Vueling

[Omnipresent]

Unless I've missed something, Vueling management said they could not recommend the offer as it was too low, but the decision to accept the offer is one for the shareholders rather than management.

Now IAG has managed to largely achieve what it wanted with restructuring Iberia, I'm not sure if this also changes things. I think they'll still want to add Vueling to the IAG portfolio but there is probably less urgency on IAG's part.

[StoneyBridge Radar]

So now IAG cannot buy out Vueling 100%, does this leave the 737-400 replacement at Gatwick in some doubt?

I think you're jumping the gun here Buster old bean.

Vueling management see Vueling's future (and their golden handshakes, no doubt) with IAG.

The sticking point has been the fact speculators have artificially elevated Vueling's share price so that its current market cap makes IAG's offer seem somewhat lacking.

The deal will happen. The question is whether IAG will bite the bullet and pay over the odds (which I doubt, considering the extra cost of the revised Iberia streamlining IAG now have to fund) or whether they will wait for the short speculators to lose patience, move on and allow the stock price to return to more realistic levels.

Still not sure why people are connecting Vueling with the Gatwick fleet. Seems only on here and a.net does such talk have any credence; certainly not amongst BA bods...

[yotty]

Stoney, I suspect the inference is that why would BA stump up for a new shiny fleet of a/c for LGW if there were plans for Vueling to operate the LGW hub for BA?

[Buster the Bear]

It was the rumour I was told from a normally reliable source and certainly not made up by me, nor did I read it elsewhere. I guess they could always start up a new airline, how about BAby to rival Little Red?

[mathers_wales_uk]

Vueling scoops Value Airline of the Year accolade at the ATW Awards held in Washington D.C.

Vueling, the leading airline at Barcelona-El Prat Airport, was last night heralded Value Airline of the Year at the 39th annual ATW Awards, held in Washington D.C. The awards are organized annually by Air Transport World magazine, a leading monthly title serving the airline and commercial aircraft manufacturing and support industries.

Sourced - Wales Air Forum.

This joins the four awarded by the World Low Cost Airline Congress. (Airline of the year, best business traveller airline, best sales and distributution strategy and best customer loyalty scheme).

Sourced - Wales Air Forum.

[AirGuru]

Could we some sort of small base at CWL next year ? Rumour has it that routes are doing very well. Backed up by the fact they have increased AGP to 4x weekly from Aug-Sep.
Disappointing that IAG want them under their belt, i feel VY are one of a few remaining very well run airlines out there constantly driving profit. The Competition Commission has approved a takeover, now its upto the VY board to decide by the 19th April on a deal that values Vueling at around EUR280 Million

[Jack1985]

Rumour has it

Precisely, just that. It seems to be that all airlines are doing massively well ex-Cardiff but then somehow aren't expanding at Cardiff.

well run airlines out there constantly driving profit.

Fair point but their profit could be a lot higher as could be the load factor which still remains below 80% (77.7% - FY12). Last year though revenue did increase substantially as did profit against FY11 but as per your motion of them launching a base at Cardiff I don't see this happening at least in the short-term, they're current model of building a massive connection hub ex-Barcelona seems to be working and making them money they'll keep pursuing this. Also the fact that the majority of the catchment area in the SW uses Bristol is probably a major stumbling block to any carrier looking to duplicate routes which currently operate out of Bristol, this would only see airlines operating at lower yields i.e. bmibaby particularly with regards routes which aren't leisure focused.

[mathers_wales_uk]

It will be interesting how things develop especially as the Spanish regulator has now approved IAG's Vueling offer. Sourced - Wales Air Forum

Also the fact that the majority of the catchment area in the SW uses Bristol is probably a major stumbling block to any carrier looking to duplicate routes which currently operate out of Bristol, this would only see airlines operating at lower yields i.e. bmibaby particularly with regards routes which aren't leisure focused.

I see where your coming from here however Vueling prices are already competitive compared to EasyJet prices from Bristol and of course nobody knows what deal Vueling are currently having at Cardiff.

Many of the residents of South Wales fly from Bristol & Birmingham as the low cost flights they require are just simply not available at Cardiff Airport. As the Vueling brand continues to be known throughout South Wales the demand will surely increase but obviously only to a certain degree.

Vueling are happy with the support they are receiving from Cardiff Airport especially with the advertising campaign throughout South Wales paid for by the airport.

Vueling of course do have a connection hub at Barcelona and of course it is an important part of their product however they do offer a number of point to point destinations which can also be lucrative for them.

