SPAN EAST AIRLINES: United States (1969-1976). Span East is officially established at Spring Valley, New York, late in 1969, but places its operating base at Ypsilanti, Michigan. There it acquires the 10 Curtiss C-46 Commandos and several DC-6s that Universal Airlines has taken over from Zantop International Airlines.
The New York-registered freighting concern employs its aircraft to take over the former Zantop automobile industry contract and support flights. In August 1971, Span East sells its C-46s to Ortner Air Services and transfers its DC-6s to a new Base at Miami (MIA). There it begins flying nonscheduled services to the Caribbean and South America. Flights end in 1976.
SPANAIR, S. A.: Palma de Mallorca Airport, Edificio Spanair, Spd de Correos 50086, Palma de Mallorca, Spain; Phone 34 (71) 745 020; Fax 34 (71) 492 553; Http://www. spanair. com; Code JK; Year Founded 1987. A new Spanish charter carrier, Spanair, S. A., is formed at Palma de Mallorca in October 1987 by the travel and operators Scandinavia & Viajes Marsono, S. A. of Spain) and Vingresor, A. B. of Sweden. Gonzalo Pascual is named chairman with Carlos Bravo as director general/CEO. A workforce of some 600 is recruited and a fleet is assembled comprising 4 leased McDonnell Douglas MD-82s and MD-83s.
Revenue services commence on April 1, 1988 with a flight from Palma to Bilbao. Charters are now launched to and from the Canary Islands and Palma from destinations in Europe, primarily Norway, Sweden, Denmark, Germany, Austria, and Switzerland.
Enplanements for the remainder of the year total 454,600, but the net loss is $1.6 million.
Airline employment is increased 37.6% during 1989 to 366 and the fleet now includes 7 leased MD-83s. Orders are placed for two Boeing 767-3Y0ERs.
Passenger boardings skyrocket 190.3% to 1,319,699 and revenues balloon 101.5% to $99.6 million. Operating gain is $1.7 million and a $369,000 net profit is earned.
Company employment is increased by 21% in 1990 to 444 and the fleet includes 7 MD-83s and 1 MD-82—all leased.
Customer bookings jump another 48.9% to 1,141,186 and revenues rise a more modest 30.9% to $146.4 million. Expenses climb 32% to $145.32 million and cause the operating profit to slide to $1.02 million. Net gain surges to $1.05 million.
The workforce grows by 29.3% in 1991 to 574 and the 2 ER Boeings arrive (also by lease), beginning in April. Services are inaugurated to new North American destinations, including Cancun, New York, Orlando, and Puerto Plata and Punta Cana in the Dominican Republic.
Passenger boardings swell 49.3% to 1,704,263 and revenues jump 47.2% to $222.8 million. The operating profit is $3 million while net surplus reaches $3.8 million.
Airline employment is increased by 12.4% in 1992 to 645 and the leased fleet now includes 8 MD-83s, 1 MD-82, and 2 B-767-3Y0ERs. In September, twice-weekly flights are initiated from Madrid to Rio de Janeiro and Montevideo, Uruguay, on behalf of PLUNA (Primeras Lineas Uruguayas de Navegacion Aerea, S. A.), the latter nation’s flag carrier.
Customer bookings bounce upward by 13.7% to 1,937,041 while revenues advance by 11.7% to $229.4 million. Expenses are, however, up by 13.5% to $229.7 million and bring a $300 operating loss. There is a net profit of $9,000.
In 1993, Chairman Pascual and Managing Director Bravo oversee a workforce of 680. In addition to the PLUNA (Primeras Lineas Uruguayas de Navegacion Aerea, S. A.) service, destinations now visited include Cancun, New York, Orlando, Puerto Plata, and Punta Cana.
Passenger boardings increase another 8.7% to 2,105,746.
Twenty new employees are hired in 1994 and the fleet is expanded by the addition of 2 more leased MD-83s. In March, scheduled service is inaugurated from Palma de Mallorca to Madrid, Barcelona, and the Balearic and Canary Islands.
The carrier becomes an SAS (Scandinavian Airlines System) associate company on June 1.
Customer bookings this year jump 6% to 2,232,098.
The workforce is increased a huge 85.7% in 1995 to 1,300.
The carrier’s 16 aircraft transport a total of 3,150,167 passengers, a welcome 12.3% increase. Freight traffic figures show a dramatic 48.8% jump to 4.71 million FTKs. There are profits: $6.43 million (operating) and $241,000 (net).
Airline employment grows another 25.6% in 1996 to 1,630 and the leased fleet includes 12 MD-83s, 1 MD-82, and 2 B-767-3Y0ERs. Frequent flyer agreements are signed with SAS (Scandinavian Airlines System) and Deutsche Lufthansa, A. G.
Customer bookings jump 13.4% to 3,572,804 and 6.12 million FTKs are operated, a 31.3% increase. Revenues climb 4.5% to $367.72 million while costs ascend 5% to $362.66 million. Although operating gain falls to $5.05 million, the net profit moves up to $970,000.
