Trading in Vueling stocks have been suspended

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snowbird
Posts: 68
Joined: 05 Feb 2004, 00:00

Trading in Vueling stocks have been suspended

Post by snowbird »

Herewith a press release concerning VUELING
Quite surprising and no good news at all for VUELING. Last week the board stepped down (due to the bad results and not-succesful businessplans)
I am curious what kind of plans the new board has for the future.

Vueling share trading suspended - bourse
10.01.07, 4:18 AM ET

MADRID (Thomson Financial) - Trading in Vueling Airlines SA has been suspended, stock market regulator CNMV said in a statement.

Earlier, Spanish press reports said the no-frills airline is expected to launch a further profit-warning in the next few days, noting it could see losses of over 50 mln eur dragged down by the impact of lower fares and rising oil prices on EBTIDA.

With the release of first half results in August, Vueling cut its 2007 EBITDAR target to 23-42 mln eur from the 95 mln announced with its IPO documentation last November. Analysts noted, however, that this target had already been shaved to 80 mln.

Vueling shares last changed hands at 11.01 eur each.

LX-LGX
Posts: 2004
Joined: 20 Jan 2004, 00:00
Location: ANR

Post by LX-LGX »

Indeed snowbird. This is the official notice from www.cnmv.es :

La Dirección General de Mercados eleva la siguiente propuesta motivada de suspensión de la negociación al Presidente de la Comisión Nacional del Mercado de Valores, quien en virtud de la delegación de facultades otorgada por el Consejo de la Comisión Nacional con fecha 11 de julio de 2007, acuerda:

“Suspender cautelarmente, con efectos inmediatos, al amparo del Artículo 33 de la Ley 24/1988, de 28 de julio, del Mercado de Valores, la negociación en el Sistema de Interconexión Bursátil de las acciones, u otros valores que den derecho a su suscripción, adquisición o venta, de la entidad VUELING AIRLINES, S.A., mientras es difundida una información relevante sobre la citada entidad .”

Madrid, 01 de octubre de 2007

El Director General / El Presidente
Ángel Benito Benito / Julio Segura Sánchez

LX-LGX
Posts: 2004
Joined: 20 Jan 2004, 00:00
Location: ANR

Post by LX-LGX »

update 03/10/2007 (source luchtvaartnieuws.nl):

- obliged to by the Madrid Stock Exchange, Vueling has corrected its 2007 expectations to a loss of 10 mio euro (at the worst, so they actually expect less loss)

- reasons: lower occupancy, lower turnover p/pax, sales in Aug and Sept lower as expected, lower overall ticket price , higher fuel costs, strong euro

- shares are down 12,2 % to 9,66 euro (coming from 45 euro in March 2007...)

Charlie Roy
Posts: 523
Joined: 29 Aug 2006, 22:20
Location: Europa

Post by Charlie Roy »

10 million euro loss is no biggie. Why all the drama?

Alitalia lose that in a week!

fcw
Posts: 765
Joined: 01 Nov 2006, 23:20

Post by fcw »

10mio, EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
Meaning you are in the red before you have to pay a lot of bills.
In other words: you are in big trouble.
Last edited by fcw on 04 Oct 2007, 12:17, edited 1 time in total.

Flanders
Posts: 35
Joined: 30 Mar 2006, 00:00

Post by Flanders »

This is indeed very bad news for Vueling and its stock holders.
I was planning to buy some shares when they dropped under 10 euro but I guess I can better wait, I think we havent seen the bottom yet! 8)

Other persons here owning shares in the airline industry? I bought EADS two weeks ago, 10% up since! :D

LX-LGX
Posts: 2004
Joined: 20 Jan 2004, 00:00
Location: ANR

Post by LX-LGX »

Charlie Roy wrote:10 million euro loss is no biggie. Why all the drama?
Actually, it's indeed a drama. Being suspended from a stock exchange (even for one day) is about the worst that can happen to a company looking for public funds from investors.

As fcw stated, the result will be much worse then the just predicted expectations (10 mio euro). 1st Quarter 2007 had a EBITDAR loss of 10,3 mio euro, but the profit/loss account shows a final loss (before interest and taxes) of some 24 mio euro. This includes 18 mio fuel costs and 13 mio euro aircraft lease costs. Gross revenue for this period was 60 mio (32 mio tickets and 28 mio ancillaries), at a load factor of 67% (up 7,5% compared to 1Q06).

Vueling now has 17 leased A320's. They want to buy (own) some of them, but who will deliver the money when even luchtzak-members don't want to buy shares?

snowbird
Posts: 68
Joined: 05 Feb 2004, 00:00

Post by snowbird »

Latest news of VUELING
more bad news


Shareholders at Vueling call for cull of bosses
10 October 2007

MADRID - (AFP) - The biggest shareholder in Spanish low-cost airline Vueling has called for a shareholders' meeting to sack "some or all" of the management of the struggling group, a statement from the shareholder showed on Wednesday.

Inversiones Hemisferio, which owns 15.87 percent of Vueling, wants an extraordinary general meeting (EGM) at which a motion to censure the board would be put to shareholders, a statement sent to market regulator CNMV showed.

Hemisferio is also seeking the replacement of "some or all" of the board and wants to discuss the group's economic situation.

At the end of September, US manager Barbara Cassani was appointed as new chairwoman after a series of resignations by four board members, including former chairman Jose Miguel Abad Silvestre.

Cassani is known for founding low-cost airline Go Fly under British Airways and being the chair during the first phase of London's successful bid for the 2012 Olympics.
Vueling has issued two profit warnings in the last few months as it struggles with high fuel prices and fierce competition between low-cost airlines in Europe.

It warned of a possible operating loss this year that could reach 10 million euros in the worst-case scenario.

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