Fusion of Clickair with Vueling

Clickair approves fusion with Vueling to create the first Spanish low cost airline

Yesterday the board of directors of Clickair gave the go ahead to the fusion of their company with Vueling whose board of directors also approved the project last week. The new company is forecast to begin operating in June this year with 39 routes 23 of which will be to international destinations. The current chairman of Vueling, Josep Piqué, will continue in his position and the chairman of Clickair, Alex Cruz, will be the new company’s first chief executive.

Iberia has confirmed that it will hold onto its 20% ownership of Clickair and that this could rise to 45%. Nefinsa will also retain its interests in the new Vueling although only as a minority shareholder. Iberia said that some of the handling and maintenance for the new company will be carried out by Iberia or its associates.

Following approval of the fusion by the shareholders of both Vueling and Clickair the operation to absorb Clickair into Vueling will begin and Vueling will acquire all the rights and obligations previously held by Clickair.

The type of exchange proposed for the fusion is 2.98 shares of a euro for Vueling for every share of 10 euros for Clickair something which needs to be approved by both companies board of directors.

Acquisition of Spanair by Catalan consortium

Catalan businessmen, the Catalan regional government and the town hall of Barcelona to buy Spanair

A group of Catalan businessmen and women together with the Catalan regional government and the town hall of Barcelona have acquired 80.1% of Spanair, the second largest Spanish airline.

The group of business men and women and institutions which form the la sociedad Iniciatives Empresarials Aeronàutiques reached an agreement with the current owners of Spanair the Scandinavian company SAS before the deadline of 31st January expired.

SAS will continue to own 19.9% of Spanair and will be responsible for Spanair's debts of 500 million euros according to the Catalan association which has confirmed that in the next few weeks a definitive deal will be signed. SAS will also keep control of the operative management of Spanair.

The Aeronautical Association of Business Initiatives includes the following Catalan groups - la sociedad de capital riesgo Catalana d'Iniciatives, Consorci Turisme de Barcelona – which belongs to the town hall, Volcat 2009, Fira de Barcelona, the Catalan regional government, a group of business men and women from the Catalan tourist sector together with business representatives from other parts of Spain.

According to information on its web page Catalana d'Iniciatives consists of a group of buisnesses including La Caixa, Santander, Gas Natural, Telefónica, Repsol YPF, Ferrovial, CAM, Endesa and the town hall of Barcelona.

The acquisition of Spanair implies expanding the group's capital by 100 million euros which will be taken on by new partners.

The business plan behind the acquisition of Spanair is based on promoting Barcelona as a platform for future growth, taking advantage of the new T1 terminal, the cancellation of non profitable routes and a reduction of costs by improving operations and supply.

According to the new owners of Spaniar the airline will strengthen routes where there is strong demand from business passengers on weekdays and routes where there is strong demand from passengers who travel for leisure at the weekend and during the holiday season.

It also hopes that the routes between Barcelona-Madrid-Palma de Mallorca are strengthened as well as routes to the Canary Islands.

Over recent months Spanair has made 775 of its workers redundant as a means of reducing its operative base.