The airline population grows to 2,168 in 1997. As the year begins, approximately 45.1% of the carrier’s flights are scheduled, with the remainder operated as charters. The fleet now includes 18 MD-83s, 2 MD-87s, and 2 B-767-3YOERs.
Share capital is 3,200 million pts. and is distributed between Viajas Marsans, S. A. (51%) and SAS (Scandinavian Airlines System) (49%). The carrier’s cooperation with Deutsche Lufthansa, A. G. begins early in the year, primarily in the areas of reservations and frequent flyer programs.
New scheduled flights are inaugurated to London (LGW) and Copenhagen during January and February. Also during the first quarter, a group of Spanish regional airlines, including Canarias Regional Air, S. A. doing business as Air Europa Express, Spanair, and Futura, S. A., complain to the EC that part of the government funds injected into Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A. during the fall of 1995 have been employed to finance a fare war against them. In addition, Canarias claims that Iberia has engaged in predatory pricing, arranging some of its schedules to directly affect private carriers such as itself. The Commission investigates.
Spanair increases its ticket prices by 15% on April 10, leading Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.) to increase its tariffs by 3.5% on April 25, the same day Air Europa, S. A. boosts its fares by 20%, the largest increase yet.
Following complaints from a consumers’ group and local authorities in the Balearic and Canary Islands, the Spanish government, on April 28, begins a price-fixing investigation of Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.) and two of its rivals. Antitrust authorities in the Ministry of Finance begin to review an arrangement between the flag carrier and Spanair and Air Europa, S. A., which has seen them end a yearlong price war while increasing fares an almost equal average of 10% on all Spanish domestic routes and dropping promotional fares.
New scheduled services to Varadero and Havana, Cuba, commence in May.
On October 1, Deutsche Lufthansa, A. G. and Spanair reach conclusion on a code-sharing agreement, but contrary to media reports, the German major takes no equity share.
The Spanish pilots union, SEPLA, concerned that modernization and cost-cutting plans afoot at Spain’s airlines might badly impact its members, stages a one-hour strike at the end of October as a symbolic protest again them.
Employing B-767-3Y0ERs, the company launches four-times-per-week roundtrips on November 20 between Madrid and Washington, D. C. (lAD). As part of its promotion for this new service, it promises to give free tickets to the first 266 passengers showing up at Washington, D. C. (lAD) in native Spanish costume (e. g., matadors or flamenco dancers).
Passenger boardings increase 32.9% to 4,427,582 while freight skyrockets 86.9% to 11.41 million FTKs. Operating revenues total $411 million, while costs are just $401.8 million. Consequently, the company enjoys a $9.2-million operating profit and a net gain of $1.3 million.
Airline employment stands at 2,000 in 1998, The fleet now includes 2 B-767-3Y0ERs, 2 MD-87s, 3 MD-82s, and 17 MD-83s.
Twice-daily dual-designator MD-83 roundtrips with SAS (Scandinavian Airlines System) begin at the end of March between Madrid and Copenhagen.
While en route from Aberdeen to Ibiza on June 27, an MD-83 with 170 passengers develops engine problems and must divert to Paris (ORY). On the ground at the French capital, the customers are bussed over to Paris (CDG), where they are able to catch another flight and complete their flight.
During the fall, the company begins to evaluate new aircraft from the Boeing Next Generation 737 group as well as the Airbus A320 family. Plans are made to have a choice in hand in time for the carrier’s annual board meeting in mid-March.
The opening of a third runway at Madrid’s international airport in November will allow the company to expand its hub operations there during the first quarter of the new year.
On December 18, a new direct service is introduced from Madrid to Buenos Aires, replacing the previous twice-weekly one-stop via Rio de Janeiro.
Passenger boardings surge 13.6% to 5.13 million, while cargo traffic skyrockets 178.8% to 31.9 million FTKs. On record income of $496.75 million, a $5.55-million net profit is generated.
In an interview with Airline Financial News on February 1, 1999, Managing Director Bravo indicates that the company will go public during the first or second quarter of the year 2000. In addition, eight MD-82s will be delivered this year, including five leased units formerly operated by China Eastern Airlines Company, Ltd.
Spanair inaugurates thrice-daily MD-83 roundtrips on February 21 from Madrid to Alicante, Vigo, and Oveido.
On March 22, Chairman Pascual signs orders with Airbus Industrie for 45 A310, A320, and A321 aircraft (21 firm orders, 12 to be confirmed, and 12 options) valued at $2.2 billion.
Thrice-daily return flights are started from Madrid to Seville on March 28. Twice-daily roundtrips are also begun to Lisbon, with Oporto served by bus from Vigo. Simultaneously, new code-sharing flights with SAS (Scandinavian Airlines System) are inaugurated between Copenhagen and Barcelona and from Stockholm to Madrid.
