Vueling and Clickair to merge
The Wall Street Journal reports today that the two low cost airlines, Vueling and Clickair has decided to merge. They will still fly under the Vueling brand.
Clickair was a spin off from Iberia only a few years ago, but the raising fuel prices seems to have made this merger neccesary.
For pilgrim traveling in and out of Santiago de Compostela the news could be better, since the major routes from Santiago (to Madrid and Barcelona) now is served by fewer airlines and this often means higher prices.
The Wall Street Journal says:
The merger, which will require clearance from antitrust regulators, will give Spain’s flag carrier, Iberia Líneas Aéreas de Espana SA, a tighter grasp on the country’s low-cost segment, which has been besieged by discount carriers Ryanair Holding PLC and easyJet PLC.
Iberia is expected to emerge as the largest shareholder of the new, combined company, people close to the situation say. A tie-up between the two discount carriers would also allow Iberia to continue focusing on its most profitable long-haul trans-Atlantic flights amid a squeeze in the sector, as soaring fuel costs erode profits.
There is also a topic on this in the camino de Santiago forum.