In the airline ownership game being played in Europe, consumers may end up on the losing end of a pending Vueling and Clickair link-up that is muddying the waters. Iberia, which owns controlling interest in Clickair will become the largest shareholder in the merged airline, suggesting potential competition problems.
The merger of Vueling and Clickair, two Spanish low-cost carriers seems simple from the outside. But, look under the hood and the merger changes dramatically. Iberia, Spain’s flag carrier, owns 80 percent of Clickair and would hold 45 percent of the merged company. This is hardly an arm’s reach agreement.
The only upside to this marriage of airlines is that the Spanish airline competition landscape is very healthy with both Ryanair and EasyJet maintaining bases in the country and with additional airline competition from Spanair and Air Europa. Spain’s new high-speed trains are also a major competitor.
In any case, this seemingly innocent merger of two struggling low-cost carriers may be the proverbial camel’s nose under the tent. Iberia has announced, they are “not going to exercise management of the company.” However, once Iberia gets effective control of the new entity, airfares will probably begin an upward creep.
Wisely, the EU is taking another look with the decision deadline being extended from December 16 to January 9.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
