Vueling and Clickair have merged after three months of talks to form Spain's third largest airline. The new airline will adopt the name Vueling although it is a merger with equal shares and the new company formed will be independent of its predecessors. The main shareholder in the new company will be Iberia Airlines with about 40 per cent of the shares. The merger has come about due to the strong competition and excessive offer in the sector and the recent rise in fuel prices. In the first quarter of 2008 Vueling made a loss of 32.4 million euros despite a 32 per cent increase in passengers.
The new airline will have 45 planes and around 300 flights on 112 routes and will be based in Barcelona. The closest airport they currently fly from is Alicante, but they say they have plans to extend operations in the future.