Spanair

Spanair was a Spanish passenger airline established in December 1986 and launched operations in March 1988. It was created as a joint venture between Scandinavian Airlines and Viajes Marsans, initially concentrating on European charter flights for tour operators. During its expansion phase, the airline added long-haul services to destinations including the United States, Mexico and the Dominican Republic in 1991, and began scheduled domestic flights in March 1994. It later operated a mixture of scheduled services, charter flying and code-share connections across Spain, Europe and selected destinations in West Africa and beyond. The airline’s operating structure changed substantially over time. Its principal hub became Barcelona–El Prat Airport, with additional focus at Madrid–Barajas and Palma de Mallorca. For much of its existence Spanair was associated with the SAS Group, which exercised control before beginning efforts to divest the business. SAS announced a proposed sale in 2007, but the process was not completed in 2008 because a buyer could not be found at a valuation SAS considered acceptable. In January 2009, a Catalan investor group led by the Consorci de Turisme de Barcelona and Catalana d’Initiatives acquired control for a nominal one-euro consideration, while SAS remained a minority shareholder. Spanair joined Star Alliance on 1 May 2003 and remained part of the alliance until its shutdown. Its customer proposition combined regional and domestic scheduled travel with international services and tour-operator charters. Economy passengers on many Western European routes could purchase food and drinks onboard, while its Spanair Star frequent-flyer programme allowed members to redeem points immediately as discounts on later flights. The airline also developed a visible regional identity in Catalonia and maintained a long-running sponsorship relationship with RCD Mallorca between 1995 and 2005. Financial pressure intensified during the late 2000s and early 2010s. In January 2011 the company was described as being in an emergency financial situation, and the Catalan government approved a 10.5 million euro loan plan intended to support its survival. Spanair attempted to improve revenue and reduce costs, but remained dependent on additional financing. Negotiations with Qatar Airways for a cash injection ultimately failed. Spanair suspended all flights on 27 January 2012 and ceased operating, leaving its final passenger service as flight JK1326 from Trondheim to Las Palmas. The abrupt shutdown triggered scrutiny from Spanish authorities, including a possible fine over alleged failures to provide proper advance notice and concerns relating to aviation-security obligations. Spanair therefore remains an example of a once-significant Spanish network airline whose expansion, ownership changes and regional strategic importance could not overcome persistent financial difficulties.

Spanair was established in December 1986 as a joint venture between Scandinavian Airlines and Viajes Marsans. It began commercial operations in March 1988, initially flying European charter services for tour operators. This early business model connected the airline to Spain's expanding leisure-travel market while giving it an operating base from which to develop scheduled routes. The company expanded internationally in 1991, introducing long-haul services to the United States, Mexico and the Dominican Republic. In the late 1990s it operated Boeing 767-300ER aircraft on routes including Washington and Buenos Aires. Scheduled domestic flying began in March 1994, broadening Spanair from a charter-oriented carrier into a mixed airline serving both leisure and scheduled markets. Its network subsequently included domestic Spanish destinations, European cities and an extension into West Africa, while worldwide charters continued to be flown for tour companies. Spanair's principal operational centre became Barcelona–El Prat Airport. Madrid–Barajas and Palma de Mallorca served as additional focus cities. The company was also closely tied to Palma during part of its history: its head office was previously located in the Spanair Building on the grounds of Palma de Mallorca Airport. During the ownership transition in the late 2000s, the airline initially said that its head office would remain in Palma, despite speculation about a move to Barcelona. International integration was an important part of Spanair's development. The airline joined Star Alliance on 1 May 2003 and remained a member until its demise. It maintained code-share relationships with partner airlines and used alliance membership to connect its Spanish network with broader international itineraries. Its service model included buy-on-board food and drinks for economy passengers on Western European routes. The airline also renamed and revised its frequent-flyer programme as Spanair Star, whose distinctive feature was the ability to redeem points immediately as a discount on a future flight. Ownership became increasingly unsettled in the second half of the 2000s. SAS announced in June 2007 that it would sell its shares, but the divestment was cancelled in June 2008 when no acceptable transaction was achieved. In January 2009, a Catalan investor group led by the Consorci de Turisme de Barcelona and Catalana d'Initiatives acquired control through a one-euro bid. SAS retained a minority interest. The company subsequently made Barcelona its registered domicile and announced plans to relocate its corporate offices there. The proposed move prompted protests by approximately 200 employees outside Spanair's Palma offices in June 2009, who argued that the timetable was too rapid. The airline also sought to refresh its public identity. In 2009 it asked the public to participate in choosing a new logo, confirmed the winning design on 13 May, and began applying the resulting corporate identity to its aircraft from June. Spanair had a regional public profile as well: it sponsored Spanish football club RCD Mallorca as its main kit sponsor between 1995 and 2005. Despite efforts to increase revenue and reduce costs, Spanair experienced severe financial pressure. On 25 January 2011 it was described as being in an emergency financial situation, and the Catalan government approved a 10.5 million euro loan plan to support the airline. The company continued searching for a viable financial solution, including discussions with Qatar Airways. Those talks did not produce the anticipated cash injection. Spanair suspended all flights on 27 January 2012 and ceased operations. Its final passenger flight was identified as JK1326 from Trondheim to Las Palmas. SAS subsequently recorded a write-down of 1.7 billion Swedish kronor in connection with Spanair. Spanish authorities also considered imposing a fine after the abrupt shutdown, citing alleged aviation-security and notice-related violations. Spanair never resumed service and is now a defunct Spanish airline.