On April 22, the company reduces flights from Madrid’s Barajas Airport to 500 each week from nearly 700 to help reduce congestion. The move follows a similar reduction by Iberia Spanish Airlines (2) (Lin-eas Aereas de Espana, S. A.). Four days later, it is noted that the move will be temporary and will not impact upon the carrier’s expansion plans.
Flights to Valencia will begin later in the year.
Only days after the strict curfew rule at Aberdeen, Scotland, is extended, a delayed flight from Ibiza on May 8 fails to meet its loosened requirement. En route to Aberdeen, an MD-83 with 170 passengers must be diverted to Edinburgh, not because it will be late in arrival, but because it will be unable to lift off back to Majorca before the airport is closed. The angry passengers are placed on a 3-hr. bus ride to Aberdeen, while 170 others are likewise brought down to Edinburgh, from whence they depart for Spain just before 1 a. m.
Daily B-767-3Y0ER roundtrips commence on August 31 from Lisbon to Washington, D. C. (IAD) via Madrid.
The code-sharing pact with Deutsche Lufthansa, A. G. is deepened during October to include all flights by the two airlines between Spain and Germany and all Spanair flights to and between 10 Spanish regional airports. Simultaneously, Lufthansa agrees to maintain up to 45 new Airbus aircraft the Spanish line will purchase and train the pilots to fly them.
Pursuant to an agreement signed on September 23, a new accord between Spanair and United Airlines, one that the Spanish line has been seeking since it first began flying to the U. S. in 1997, takes effect on October 31. Under its terms, United places its code on Spanair flights from Washington, D. C. (IAD) to Madrid and from Madrid to Barcelona, Palma de Mallorca, and Malaga. Additionally, passengers on both lines are able to accrue and use rewards from the United frequent flyer program and participate in convenient one-stop check-in service.
Spanair, together with Air Europa, S. A. and Iberia Spanish Airlines (2) (Lineas Aereas de Espana, S. A.) are fined a total of $865,000, also in December, by the Tribunal de Defensa de la Competencia. Spain’s fair-competition agency has found the three guilty of collusion in the termination of a 1997 price war.
Late in the fourth quarter, the company debuts a modified color scheme with large block “Spanair” titles.
Passenger boardings surge 14.3% to 5,757,000 while freight traffic increases 23.1% to 38.92 million FTKs. Revenues jump 27.6% to $637.46 million, while expenses are up 27.9% to $628.71 million. Although the operating profit increases to $8.74 million, net gain slides to $3.8 million.
Airline employment at the beginning of 2000 stands at 3,909, a gigantic 85.7% increase over the previous 12 months. The MD-80 fleet now includes 10 MD-82s, 21 MD-83s, and 3 MD-87s.
A B-757-2Y0ER is leased on April 26 from Air 2000, Ltd. for eight months.
New nonstop roundtrips begin on March 26 from Madrid to Paris (CDG). Simultaneously, the five-times-a-week B-767-3Y0ER return service from Madrid to Washington, D. C. (IAD) becomes daily. On new services between Madrid and Rio de Janeiro, Spanair code-shares with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandeuse, S. A.).
AeBal (Aerolineas de Baleares, S. A.) is established at Palma de Mallorca in April to provide regional services on behalf of its parent, Spanair, which orders Boeing 717s for the operation. Originally, several names are considered for the enterprise, including Spanair Link and Air
Balaer. The first two AeBal B-717-2CMs are received on June 22 and 29. Christened Formentorand Espalmador, they are employed, using the Spanair code, to launch revenue services on July 4.
Meanwhile, on July 3, a new dual-designator pact begins with SAS (Scandinavian Airlines System). Under its terms, Spanair is able to place its code on SAS flights from Madrid to Copenhagen, Helsinki, Goteborg, and Oslo, while SAS shares flights with Spanair from Copenhagen to Alicante via Paris (CDG).
Previously operated by Korean Air (Korean Airlines-KAL), an MD-82 is leased from GECAS for four years as of July 15.
The company’s first A321-231 arrives at Palma de Mallorca from Seattle on September 29. In a special October 4 ceremony, the new jetliner is christened Camilo Jose Cela in honor of the Spanish Nobel Prize-winning author; it enters revenue service two days later on a scheduled flight to Madrid. The same day, Director General Carlos Bravo departs his position to spend more time with his family; his replacement is not immediately named.
The practice of naming the new A320s for famous living Spaniards continues on October 26 when the second delivered A321-231 is christened Placido Domingo, after the famous opera tenor.
In November, Lufthansa Cargo Airlines, A. G. takes over the management of all Spanair cargo activities, including its three international freight flights. Two more A320-231s are delivered, one each on November 17 and December 6.
The Air 2000, Ltd. B-757-2Y0ER is returned on December 26. Siemens, S. A. director Carlos Banon Blasco will be named director general early in the new year.
Customer bookings during these 12 months accelerate 19.6% to 7.15 million, but cargo traffic falls 9.2% to 34.18 million FTKs.
World History
