75	8.77	(0.2)%
Passenger unit revenue per ASK (€ cents)	7.06	7.14	(1.1)%
Non-fuel unit costs per ASK (€ cents)	5.00	5.21	(4.0)%
€ million	At September 30,	At December 31,	Higher / (lower)
€ million	2014	2013	Higher / (lower)
Cash and interest-bearing deposits	5,064	3,633	39.4 %
Adjusted net debt(1)	5,547	5,701	(2.7)%
Adjusted gearing(2)	46%	50%	(4pts)

(1) Adjusted net debt is net debt plus capitalised operating aircraft lease costs.
(2) Adjusted gearing is adjusted net debt, divided by adjusted net debt and adjusted equity.

Willie Walsh, IAG Chief Executive Officer, said:

“This quarter we are reporting an operating profit before exceptional items of €900 million. At constant currency, revenue was up 6.9 per cent with non-fuel unit costs down 4.5 per cent and fuel unit costs down 7.5 per cent.

“We continued to grow capacity efficiently and both our non-fuel and fuel unit cost performances were strong with the latter boosted by the introduction of new, more efficient aircraft into our fleet.

“British Airways made an operating profit of €607 million, compared to €477 million last year, and grew capacity while retaining its focus on cost control. Iberia’s operating profit increased to €162 million from €74 million last year highlighting its strong cost discipline combined with the continued benefits of restructuring. Vueling continued to grow, developing new bases in Italy and Belgium, with an operating profit of €140 million compared to €139 million last year.

“In the nine months, we made an operating profit of €1,130 million before exceptional items, up by €473 million from last year”.

Copyright Photo: Paul Denton/AirlinersGallery.com. Iberia improved its financial performance with labor stability which was one of the main drivers for a better financial performance of the group in the third quarter. Iberia’s Airbus A320-214 EC-MCS (msn 6244) taxies at Geneva in the new look.

British Airways:

Iberia:

Iberia Express:

Vueling Airlines:

IAG has its best second quarter since 2007

International Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London) reported second quarter net income of €280 million ($376 million) up from €127 million ($170.5 million) net income for the same period a year ago. This is the best second quarter results since 2007.

Read the full report: CLICK HERE

Copyright Photo: Tony Storck/AirlinersGallery.com. Boeing 767-336 ER G-BNWD (msn 24336) of British Airways arrives at Baltimore/Washington.

British Airways:

Iberia:

Vueling Airlines:

IAG reduces its first quarter loss to $206.3 million

International Consolidated Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London) today (May 9, 2014) presented Group consolidated results for the first quarter and the three months to March 31, 2014.

IAG period highlights on results:

. First quarter operating loss €150 million ($206.3 million) (2013: operating loss of €278 million – $382.3 million) before exceptional items
. Revenue for the quarter up 6.7 per cent to €4,203 million, up 7.6 per cent at constant currency
. Non-fuel costs up 3.8 per cent, up 4.8 per cent at constant currency
. At constant currency, first quarter passenger unit revenue down 1.4 per cent (excluding Vueling down 0.5 per cent) and non-fuel unit costs down 6.2 per cent (excluding Vueling down 4.2 per cent)
. Fuel unit costs for the quarter down 8.9 per cent, 7.4 per cent at constant currency
. Cash of €4,004 million at March 31, 2014 was up €371 million on 2013 year end
. Adjusted gearing remains at 50 per cent

Willie Walsh, IAG Chief Executive Officer, said:

“We’re pleased that our quarterly operating loss has reduced significantly from €278 million last year to €150 million, especially as Vueling’s quarterly losses were not included last year as they weren’t in the Group. At constant currency, revenue was up 7.6 per cent and non-fuel costs rose 4.8 per cent.

“Iberia has almost halved its losses from quarter one last year with an operating loss of €111 million compared to €202 million. The airline continues to benefit from restructuring and these figures don’t reflect the impact of recent pay and productivity agreements which took effect in April. While the restructuring remains work in progress, Iberia is gradually resuming some routes including longhaul services to Santo Domingo and Montevideo.

“British Airways made an operating loss of €5 million in the quarter, compared to a €72 million operating loss in 2013. The airline has increased capacity within a controlled cost environment and benefited from the efficiency of its new Airbus A380 and Boeing 787 aircraft.

“Vueling made an operating loss of €30 million and has managed to keep its losses flat while growing capacity. The airline continues to grow with its main focus in southern Europe”.

Copyright Photo: Antony J. Best/AirlinersGallery.com. British Airways’ Airbus A380-841 G-XLEB (msn 121) approaches the runway at London’s Heathrow Airport.