Of course any base will not be huge and possible single aircraft only during the summer as I believe there are not sufficient routes to operate a base during the winter at the present time.

[mathers_wales_uk]

Vueling accpets takeover bid from IAG so it will be interesting to see what happens now.

[Drink Up Thee Cider]

Intersting is dead right, Mather, but I'm not sure its CWL........

Apparently, Vueling are showing interest in buying one of the bigger slot portfolios at LGW. With their cost base, EZY might actually be given a run for their money at LGW. My understanding is that Vueling's top man was in Dublin yesterday to discuss.

[Hangar6]

Dublin Seminar

Well the visit was more to catch up with WW who along with a wide variety of airline heads was at conference , but we could continue the rumours ....

WW and Mol met to discuss T/a options .


Some good articles on the seminar on google

[Cyrano]

Originally Posted by Drink Up Thee Cider

My understanding is that Vueling's top man was in Dublin yesterday to discuss.

He was in Dublin to speak at an airline conference (something he does from time to time ).

[Drink Up Thee Cider]

He was in Dublin to speak at an airline conference (something he does from time to time ).

Conferences are useful for catching up with folk, eh?

[Omnipresent]

Vueling may have plans for LGW but I can't see BA pulling out of LGW short-haul entirely.

Vueling is a success in its own right and is a leverage for IAG to pressure BA and IB to make short-haul profitable but I don't foresee Vueling simply replacing BA short-haul at LGW.

[canberra97]

LGW

All this talk of Vueling supposedly taking over the short haul operation of BA out of LGW is stupid talk as I for one can not see it happening maybe on the Spanish routes but that's about it and the BA brand means alot something that Vueling name doe's not to the UK consumer!

Am sure Skipness would disagree though as he hates anything regarding BA at LGW!

[mathers_wales_uk]

Is it daft to suggest that at Gatwick British Airways may need to move to a more closer Vueling type of operation?

My reason for suggesting this is that in a recent survey by international aviation group CAPA where Vueling labour costs were second best at 8.6pc. Also Vueling was best at the amount of revenue generated for each employee on the books where it stands at €629,566.

Vueling offers a brilliant award winning service as I have mentioned in the past and it's on-board product is excellent and due to improve with proposals of wi-fi being introduced on board. They are still a very young airline however are growing and certainly their UK brand will only improve year on year as they expand.

To compete at Gatwick what would be better for British Airways to continue as they are with fleet renewal, move to a Vueling style operation by competing with the low cost airline while offering a superior product or simply move Vueling in and codeshare on all their UK flights similar to what Iberia do on their Vueling flights to/from Spain?

Some may think i'm off my rocker however there is some logic there regardless of how little it may be.

[VickersVicount]

"move to a Vueling style operation by competing with the low cost airline while offering a superior product"
There lies the problem. With current BA contracts there would need to be significant changes to become a low cost model. Fragmented arrangements such as a low cost model at LGW and a different offering at LHR in the long term would never work.

[irishcc]

Maybe we will just see better schedules and aircraft usage if both BA and Vueling coordinate/cooperate with certain routes.

BA on the LGW AGP route seems to be doing well, maybe we may see Vueling add an early morning AGP LGW etc.

[Aksai Oiler]

Some of us using the BA AGP-LGW route for business would prefer to see one rotation from LHR so we can connect; even 4 days a week would be fine.

[Skipness One Echo]

Am sure Skipness would disagree though as he hates anything regarding BA at LGW!

If you read more you should apologise for that. I loved BA at Gatters. The staff were friendlier than LHR and until T5 the facilities superior. However in the past two decades, since the Dan Air sale, I think I'm right in saying they haven't turned a profit once on short haul. This was accepted as LGW was built up as a second hub, however once this concept failed, there's nowhere left to hide. They've cut costs further so that all franchises and subtypes were removed, choice of business destinations has collapsed and focus was changed to sun routes against EZY. Now that's fine if coupled with outsourcing all ramp staff the operation makes money, we shall see. My main gripe is that a good operation is a shell of it's former self. One can taxi into LGW without clapping eyes on a single BA aircraft some nights. There's nowhere left to go now, the last gasp was the promise of NEW aircraft if staff accepeted yet another round of cuts. They got ex BMI A319s that LHR business customers found too tight in the legroom dept up front. I'm not interested in dreamers and what people say, I've had two decades of watching what they DO.

Great airport, great staff, good airline, no love at BA for LGW short haul.

As to Vueling being unknown? Franchise them as BAExpress, bookable on ba.com a la GO.