Entries in Iberia (9)

Wednesday
Jun292011

Vueling starts Madrid-Mykonos seasonal non-stop route

The Barcelona-based regional carrier Vueling Airlines will start a new seasonal route Friday.  It will run between Barajas Airport in Madrid (IATA: MAD; ICAO: LEMD) and Mykonos Island National Airport (IATA: JMK; ICAO: LGMK) on the Greek Cycladic island of Mykonos.  The route will run in both directions on Monday, Friday, and Sunday until July 28, when it will begin to run on Thursday as well.  As of this posting, travelers can fly this route on these four days of the week, until September 11.  This may be when Vueling intends to discontinue the seasonal route, but that is unconfirmed.  Results returned by the airline ticket booking engine at www.kayak.com/flights show that Vueling has a codeshare agreement with the Spanish airline Iberia along this route.  The same source shows that the route will be operated with the Airbus A320-100 and A320-200.

Also, the Jakarta-based carrier Lion Air has commenced service between its hub at Soekarno-Hatta International Airport (IATA: CGK; ICAO: WIII) and Kuala Lumpur International Airport (IATA: KUL; ICAO: WMKK) near the Malaysian capital.

Lion Air will face a great deal of competition along this route, as no less than five other airlines fly it daily, according to Kayak.  Notwithstanding that, presumably each of Lion Air's flights is filled to capacity, as the company's English motto is "We make people fly."  Our editors are curious as to the ways in which this motto is implemented in the day-to-day activities of the airline.

In any case, Alitalia is indefinitely shelving its Turin-Berlin (Tegel) route, effective tomorrow.  Also, the British budget carrier EasyJet is discontinuing its Berlin (Schönefeld)-Gothenburg route tomorrow as well.

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Friday
Jan212011

British Airways and Iberia unite under one holding company

British Airways (BA) and Spain's largest airline Iberia officially merged under the holding company International Consolidated Airlines Group earlier today.  This move creates the second-largest European-based airline by some measures, and the third-largest by others.  Germany's Lufthansa was the continent's largest airline by most major measures in 2009.

The merger will give British Airways greater access to South America than it had previously, and Iberia will enjoy greater access to North America than it had previous to the merger.

The final shares of British Airways stock were traded on the London Stock Exchange late yesterday, according to The Guardian, a U.K.-based newspaper.  The merger is valued at a little more than 6 billion GBP (7.09 billion EUR, 9.59 billion USD).  Former British Airways CEO Willie Walsh will assume the same post at the new company.

related stories

BA and Iberia respective shareholders both approve merger (November 29, 2010)

British Airways resolves Iberia merger concern over deficit (September 23, 2010)

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original stories

British Airways, Iberia merger takes effect (Yahoo Finance)

British Airways trades for last time ahead of Iberia merger (The Guardian)

Monday
Nov292010

BA and Iberia respective shareholders both approve merger

Earlier today, shareholders in British Airways and Iberia Airlines voted "overwhelmingly" in favor of a proposed merger between the two European carriers which would create the third-largest airline in Europe.  Among European-based carriers only Lufthansa and Air France-KLM would be larger.  The resulting business entity will be called International Consolidated Airlines Group.  The London-based Daily Telegraph reported that Willie Walsh, CEO of British Airways, would like to consolidate additional airlines within this new holding company in the future, and that this is the reason for the "bland" holding company name.

The merger is worth an estimated 5.7 billion GBP (6.76 billion EUR; 8.89 billion USD) and will be executed entirely with company stock.  According to the New York-based Wall Street Journal, shareholders of British Airways will receive a share of International Consolidated Airlines Group for every share of British Airways they own, and shareholders of Iberia Airlines will get 1.0205 shares of the new holding company for every share of Iberia.  Iberia reported on its website that five years from now, the new multinational corporation expects the airlines' combined efforts to produce 400 million EUR (337 million GBP; 526 million USD) annually in excess of the sum of the two airlines' individual expected revenues.

Both British Airways and Iberia are members of the Oneworld airline alliance.

Operational headquarters of the airline resulting from this merger will be in London, and corporate headquarters will be in Madrid.  Each city is the capital of its respective country.  Despite the move, the two merging airlines "will keep their separate brands and identities" according to the Wall Street Journal today.  The merger is scheduled to be officially complete on January 21 next year.  The Daily Telegraph noted solemnly that British Airways' individual ticker symbol would no longer be visible on the London Stock Exchange, as of January 24 next year.

Mr. Walsh, and Iberia CEO Antonio Vázquez Romero will hold a press conference at Madrid's Hotel Intercontinental on November 30, at 10:00 in the morning local time, according to Iberia's press release.

