Spain’s aviation market is one of the largest in Europe with forecasts estimating annual passenger growth of up to 3.8 per cent up to 2028. This growth is also driving significant transformation of the industry as airlines navigate competition, evolving consumer preferences, and new opportunities in connectivity.

Speaking at this year’s Connect Aviation, taking place in Girona today and tomorrow, industry leaders from Binter, Volotea, Air Nostrum, and Vueling gathered to discuss their strategies in adapting to the evolving Spanish market.

Trains vs planes

One of the biggest challenges currently facing Spain’s domestic and regional aviation market is the phenomenal growth of Spain’s high-speed rail network which is transforming travel in and around Spain. Miguel Oliver, Network Planning & Scheduling Director at Iberia Regional/ Air Nostrum emphasised that Spain’s extensive investment in its high-speed rail network, which offers speed, comfort and convenience, with fast, city-centre-to-city-centre connectivity and minimal security checks is something that “airlines cannot directly compete with in terms of speed and convenience.”

This, he revealed was part of the reason Air Nostrum invested in Intermodalidad de Levante, the private high-speed rail operator in Spain. “We can’t compete on those routes as an airline, however we saw the numbers and the opportunity to invest and bring our expertise from the customer and logistics perspective.”

Jordi Pla Pintre, Chief Network & Strategy Officer at Vueling, added that airlines have to consider the importance of sustainability when it comes to competing with alternative transport methods such as rail networks. “Having transparent collaboration with airports, as well as other transport partners and local entities is crucial for the development of sustainable airline operations in Spain,” he said.

Route development 

Turning their attention to developing connectivity for Spain’s evolving airport market and consumer trends, industry leaders stressed the importance of partnerships and data-driven decision-making. Pintre emphasised that working closely with destination partners (both airports and tourism boards) is essential to ensure mutually beneficial routes. He cited Vueling’s recently announced route from Barcelona to Córdoba, demonstrating its commitment to developing viable markets through collaboration with local entities.

Gabriel Schmilovich Isgut, Chief Strategy Officer at Volotea echoed the importance of maintaining strong relationships with airport partners and tourist boards, especially given Volotea operates across more than 100 airports.

With passenger traffic now recovered following the global pandemic and consumer trends evolving, Air Nostrum’s Oliver noted that Spain’s outbound travel market is “rebounding post-Covid with strong demand for flights to Italy, France, Germany, the US and Latin America.”

Vueling is also seeing a surge in demand for long-haul connectivity, according to Pintre. “We are launching five new international routes from Barcelona this summer, which will be announced shortly.”

Regional opportunities

It’s not just the big hubs that are benefiting from this increase in traffic either. Smaller, regional airports are also leveraging this growth. Manuel Jonay Lobo Torres referenced how new more efficient aircraft are enabling direct long-haul services from regional airports with airlines such as United operating from Bilbao.  Meanwhile, Pintre stressed the importance of regional and low-fare traffic in supporting long-haul connectivity. “Regional and low-cost carriers feed into the long-haul network so they have to be factored in when developing long-haul connectivity but also to ensuring sustainable, year-round routes are available,” he said.

Patience is key in developing new routes, added Oliver as he cautioned “against assuming that simply launching a new route will attract passengers,” emphasising the need for thorough market research and targeted airline partnerships. “Understanding the market, doing your homework, ensuring there is a campaign to promote the destination and establishing which is the best airline to serve a destination are also crucial factors in developing connectivity.”

Looking Ahead

As the industry continues on its path of recovery and growth all four panellists expressed hope for continued resilience and adaptation as the industry moves forward. “Sustainability is our defining focus for the year ahead,” said Volotea’s Gabriel. Meanwhile, Pintre concluded that amid external uncertainties and geopolitical tensions it’s important that aviation’s stakeholders “remain calm.”

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