Spanair runs out of cash...

[WestCoast]

This airline has been mentioned in quite a few threads, so I thought the news of its demise may be of interest.

From The Wall Street Journal..

Spanair Suspends Operations After Qatar Talks Collapse

MADRID (Dow Jones)--Spain's government said Friday THAT airline Spanair is suspending operations, after it failed to find a buyer.

Earlier Friday, Qatar Airways had walked away from talks to take over the money-losing airline after months of negotiations.

The government of Spain's Catalonia region is Spanair's main shareholder, while Spanair's former owner, Scandinavian airline SAS AB (SAS.SK), still owns a 11.9% stake.

The Catalan government has injected millions of euros into Spanair in a bid to keep the Barcelona-based airline, with 2,000 employees, afloat as part of an effort to develop Barcelona's El Prat Airport as a regional hub. However, it decided months ago that it couldn't keep supporting the company at a time when the government itself is facing serious financial difficulties.

So, basically, the regional Catalonia government will no longer financially back the airline and no buyers are interested in an airline in such a poor financial shape.

Let's hope the staff find employment soon, which may be difficult in the harsh economic conditions in Spain evident with a 23% unemployment rate.

 

[Schnellzug]

It seems to have a bit of a reputation as a bit of an "adventurous" experience at times. ... Perhaps they weren't helped in their endeavours to establish Barcelona as a regional hub by it being called El Prat. :-/

 

[WestCoast]

It seems to have a bit of a reputation as a bit of an "adventurous" experience at times. ... Perhaps they weren't helped in their endeavours to establish Barcelona as a regional hub by it being called El Prat. :-/

Yes, they didn't have a great reputation and I could see where it came from after flying them twice.

Spanair at one time carried thousands of British holidaymakers each year on charter flights to Spain and its islands on behalf of large tour operators like Thomson e.t.c.

 

[trentside]

Although my only experience with them was largely positive, from other reports I've read their reputation did leave a lot to be desired. I wouldn't imagine things weren't helped by the fatal accident at Madrid in 2008.

From an enthusiasts point of view, I'll be sad to see more MD80s leave the skies.

 

[WestCoast]

From an enthusiasts point of view, I'll be sad to see more MD80s leave the skies.

Indeed, they are becoming rare in Europe, although there are still huge fleets of them in the US.

 

[trentside]

Indeed, they are becoming rare in Europe, although there are still huge fleets of them in the US.

Yes, I think it's pretty much only SAS left now?

Their general fuel inefficiency probably didn't help Spanair in the long term.

 

[WestCoast]

Yes, I think it's pretty much only SAS left now

I can think of SAS and Alitalia as the European carriers with significant MD80 series fleets still in operation. There are a few smaller airlines as well (like Dubrovnik Airlines and JetTranAir), but they don't have large fleets.

Although, whether there is further work for the Spanair fleet I don't know.

 

[starrymarkb]

I had a quite pleasant flight on one of the MD80s back in 1999. Though reading recent trip reports on Airliners.net shows that they have changed for the worse and their A320s sound horrific!

 

[WestCoast]

I had a quite pleasant flight on one of the MD80s back in 1999. Though reading recent trip reports on Airliners.net shows that they have changed for the worse and their A320s sound horrific!

The MD fleet sounded fine, it was the Airbuses that were in 'sardine' configuration.

Some of the Spanair reports on Airliners.net by a certain Finnish member are hilarious.

 

[starrymarkb]

The MD fleet sounded fine, it was the Airbuses that were in 'sardine' configuration.

Some of the Spanair reports on Airliners.net by a certain Finnish member are hilarious.

Flyingfinn? - I've been reading his tales

 

[WestCoast]

Flyingfinn? - I've been reading his tales

Yes, they are rather funny!

 

[kylemore]

Only flew with them once in 2000 from Edinburgh to Gran Canaria, going out was horrible - late - heating turned up to get us to sleep etc (night flight), coming back was ok though, although that may have been due to me having enough of Playa des Ingles after 2 weeks! Never been back.

 

[WestCoast]

Only flew with them once in 2000 from Edinburgh to Gran Canaria, going out was horrible - late - heating turned up to get us to sleep etc (night flight), coming back was ok though, although that may have been due to me having enough of Playa des Ingles after 2 weeks! Never been back.

I'd be suspicious of a place called 'the Englishman's beach'.

Spanair have a huge operation to and from the Canaries, but it was mainly scheduled flights from mainland Spain in the latter years.

 

[starrymarkb]

Yes, they are rather funny!

I've considered trying something similar but a lot of airlines (BA/IB/BE) only offer business class singles (it seems - book a return and there is loads of room in economy)

 

[WestCoast]

I've considered trying something similar but a lot of airlines (BA/IB/BE) only offer business class singles (it seems - book a return and there is loads of room in economy)

BA and BE only do business class singles, are you sure about that on the European routes? I know BE often price one direction dearer than the other, but I've never seen them not quote an economy fare.

