Has Vueling sold out too soon?

Has Vueling sold out too soon?

How one Spanish carrier is overtaking IAG's current stock

How one Spanish carrier is overtaking IAG's current stock

Vueling
Vueling

Spain will be welcoming the arrival of pasty Brits more than ever this year if the business situation in the country is anything to go by.

While they might regret that welcome when they remember about the clear-up after is another matter, but for now shops, restaurants and attractions will be brimming at the excitement of more people coming through the doors. Well, if not all the Brits have gone all-inclusive…

While the healthy influx of tourists into the country will lift spirits, the financial situation remains tough. We can see that by the strategies that hotel chains and airlines based in the country have done to beat the downfall.

Some, such as hotel group Melia, have simply shifted their focus on consumers from other countries and in doing so encouraged people from those countries to visit its home. It also revamped some tired resorts to boost some of the best loved beach resorts. It’s a clever strategy as it gives a
boost either way.

Others have opted for the takeover route. Although never made public, or even been suggested, I wouldn’t be surprised if IAG had regrets in taking on the struggling Iberia, which continues to dent its profits in nearly three years of losses. And now as if to rub it in, Vueling has become the newborn favourite, already posting a profit and doing the parent proud.

But then Vueling was doing alright on its own. I know nothing of the behind the scenes situation except a struggling Spanish economy, but I can’t help but feel Vueling sold out too soon.

Its rebrand; aircraft orders and continued route expansion had the signs of a cheap funky low-cost airline that was going somewhere. Its shareholders threw back IAG’s advances when its profits and shares came out stronger than expected but instead of sticking out on its own, ran into the arms of IAG once it apologised and spent a little more.

Were the shareholders just seeing the euro signs? Will we see Vueling become more traditional? We’ll have to wait and see.

Gary Marshall
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Gary Marshall
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