12th Dec 2019 10:05
(Alliance News) - European budget airline Wizz Air Holdings PLC on Thursday announced a plan to set up an operation in the Middle East.
The airline, to be called Wizz Air Abu Dhabi, will be the first time the company has moved out of Europe. It will be set up in a joint venture with Abu Dhabi Development Holding Co PJSC, which looks after the emirate's state-owned companies.
Wizz expects operations to launch during the second half of 2020, flying on routes from Abu Dhabi to places where Wizz already has established business, namely central, western and eastern Europe. Further into the future, Wizz will add routes to India, the rest of the Middle East, and Africa.
The airline will have a fleet of Airbus A321neo aircraft, Wizz continued, and will have access to a market over five billion customers.
Chief Executive Jozsef Varadi said: "We are proud that our first airline to be established outside of Europe is in Abu Dhabi, the capital of the UAE. ADDH's deep rooted knowledge of the local market, support and navigation in a new market for Wizz is invaluable and will boost the successful development of this low-cost airline."
"Wizz Air Abu Dhabi will be an incremental path of growth for Wizz Air, built on our successful ultra-low cost business model, bringing affordable travel to ever more customers. We believe the new airline has the potential to be a significant player in the region," Varadi added.
The expansion comes a month after the Hungarian airline posted nearly doubled profit for the half year to September, reaching GBP387.9 million, with revenue rising 22% on the back of an 18% rise in passenger numbers.
Wizz, which is based in Geneva, also said it was on track towards the top end of full-year profit guidance despite headwinds for the airline industry such as higher fuel costs.
Wizz shares were 1.1% higher on Thursday morning in London at a price of 3,897.00 pence each. They are 32% higher over the past 12 months, and have nearly trebled since early 2015 when the company listed in London.
By George Collard; [email protected]
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