British Airways is the highest-profile airline headquartered in the United Kingdom, and was founded in 1974, from the merger of the British Overseas Airways Corporation and British European Airways.  It is based in the borough of Hillingdon in London.  Its largest hub is Heathrow International Airport (IATA: LHR; ICAO: EGLL).  It operates 239 aircraft (Airbus and Boeing) to destinations on all six permanently inhabited continents.  Company stock is currently traded on the London Stock Exchange, although the "BA" ticker symbol will be replaced by the ticker symbol for International Consolidated Airlines Group next January 24.

Iberia Airlines was founded in 1927, and is the largest carrier based in Spain, by number of passengers carried.  It is headquartered in Madrid, and maintains hubs at Barajas Airport in the Spanish capital (IATA: MAD; ICAO: LEMD), and also at Barcelona Airport in the northeast of the country (IATA: BCN; ICAO: LEBL).  It operates an all-Airbus fleet of 116 aircraft to 99 destinations in Europe, Asia, Africa, North America, and South America.

related stories

British Airways resolves Iberia merger concern over deficit (September 23, 2010)

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original stories

BA, Iberia holders approve merger (Yahoo Finance)

Iberia and British Airways shareholders approve merger (Iberia Airlines)

BA, Iberia Shareholders Back Merger (Wall Street Journal)

British Airways shareholder vote to trigger end of BA name on stock market screens (Daily Telegraph)

Thursday
Sep232010

British Airways resolves Iberia merger concern over deficit

Earlier today the largest airline based in Spain, Iberia Airlines, cleared another obstacle to its anticipated merger with British Airways (BA).  Iberia announced that it was happy with British Airways' plan for dealing with its 3.7 billion GBP pension deficit (4.36 billion EUR; 5.8 billion USD).  The United Kingdom's highest-profile airline showed Iberia how it plans to put 330 million GBP (388.55 million EUR; 517.67 million USD) annually into pension funds for the next sixteen years.

The anticipated merger would unite the two airlines under the same holding company, called International Airlines Group.  However, each of the two airlines would retain its long-established logos and branding schemes.  British Airways CEO Willie Walsh would become CEO of International Airlines Group, while Iberia CEO Antonio Vasquez Romero would become Chairman of the Board.  The holding company's operational headquarters would be in London, and its corporate headquarters would be in Madrid.  Iberia claims the merger will allow visitors from Europe to obtain inexpensive airfare to Central America.  The website www.beatthebrochure.com reports that the merger will make available "a vast array of services offering cheap flights" between destinations all over the globe.

British Airways was formed in 1974 with the merger of the British Overseas Airways Corporation and British European Airways.  It is the United Kingdom’s highest-profile airline, and is headquartered very near its main hub Heathrow Airport (IATA: LHR; ICAO: EGLL) in the London borough of Hillingdon.  British Airways flies a fleet of 237 aircraft to destinations on all six permanently inhabited continents, and also maintains a hub at Gatwick Airport (IATA: LGW; ICAO: EGKK) southeast of London.

Iberia Airlines is the Spanish flag carrier, and was founded in 1927.  It is based in the national capital of Madrid.  Iberia maintains its largest hub at Barajas Airport in Madrid (IATA: MAD; ICAO: LEMD).  Spain's second-largest city Barcelona is a focus city for the airline.  Iberia flies 116 aircraft to 120 destinations in Europe, Asia, Africa, North America, and South America.

related stories

DOT grants anti-trust immunity to BA-Iberia-AA alliance (July 22, 2010)

BA-Iberia merger approved by the EU (July 14, 2010)

original story (www.beatthebrochure.com)

Friday
Jul302010

AA management and pilots debate refueling issues

Management at American Airlines are seeking to require the airline's pilots to fill out additional paperwork, justifying in detail any future request for additional fuel during the scheduled refueling of an aircraft prior to takeoff.  Some pilots at the airline believe this amounts to intimidation, and that because they (the pilots) are ultimately responsible for the safe operation of the aircraft, there should never be any hesitation from decision makers, following a pilot's request for more fuel.

American Airlines management countered that "there's no truth" to the rumor that a pilot with the Dallas, Texas-based carrier will be reprimanded simply for asking for more fuel to operate a certain flight.  The airline claimed that the additional paperwork simply allows the airline to make better-informed decisions about how much fuel to allocate (by default) to each flight, based on factors such as distance, load factor, wind direction, air temperature, and other weather-related factors.

American Airlines was formed in New York in 1930, when dozens of small airlines merged to form American Airways.  American Airlines relocated from New York, New York, to Dallas, Texas, in 1979.  Its largest hub is at Dallas-Fort Worth International Airport (IATA: DFW; ICAO: KDFW).  American Airlines recently received authorization from the Department of Transportation (DOT) to enter into a three-way, trans-Atlantic focused partnership with the flag carrier of Spain, Iberia Airlines; and also with the United Kingdom's highest-profile airline, British Airways.

original story (www.portfolio.com)