I've bought single BA fares from Manchester to Gatwick for £39.

 

[starrymarkb]

They did on the routes I tried (Heathrow to Madrid - was going to try and claim the IB A346 that is working LHR-MAD a couple of days a week)

 

[WestCoast]

They did on the routes I tried (Heathrow to Madrid - was going to try and claim the IB A346 that is working LHR-MAD a couple of days a week)

Ah, I see. I'd check what the screenscrapers Kayak and Skyscanner quote you. I did see an interesting itinerary involving an IB A346 out of Heathrow and a BA CityFlyer E190 into London City.

London - Madrid is an extremely competitive route anyway, Spanair pulled out years ago, there's easyJet, Ryanair and Air Europa from Gatwick competing with BA and Iberia from Heathrow/London City (which are effectively the same company now).

 

[trentside]

If you're interested, here's my one and only Airliners trip report involving my flight with Spanair.

I read the reports section there quite regularly, and was intending to write a second report - though I took the trip, I never got round to it and the details have gone from my memory now sadly. I don't really have the cash for anymore trips at the moment.

I've found some very reasonable one way fares with BA from various european destinations. Sometimes, when you factor in the various charges they can be competitive with low-cost carriers for some legs.

 

[northwichcat]

BBC has only just caught up: http://www.bbc.co.uk/news/business-16787761

 

[starrymarkb]

BBC has only just caught up: http://www.bbc.co.uk/news/business-16787761

Yes and no - they reported them ceasing operations during Friday night on Saturday. Today they have officially declared bankruptcy

 

[trentside]

I notice that Ryaniar is looking for opportunities to expand its business on the back of Spanair's bankruptcy. They've launched a Spanair 'rescue fare' of 49 euros, as they've done with previous airline collapses or base closures.

 

[WestCoast]

I notice that Ryaniar is looking for opportunities to expand its business on the back of Spanair's bankruptcy. They've launched a Spanair 'rescue fare' of 49 euros, as they've done with previous airline collapses or base closures.

The Ryanair 'rescue fare' is completely standard procedure. Ryanair recently expanded their operations at El Prat (after having previously only served Girona and Reus) and seem to be gaining market share rapidly on routes to/from Spain and on the Spanish domestic routes within the mainland and to the Islands. In addition, Barcelona was becoming quite crowded in terms of short-haul operators before Spanair collapsed with Vueling, Ryanair and easyJet also having a significant presence.

 

[WatcherZero]

I notice that Ryaniar is looking for opportunities to expand its business on the back of Spanair's bankruptcy. They've launched a Spanair 'rescue fare' of 49 euros, as they've done with previous airline collapses or base closures.

Their practises can be best seen from their recently published results, increased revenue from increasing fares through supplements and at the same time claiming their lowering them.

 

[trentside]

The Ryanair 'rescue fare' is completely standard procedure. Ryanair recently expanded their operations at El Prat (after having previously only served Girona and Reus) and seem to be gaining market share rapidly on routes to/from Spain and on the Spanish domestic routes within the mainland and to the Islands. In addition, Barcelona was becoming quite crowded in terms of short-haul operators before Spanair collapsed with Vueling, Ryanair and easyJet also having a significant presence.

Presumably Ryanair are flying from Terminal 2 at El Prat? It always surprised me that Spanair flew from Terminal 1 - though presumably this was connected to its use by other Star Alliance members?

 

[starrymarkb]

Looks like Malev are about to go the same way

http://www.reuters.com/article/2012/01/30/malev-idUSL5E8CU3FT20120130

 

[WestCoast]

Their practises can be best seen from their recently published results, increased revenue from increasing fares through supplements and at the same time claiming their lowering them.

Costs have certainly been increasing in the industry an no airline in Europe is immune to rising fuel costs (although these seem to have calmed down just recently), but Ryanair has decided to increase surcharges rather than raise base fares. While many of these surcharges are technically optional, circumventing them does require, among other things, ditching checked luggage and paying with whatever credit card is flavour of the month and does not incur a fee. As long as the final price is still lower than the competition, passengers will still fly with them (as they prove each year).
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Presumably Ryanair are flying from Terminal 2 at El Prat? It always surprised me that Spanair flew from Terminal 1 - though presumably this was connected to its use by other Star Alliance members?

Ryanair is in Terminal 2 - they will just go wherever is the cheapest. Terminal 2 became nearly empty until AENA lowered fees to attract low-cost carriers.

Spanair was not strictly a low-cost carrier, so they wanted to be with their Star Alliance partners in the shiny Terminal 1. Makes sense for connections.