EMCC European Monitoring Centre on Change

Vueling

Company/Organisation:
Vueling

Geographic Location

Country: Spain
Region: Barcelona; Cataluña; Este
Location of affected unit(s): El Prat de Llobregat

Company

Sector: Transportation / storage
Transportation and storage
51 - Air transport
Number Employed: 1500
Group: Iberia

Employment Effects

Announcement Date: 05-05-2009
Planned Job Reductions min: 200
Planned Job Reductions max: 200
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2009
Foreseen End Date: 31-12-2009
Direct Dismissals: 200

Additional Information

The merger of the airline companies Vueling and Clickair will represent the loss of 200 works posts, given that Iberia, major shareholder of the carrier resulting from the liaison with 45% of the shares, will assume the handling services and fleet maintenance services that to date had been carried out by Vueling's own personnel.
This morning the company's Chairman, Josep Piqué, explained that "they will be trying to incorporate as many Vueling employees as possible into Iberia's handling services" so that adjustment will be less traumatic. The merged carrier that saw the light with 1500 employees will reduce its staff to 1300.
Notwithstanding, this reduction in work posts must be added to those that have been taking place in parallel fashion in both Vueling and Clickair during the past year, prior to signing of the merger.
The alliance between the two companies is to be approved today by the general shareholders' boards, as is likewise the case with composition of the new Board of Administration, which continues to be presided over by Piqué. Vueling operates 35 aircrafts covering 90 routes and expects to invoice about 800 million Euros this year "with good profitability ratios", in words of Piqué.