Vueling Airlines, the first operator to base itself in Barcelona, took to the air in July, with an ambitious target of profitability within six to 12 months.
The carrier started operations with an Airbus A320 from Barcelona and Valencia to Paris Charles de Gaulle and Palma de Mallorca. Brussels and Ibiza were added to the network by mid-July with delivery of a second leased aircraft.
Vueling says it will expand to serve destinations around the western Mediterranean and major cities, such as Amsterdam, Bilbao, Lisbon, Madrid, Milan, Rome and Seville with a target of 12 destinations and revenues of c21 million ($26 million) by year-end. The German and UK markets will be avoided because of heavy low-cost competition.
The airline's chief executive Carlos Mu¤oz describes Vueling as a "new generation" low-cost carrier, modelled on JetBlue Airways. The resemblance is not surprising, since JetBlue president and co-founder David Barger and Tom Kartsotis, president of Fossil Watches, jointly hold 7% of Vueling's shares. The airline is targeting customers among small- and medium-sized businesses.
Private equity partnership Apax Fund holds the largest stake with 39%. Inversiones Hemisferio, a venture capital unit of the Spanish publishing and media house Grupo Planeta, has 30%. Vueling's management accounts for the remaining 23%. Initial capital totals c30 million. Mu¤oz anticipates a public offering at a later stage, which would offer Apax an exit strategy.
The airline starts operations with 120 employees from 12 European countries. The A320s are configured with 180 seats, so seat pitch will be tighter than that of JetBlue, and the fleet will grow to four aircraft by year-end. Two deliveries are firmly scheduled and the aim is to have 20 aircraft in four years. The A320s will be serviced by Lufthansa Technik.
Specific seating will be assigned by internet booking. Fares will be pitched at an average 50% of those charged by Iberia on competitive routes, and primary airports will be served.
DANIEL SOLON BARCELONA
Source: Airline Business