British Airways:

Iberia:

Vueling Airlines:

Vueling to add five seasonal flights this summer

Vueling Airlines (Barcelona) will add five seasonal new routes this summer, including twice-weekly Alicante-Santander (starting on June 20), twice-weekly Barcelona-Cluj (June 27), weekly Barcelona-Santa Cruz de la Palma (June 21), twice-weekly Barcelona-Tallinn (June 20) and Santiago de Compostela-Amsterdam (three flights per week) (June 21) per Airline Route.

Copyright Photo: Karl Cornil/AirlinersGallery.com. Airbus A320-232 WL EC-LUO (msn 5530) with Sharklets approaches Brussels for landing.

Vueling Airlines:

International Airlines Group returns to profitability for 2013

International Airlines Group (IAG) (British Airways, Iberia and Vueling Airlines) (London and Madrid) today (February 28, 2014) presented Group consolidated results for the year to December 31, 2013.

IAG period highlights on results:

Fourth quarter operating profit €113 million (2012: operating loss of €40 million) before exceptional items
At constant currency and excluding Vueling and one-offs, fourth quarter passenger unit revenue up 2.7 per cent, and non-fuel unit
costs down 2.7 per cent
Operating profit for the year to December 31, 2013 of €770 million (2012: operating loss of €23 million) before exceptional items
Revenue for the year up 3.1 per cent to €18,675 million and passenger unit revenue for the year up 0.6 per cent (3.7 per cent at constant currency)
Fuel costs for the year down 2.5 per cent to €5,951 million (2012: €6,101 million). Fuel unit costs down 5.0 per cent at constant currency
Non-fuel costs before exceptional items for year down 0.7 per cent at €11,954 million. Non-fuel unit costs down 5.6 per cent, down 2.7 per cent at constant currency

Cash of €3,633 million at December 31, 2013 was up €724 million on 2012 year end (December 2012: €2,909 million).
Adjusted gearing down 1 point to 50 per cent

Willie Walsh, IAG chief executive, said:

“In 2013, we strengthened the Group by acquiring Vueling, embarking on Iberia’s transformation and enhancing British Airways’ revenue performance. This has led to a strong financial recovery and return to profitability with a turnaround of nearly €800 million. Our operating profit was €770 million before exceptional items, with passenger revenue up 5.8 per cent and non-fuel costs down 0.7 per cent.

“British Airways continued its solid revenue performance this year and we’re seeing cost improvements, resulting in an operating profit of €762 million. This is the first full year that it’s benefited from the additional Heathrow slots and greater network flexibility created by bmi’s integration. Both the A380 and Boeing 787 were introduced into the airline’s fleet successfully. The new aircrafts’ economic and environmental performance has been excellent and customers love them.

“Iberia has made huge progress on cost control as its restructuring takes shape and great credit should be given to all those involved. It has reduced its losses in the year, reporting an operating loss of €166 million. The recent pay and productivity agreements between Iberia and its pilot and cabin crew unions are key to reducing the airline’s costs further and providing the foundation for profitable growth.

“Vueling is a great asset and provides a new cultural dimension to IAG. The airline reported an operating profit of €168 million from April 2013, when we acquired it, and expanded its network across continental Europe. To increase capacity while improving profit margins is a tremendous achievement and underlines Vueling’s value to the Group.

“We have shown strong financial management this year. Despite buying Vueling and increasing our capital expenditure, cash was up €724 million versus last year and adjusted gearing was down 1 point to 50 per cent.

“Quarter 4 saw an improved financial performance from all our airlines and we are reporting an operating profit of €113 million before exceptional items. Passenger revenue was up 4.0 per cent and non-fuel costs were down 4.1 per cent”.

Trading outlook:

In 2014 we expect to make steady progress towards our 2015 Group operating profit target of €1.8 billion, with relatively flat unit revenue growth, and margin expansion driven by falling unit costs.

Copyright Photo: Keith Burton/AirlinersGallery.com. Vueling has been a good buy for IAG. Formerly operated by Belle Air Europe, Airbus A320-214 EI-LIS (msn 3492) has been repainted at Southend.

British Airways:

Iberia:

Vueling Airlines:

Vueling Airlines announces a new base in Rome, can Alitalia survive?

Vueling Airlines (Vueling.com) (Barcelona) is expanding operations in Italy (especially Rome).

The company will launch a new Rome (Fiumicino) base next summer season starting on April 2, 2014. Vueling will launch 22 new routes from Rome’s Fiumicino Airport throughout the summer. Vueling will base eight Airbus aircraft at the airport. The new destinations from Rome include Alicante, Amsterdam, Athens, Bari, Berlin, Brindisi, Brussels, Catania, Corfu, Dubrovnik, Genoa, Lamezia Terme, Munich, Mykonos, Palermo, Prague, Rhodes, Santiago de Compostela, Seville, Split, Thira (Santorini) and Turin.

Vueling is also adding new routes from Florence for the summer season.

Can Alitalia survive this new assault by lower cost Vueling and Ryanair?

Vueling Airlines: