Spanair stops flying after Qatar deal falls through

[flee 5]

Star Alliance airline Spanair has announced that it is halting all operations today, with the last flight expected to arrive at its base at 22:00 after talks with Qatar Airways over a stakeholding and capital injections collapsed.

 

Shortly after the regional government made clear that the airline could expect no further government-backed loans, the Barcelona-based Spanair started to cancel flights during this afternoon. Only flights returning from remote destinations to its Barcelona and Madrid bases still took off.

 

Spain's public airport operator AENA has prepared special areas at Madrid's Terminal 2 and Barcelona's Terminal 1 to attend stranded passengers, which according to an Aena source may mount to "several thousands" only at these two airports. AENA is asking passengers with Spanair tickets not to go to the airport until they have a confirmed seat on another airline.

 

Spanair's local competitors Iberia, Vueling and Air Europa have announced contingency plans to accommodate Spanair passengers.

 

Iberia has announced a flat fare of $79.15 (€60) for Spanair ticket holders on Spanish mainland and Balearic routes, $118.73 for routes to the Canary Islands and $131.92 for any European route.

Additionally, the Oneworld carrier will be operating in coordination with AENA and the Spanish government additional frequencies on routes where Spanair had high market share, namely from Madrid to Barcelona, Bilbao, La Coruna, as well as to the Balearic and the Canary Archipelagos.

SAS, former owner and current minority shareholder of Spanair has released a statement under which it explains the potential impact of Spanair's bankruptcy, saying that it had already written down to 0 the value of its 10.9% shareholding. However, SAS has decided to write down outstanding debts and receivables of around $217.67 million and reserve $36.94 in guarantees and costs due to the bankruptcy.

 

Spanair was acquired about three years ago by a Catalonian consortium composed mainly by public institutions wanting to convert the airport at El Prat into an international hub with the help of Spanair, which it relocated from Palma de Mallorca to Barcelona for that purpose.

 

In recent days, rumours about Spanair's bankruptcy gained speed as news popped up that Spanair's president and former president of the Barcelona Football Club Ferran Soriano had already accepted to preside the British Manchester City football club, something Soriano denied only halfheartedly by saying that "he would not leave Spanair".

 

Spanair's demise can eventually hugely benefit its principal Barcelona based rival, Iberia's low cost affiliate Vueling, also an Airbus A320 operator. Reportedly some Vueling pilots have been taking already courses during the last months to be certified for flying aircraft equipped with the same engines of the Spanair fleet, which might suggest Vueling's preparedness to take over quickly some of Spanair's capacity and routes.

 

Spanair's domestic market share was 22%, but they did not operate to many destinations, so the actual share on their routes was higher.

 

Source: http://www.flightglobal.com/news/articles/spanair-stops-flying-after-qatar-deal-falls-through-367505/

[Y. J. Foo 0]

It must be particularly hard for the airline's employees to lose their jobs as Spain reached 15-year high unemployment rate. Plus seems *A has lost a member and may be losing another two.

[Josh T 0]

It must be particularly hard for the airline's employees to lose their jobs as Spain reached 15-year high unemployment rate. Plus seems *A has lost a member and may be losing another two.

Who else are they potentially losing?

[JuliusWong 0]

Star Alliance will lose or had lost bmi (gobbled by IAG Group), TAM (merged with LAN Group to form LATAM Group) and Spanair this year. Biggest loss in a year... but Avianca-TACA Gropo, Copa Airlines and Shenzhen Airlines are hopping onboard this year.

 

My thoughts are with the employees and immediate families. Spanish economy is really screwed, 23.8% of unemployment rate!!!

[Pieter C. 5]

More airlines in Europe will go down the drain this year, as the economy is really depressed and the Euro is loosing ground; this is #3 already after AirAlps in Italy and Cirrus in Germany !!!

 

LOT Polish airlines is in talks with Turkish Airlines, struggling to survive too...

[flee 5]

Unfortunately the economic climate in EU and the rest of Europe is not good for 2012. It would appear that AirAsia X pulled out just in time to minimise its exposure and losses to this deterioration in business opportunities.

 

With airport charges and taxes going skywards, people can no longer afford to make so many trips. The big airlines have already taken measures to protect themselves while the smaller ones can no longer afford to fly. I think the killer is the high oil prices and we still don't know when they will moderate!

 

It would appear that the other Spanish airlines will benefit from Spanair's collapse. This is the only positive to come out of it and, perhaps, they can absorb some of Spanair's employees.

[Kris Kim 0]

Looks like now *A has lost it's spanish carrier, OW & ST will be the dominant alliances in Spain. Let's hope things improve in Spain and those now jobless find find in other areas in the airlines business.

[Pieter C. 5]

Hungary's Malev runs out of cash too...let's see if they'll operate after Jan31,2012 ...

 

Source: Airwise News via Reuters.

[JuliusWong 0]

Blue Panorama and Wind Jet are merging with Alitalia, giving Alitalia Group more than 60% market share of Italy's market.

 

Also note that Alitalia is now operating under five different AOC: Alitalia, Alitalia CityLiner, Air One Smart Carrier, Alitalia Express,and Volare Airlines.

 

Hungary's Malev runs out of cash too...let's see if they'll operate after Jan31,2012 ...

 

Source: Airwise News via Reuters.

It would be a matter of days Czech Airlines announces the same thing...