By Daniel Solon in Barcelona
The coming winter season promises a tectonic plate shift in the Spanish domestic market as new entrants shake up the established order.
Catair, the Barcelona-based joint venture low-cost carrier in which Iberia and powerful Spanish tour operator Iberostar each hold 20% shares with three other partners, is scheduled to begin flying on 29 October, the start of the winter timetable. Iberia may concurrently increase its own frequencies by 12% at Madrid and 13% at Barcelona.
At the same time, Madrid Barajas Airport will grow from 78 to 90 operations per hour, while Barcelona will increase slots from 58 to 61. In 2008, Barcelona will step up to 90 slots per hour, with the new South Terminal raising its annual capacity to 55 million passengers. Iberia is the dominant domestic carrier at both airports, with all others, except Vueling, struggling to retain market share.
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| New entrants are arriving at Madrid Barajas Airport |
Catair will begin service with a fleet of three leased Airbus A320s and an annual allocation of 2,499 slots, equivalent to 14 operations daily. It will soon confirm whether all those slots will be flown. Catair has a target of 400,000 passengers in November and December. Early destinations will include Amsterdam, Dublin, Geneva and Lisbon. Catair plans to invest €120 million ($150 million) through 2009 and expects to carry five million customers in 2007 on a fleet growing to 14 aircraft. Both numbers are to double again in 2008.
Another new entrant, Barcelona-based Vueling, plans further growth. Chairman Jose Miguel Abad said the carrier now has 14 A320s in service, with 98 daily flights serving 34 routes. Vueling carried 1.4 million passengers in the first six months of 2006 and produced revenues of €130 million. It expects to report profits for this year on revenues targeted at €260 million, said Abad. The fleet will grow to 16 by year end, supported by 600 employees.
Vueling styles itself as the "new generation" airline rather than a low-cost carrier. Its slot allocations for this winter offer an increase in operations of 64% at Barcelona and 384% from a very low base at Madrid. Vueling plans to offer five daily return flights between these two cities, a modest market presence but enough to offer a range of day-return alternatives for business travellers. "Vueling could make an Initial Public Offering on the stock market in 12 to 18 months - mid-2007 to early 2008 - but any IPO will absolutely depend on overall stock market and economic conditions, as well as on Vueling's own performance," said Abad.
Elsewhere, Air Europa, completing 20 years of service in 2006, has not yet declared its hand in the domestic market dogfight. However, Spanair, the SAS Spanish unit, has announced its strategic plan through 2010. Chairman Gonzalo Pascual is aiming for a 60% increase to 5.5 million passengers per year carried on 40 routes from Barcelona, making the airport a Spanair hub. He plans to offer fare cuts as deep as 50% in response to the low-cost challenge. This winter Spanair will gain 36% more slots at Barcelona and 30% more in Madrid. Spanair aims to increase its share of the Spanish market from 22% now to 27% in 2010. ■
Source: Flight International
