Vueling shares up after merger with Clickair is announced
Shares of the Spanish low-cost carrier rose by 21 percent after news of its merger was announced on Monday.8 July 2008
MADRID - Shares of the Spanish low-cost carrier Vueling rose by 21 percent to EUR 6.65 Tuesday after its merger with Clickair was confirmed late Monday.
Trading had been suspended in the shares of Vueling and of Spain's top airline Iberia, which controls Clickair.
The merger will create Spain's biggest low-cost airline and the third biggest carrier after Iberia and Spanair, with a fleet of 45 aircraft, 2,020 employees, 300 daily flights and 112 routes.
Iberia will hold a 46 percent stake in the new Barcelona-based airline, which will be called Vueling.
Rising petrol prices and other difficulties facing the aviation sector had made the merger virtually inevitable, press reports said.
[dpa / Expatica]