Overview - clickair

Spain’s flag carrier Iberia teamed up with four other Spanish companies to launch an LCC in Oct-06 in a bid to compete with rivals such as easyJet, Ryanair and Air Berlin - LCCs that had cornered almost one-third of airline travel to Spain.

From the outset, Iberia insisted that clickair operate as a stand-alone company with independent management, “so as not to contaminate [it] with Iberia’s higher cost structure”. The two airlines have cooperated though – clickair having taken over a number of the Spanish flag carrier's former routes. Iberia has also transferred six Airbus A320 delivery positions to its low-cost subsidiary, which it will receive this year under a sale-and-leaseback deal. clickair plans to begin operating the six A320s in Apr-07, and is considering taking over more of Iberia's A320 positions in the future. clickair has an ambitious expansion plan which envisions a fleet of 30 A320s operating 70 routes by the end of 2008. With the addition of new aircraft in 2007 and 2008, clickair believes that its passenger forecast will grow from 300,000 in 2006 to 4.5 million in 2007 and 10 million in 2008.

It has adopted what CEO Alex Cruz calls a “third-generation” LCC model, providing low fares and no frills to budget travellers, but at the same time offering optional frills to passengers willing to pay a premium. “We want to mix traditional low-fare carriers with what standard traditional carriers have at incremental prices. We want to give whatever the customer is willing to pay for” Cruz says. Meals are sold on board and frequent flyer miles on Iberia can be accrued at an additional cost, while passengers are also able to pay for priority boarding.

Promising “value-added services never before seen in low cost models”, clickair in Jan-07 introduced a raft of “clickservices”: clickhotel, clickcar, clicklounge, clickinsurance, clickbreaks, and clicktransfer. These on-line, real-time add-ons relate automatically to the flight booked by the online customer.

Using its parent airline’s links, clickair also targets business travellers, offering them a premium product. A “clicklounge”, in most airports will provide free newspapers, drinks, snacks, wi-fi connection, television, massages and other amenities. Business travellers also enjoy preferential boarding, and earn Iberia FF points.

While at the other end of the market, clickair allows web booking for groups of up to 25 passengers, a first in the Spanish low lost carrier market.

clickair aims to quickly become a major player in Spain, aiming for 17 more routes by March and to fly 70 routes with a fleet of 30 A320s by 2008. Citing Iberia’s CEO, Angel Mullor, clickair should break even by 2008 and expects to seek a listing for the new company by 2009. It will add 12 new routes to its network in the first quarter of 2007.

clickair will have 23 A320s in service by the end of this year and in 2008, clickair expects to be serving 70 routes to 55 destinations in Spain, the British Isles, Europe and North Africa, carrying nearly 10 million passengers.

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