MERGER ON

SPAIN’S Air Nostrum has been given the green light for a merger with Ireland’s CityJet to form Europe’s largest regional airline. It’s the second time that European Commission permission has been granted after a 2019 go-ahead was suspended due to the Covid pandemic. A new holding company will be formed with both brands being maintained across a fleet of 70 aircraft - 48 of which belong to Air Nostrum. The economic model is similar to that of the IAG group established after the merger of British Airways and Iberia.

Air Nostrum also operates as an Iberia franchisee for regional flights.

Flying high

SPAIN'S airport operator Aena recorded an annual net profit in 2022 for the first time since the Covid-19 pandemic struck in 2020.

The firm that manages 46 airports in the country said it expected passenger numbers to return to normal this year, after January figures showed increases on 2019 pre-pandemic levels.

The company posted a net 2022 profit of €901.5 million in 2022 in contrast to a €475.4 million in the previous year.

It is proposing an 80% dividend payment to shareholders based on the results of the 2022 financial year.

While some European airports were affected by staff shortages as tourism rebounded last year, Aena's terminals have run smoothly - something it put down to keeping its staff during and after the pandemic.

For 2022 as a whole, Spanish airport traffic reached 88.5% of 2019 levels and was over double that of 2021.

Aena has now lifted its estimate for 2023 to 99% of 2019 numbers, but does not rule out going even higher and surpassing what was a record year.

It had previously said it expected a full recovery of air traffic by 2024.

Around 2,000 people will be employed by the new combined firm including maintenance and support services.

Machine boost

A PROGRAMME to install extra ATMs in large city districts in the Valencian Community has been announced by the regional government.

The move is aimed at reducing social exclusion suffered by mainly older residents following the mass closure of bank branches in favour of online transactions.

Valencian finance minister, Arcadi España, said that branch cuts in recent years had not been limited to smaller municipalities and rural areas.

The minister cited districts with populations of up to 15,000 in areas of Alicante, Elche, Castello de la Plana, and Valencia as examples.