Clickair launched services at the beginning of October, further intensifying competition in the fast-growing Spanish low-cost market.
The Barcelona-based carrier, partly owned by Iberia and Air Nostrum, launched with five routes and three Airbus A320s. But armed with €120 million ($150 million) in capital from its five owners, Clickair aims to quickly become a major player in Spain. It is aiming for 17 more routes by March and to fly 70 routes with a fleet of 30 A320s by 2008.
But Clickair will have to overcome stiff competition from Barcelona-based low-cost rival Vueling as well from fast-expanding Spanair. Ryanair also has unveiled a major expansion for its Girona base outside Barcelona and along with easyJet is planning to open a new base in Madrid.
The low-cost competition is forcing Iberia to hand several unprofitable routes and slots at major European airports to Clickair. "We don't want routes that are losing money systematically," says Iberia chairman Fernando Conte, adding Clickair is totally independent.
"There is a specific desire for Iberia and Air Nostrum to treat this as a separate investment," says Clickair chief executive Alex Cruz. "Iberia does not want to influence Clickair."
Cruz calls Clickair a third-generation low-cost carrier, providing low fares and no frills to budget travellers but at the same time offering optional frills to passengers willing to pay a premium. Meals are being sold on board and frequent flyer miles on Iberia can be accrued at an extra cost. Passengers will also be able to pay for priority boarding.
"We want to mix traditional low-fare carriers with standard traditional carriers. At an incremental price we want to give whatever the customer is willing to pay for," Cruz says.
Source: Airline Business
