Wizz Air Abu Dhabi shortlists EX-YU markets
Low cost carrier Wizz Air, which boasts bases in Skopje, Tuzla and Belgrade in the former Yugoslavia, will launch its offshoot in Abu Dhabi, the capital of the United Arab Emirates, during the second half of the year. Wizz Air Abu Dhabi, which is 51% owned by the Emirate, will initially serve cities in Eastern Europe and Russia with a fleet of three new Airbus A321neos, increasing to fifty jets over ten years. In its recent third quarter earnings presentation, the budget airline listed potential markets which could be served from the Emirati capital, among which are Macedonia, Bosnia and Herzegovina, Serbia, Croatia and Montenegro.
The only city in the former Yugoslavia which currently boasts nonstop flights to Abu Dhabi is Belgrade through Etihad Airways, a full service carrier. On the other hand, all of the markets in the former Yugoslavia listed by Wizz Air are linked to the United Arab Emirates through hybrid airline Flydubai, which maintains services to Abu Dhabi’s neighbouring Emirate of Dubai. Out of all the EX-YU markets, Flydubai has a notable passenger share only in Bosnia and Herzegovina, at 11.8%, making it the third busiest LCC in the country, behind Wizz and Pegasus. Emirates also maintains seasonal flights from Dubai to Zagreb. In addition to Wizz Air, Etihad is in the process of forming its own Abu Dhabi-based low cost carrier in conjunction with Air Arabia. Plans for Air Arabia to introduce services to the Serbian capital last year were abruptly halted following the launch of ticket sales, after which Etihad unveiled its plans for a joint LCC with Air Arabia.
Commenting on its plans in the Gulf, Wizz Air’s CEO, Jozsef Varadi, said during the third quarter earnings call, “I think Abu Dhabi is a unique opportunity for Wizz. I mean, structurally, we are very excited about opportunities going further east and we are more excited going further east than going west”. He highlighted some less-than-favourable conditions in Western Europe, including regulatory pressures and a lack of infrastructure investment. In establishing an arm in the UAE capital, Wizz Air will be competing on the same turf as Air Arabia Abu Dhabi. “I see this as a play to make the expanded and very flash new Abu Dhabi Airport busier. Perhaps they read it as a moment to capitalise on just how very full Dubai is and thus a big chance to make Abu Dhabi a really thriving hub”, Andrew Charlton, the Managing Director of Aviation Advocacy, said. Aviation consultant, John Strickland, noted, “While there could be duplication or conflict between Wizz and Air Arabia, in my view, both airlines have sufficiently large networks focused on very different geographies to allow development on a complimentary basis”.
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