• 2012

  Operations cease

  [1]Spanairen.wikipedia.org

  Spanair suspended flights and ceased operations on 27 January after financing discussions with Qatar Airways failed.

• 2011

  Emergency financing plan

  [1]Spanairen.wikipedia.org

  The Catalan government approved a 10.5 million euro loan plan intended to help the financially troubled airline.

• 2009

  Control passes to Catalan investors

  [1]Spanairen.wikipedia.org

  A Catalan investor group acquired control through a one-euro bid, while SAS retained a minority share.

• 2003

  Star Alliance membership

  [1]Spanairen.wikipedia.org

  Spanair joined Star Alliance on 1 May.

• 1994

  Scheduled domestic flights begin

  [1]Spanairen.wikipedia.org

  Spanair started scheduled domestic passenger services in March.

• 1991

  Long-haul services launch

  [1]Spanairen.wikipedia.org

  Spanair introduced long-haul flights to the United States, Mexico and the Dominican Republic.

• 1988

  Commercial operations begin

  [1]Spanairen.wikipedia.org

  The airline began operating in March, initially focusing on European charter services.

• 1986

  Spanair is established

  [1]Spanairen.wikipedia.org

  Spanair was established in December as a joint venture between Scandinavian Airlines and Viajes Marsans.

Spanish domestic and European network airline combining scheduled passenger services with charter operations and selected long-haul flying.

• Passenger air transport · 1994

  Scheduled passenger network

  Spanair operated scheduled domestic flights within Spain and a European network centred on Barcelona, with Madrid and Palma de Mallorca serving as additional focus cities. The scheduled business developed after the airline's initial charter phase and became a central part of its identity as a Spanish network carrier.

• International passenger air transport · 1991

  Long-haul passenger services

  The airline introduced long-haul services in 1991 to destinations in the United States, Mexico and the Dominican Republic. During the late 1990s, Boeing 767-300ER aircraft were used on routes including Washington and Buenos Aires.

• Charter aviation · 1988

  Tour-operator charter flights

  Charter operations were Spanair's original business and remained part of its portfolio after scheduled domestic and international services expanded. The airline flew worldwide charters arranged for tour companies, linking its activity to Spain's leisure and package-tour markets.

• Frequent-flyer programme

  Spanair Star

  Spanair Star was the airline's revised frequent-flyer programme. It was presented as allowing members to redeem accumulated points immediately in the form of a discount on a future flight rather than requiring a conventional delayed reward redemption.

• 2009Public logo-selection initiative

  Spain

  Spanair invited members of the public to provide input on a new logo as part of a wider corporate-identity refresh. The winning design was formally confirmed on 13 May 2009, and the new identity began appearing on aircraft in June.

  Outcome. The updated identity was applied to the airline's aircraft and corporate materials during 2009.

  Source
• 1995RCD Mallorca kit sponsorship

  Spain

  Spanair became the main kit sponsor of Spanish football club RCD Mallorca, associating the airline with a prominent sporting institution in the Balearic Islands.

  Outcome. The sponsorship continued through 2005.

  Source

• 2012

  Suspension and termination of operationsOther

  Background

  Spanair remained financially troubled after efforts to secure outside investment, including discussions with Qatar Airways.

  Action taken

  The airline suspended all flights and ended operations on 27 January 2012.

  Aftermath

  The shutdown ended Star Alliance membership, disrupted passengers and prompted possible regulatory action by the Spanish government. SAS recorded a write-down of 1.7 billion Swedish kronor.

  SAS write-down. SEK 1.7 billion (2012)

  Source

• 2011

  Emergency financing and cost-reduction effortStrategy

  Background

  Spanair was described as being in an emergency financial situation amid continuing financial problems.

  Action taken

  The Catalan government approved a 10.5 million euro loan plan, while Spanair sought to improve revenue and cut costs.

  Aftermath

  The measures did not establish a sustainable financial position. Negotiations with Qatar Airways for a cash injection failed, and Spanair ceased operations in January 2012.

  Government loan plan. €10.5 million approved (2011)

  Source

• 2009

  Relocation of corporate domicile to BarcelonaStrategy

  Background

  Following the change in ownership, Spanair sought to strengthen its Barcelona presence while its previous administrative base was in Palma de Mallorca.

  Action taken

  The airline made Barcelona its registered domicile and began searching for a Barcelona headquarters.

  Aftermath

  Around 200 employees protested outside the Palma offices in June, arguing that the relocation timetable was too hasty.

  Source

• 2007

  SAS begins planned divestment of SpanairM&A

  Background

  SAS announced that it intended to sell its shares in Spanair as part of an ownership and portfolio restructuring.

  Action taken

  SAS initiated a sale process, but the proposed divestment was later cancelled when an acceptable valuation could not be obtained.

  Aftermath

  The eventual ownership transition took place in 2009 through a one-euro bid from a Catalan investor group, with SAS retaining a minority share.

  Source

1. 1Spanairen.wikipedia.org