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Vueling, Clickair to Merge

9 July 2008

The board of Spanish low-cost airline Vueling Airlines SA has agreed to a merger with rival Clickair after months of negotiations.

In a filing to the Spanish market regulator, Vueling said the combined company would continue to fly under the Vueling name and would remain listed on the Spanish market.

The merger, which will require clearance from antitrust regulators, will give Spain’s flag carrier, Iberia Líneas Aéreas de Espana SA, a tighter grasp on the country’s low-cost segment, which has been besieged by discount carriers Ryanair Holding PLC and easyJet PLC.

source: Wall Street Journal

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