Spanish budget carriers move closer to full merger

Saturday, 02 Mar, 2009 0

Spanish low fare carriers clickair and Vueling have begun cross-selling seats online prior to a planned merger this summer.

The move is the first step toward a joint marketing initiative of the two merging carriers.

The remaining regulatory and legal steps are expected to be finalised by late June or early July following EU approval of the merger in January.

The cross-selling agreement gives users of both airlines access to more than 10 million seats on a combined 89 routes and 45 destinations.

Clickair’s bases in Barcelona, Bilbao, Malaga, Seville and Valencia will be complemented by Vueling’s.

The new arrangement will also allow Clickair passengers to access the Vueling’s routes from Madrid. The combined timetables went live on www.clickair.com and www.vueling.com last Friday.

The combined carrier will have a codeshare agreement with Iberia.

Flights operated by the new Vueling, in which Iberia – currently Clickair’s strategic shareholder—will have a majority interest, will codeshare with Iberia, as Clickair has since its creation in 2006.

Since the airline’s inception all Clickair flights have been available via the web or through global distribution systems, via the Iberia codeshare.

GDS sales at clickair account for nearly 40% of all seats sold, claimed to be one of the highest proportions among low fare airlines worldwide.

Clickair Marketing Director Jaime Lloret said: “Even though both companies are moving towards a full merger, the cross-selling agreement is still a commercial alliance.

“Both companies are still formally separate entities until the merger is formally completed.”

Alex Cruz, CEO of Clickair will stay in the same position in the merged company.

Former Spanish foreign minister Josep Piqué, current chairman of Vueling, will be the non-executive chairman of the new company.

by Phil Davies

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Phil Davies

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