The UAE could see Wizz Air operating out of Abu Dhabi, earlier than expected; after Wizz Air's CEO, József Váradi, revealed plans to accelerate the airline’s Middle East launch, despite the coronavirus crisis gripping aviation.
Wizz Air’s new Abu Dhabi concept was announced late last year and is scheduled to begin operating in Q3 2020; as the UAE’s sixth airline and the Middle East’s latest low-cost carrier.
There had been speculation that the launch may have to be delayed after coronavirus decimated international travel demand, but the company confirmed in a recent statement that the launch is “progressing in line with the initial timeline”.
The launch however, could come even sooner and be even bigger than initially planned.
Speaking during Aviation Week Network’s latest Air Transport Webinar CEO József Váradi told viewers that while the airline’s main focus remains on Central and Eastern Europe, it is also looking further east.
“We are scaling up our original plans. We are trying to launch even earlier than what we originally planned, and the scale will be bigger. We are bringing a niche that does not really exist at this point in time. We’ll be stimulating the marketplace and that feeds into the strategic objectives of Abu Dhabi."
Wizz Air CEO József Váradi
Váradi said back in February that Wizz Air plans to operate more than 50 A321neo aircraft in the Middle East, within 10 years. He said the airline, which will intensify competition on European routes as well as rival other low-cost operators, will be “a significant player in the region”.
Wizz Air is not immune from the coronavirus disaster and is operating with just 3% of their capacity. They recently said they would have to lay off 1,000 employees.
But Váradi said the carrier has stronger liquidity than most other airlines, making it more resilient. In fact, it maintains about $1.62 billion in cash.
“If the airline stays grounded for another 18 months, we would still be in business – that's the level of liquidity that we have,”
Wizz Air CEO József Váradi
The UAE’s other new low-cost debutant, Air Arabia Abu Dhabi, is also on track to launch in 2020, despite speculation that they would have to delay. They have received their Air Operating Certificate (AOC) from the UAE’s General Civil Aviation Authority (GCAA), making them the country’s fifth airline.
Source: Aviation Business ME Feature Image: Anna Zvereva