Latest news with #Váradi
Yahoo
4 days ago
- Business
- Yahoo
Airline chief defends £3.3m pay after backlash
Britain is opposed to rewarding chief executives with the generous pay deals needed to retain top talent, the boss of Wizz Air has said. József Váradi, who received a pay package totalling €3.8m (£3.3m) last year, spoke out after 28pc of the airline's shareholders voted against its remuneration report on Wednesday. He said: 'There is a kind of an anti-executive pay sentiment in the UK, whether we like it or not. 'Some people take a different view on social paradigms. But we cannot ignore the fact that executive pay is a matter of retention, and you have to retain your talents in the company.'As far as I'm concerned we have a very fair and equitable system for addressing performance and realities, and the need to retain top talents.'Wizz Air, which is based in Hungary but listed in London, has suffered a shareholder backlash over executive pay in recent years. Its share price has slumped 45pc over the past year after demand for flights in its core market of Eastern Europe was hurt by the war in Ukraine and the conflict in the Middle East led to the disruption of services to Israel. Unexpected wear and tear to the Pratt & Whitney engines on Wizz Air's jets – caused by the use of contaminated powdered metal during manufacturing – has also forced it to ground about a fifth of the fleet for repairs at any one impact of the setbacks was revealed last month, when Wizz said operating profit in the year through March had dropped to barely a third of the previous total, triggering a stock rout that saw £480m wiped off its market Váradi's pay for the year through March included €2.3m in shares awarded as the prospect of securing a £100m long-term bonus faded. The latter payout requires shares in Wizz Air to hit £120, a distant prospect with it trading at just £11 on Thursday. Mr Váradi said Wizz Air's executive pay is benchmarked to airline industry added: 'We have never been down-voted on anything. Which British government has even been elected with 70pc of the vote? 'What it tells me is that the majority of investors support the direction we are taking, but there is a minority – not a negligible minority – that is not overly happy.'Mr Váradi's remarks add to an ongoing debate over executive salaries after Julia Hoggett, the chief executive of the London Stock Exchange, said Britain was being held back by a campaign against high pay and that a 'constructive discussion' was required. Burberry came under fire in May after it was revealed that Joshua Schulman, its new chief executive, was paid almost £2.6m in his first nine months in the job, and stands to make £5.6m this year if he meets bonus targets – even as the luxury fashion brand cuts up to 1,700 O'Leary, the chief executive of Ryanair, qualified for a bonus of more than €100m earlier this year after the Irish carrier's shares traded above a specified level for a 28th straight day, despite it reporting a 16pc drop in annual profit. Mr Váradi said Wizz Air had no plans to review its London listing despite saying last year that the City had 'lost a bit of its mojo when it comes to capitalism'. He added: 'We know that there is market speculation happening through short sellers, but once we get rid of the uncertainties we will stabilise that and also get more solid results in the stock exchange.'Yes, we are going through some rougher waters right now, but we have a very solid, loyal investor base.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Time of India
15-07-2025
- Business
- Time of India
How did Wizz Air Abu Dhabi manage to keep fares so low? Which airlines now offer the best alternatives?
While several low-cost carriers like Flydubai and Air Arabia remain, none fully replicate Wizz Air Abu Dhabi's reach or pricing model. Image: Gabala International Airport TL;DR Wizz Air Abu Dhabi shuts down September 1, 2025, ending a six-year run as the Gulf's first European LCC. Cited reasons: geopolitical instability, regulatory limits, engine issues in hot climates, and supply chain disruptions. Served over 3.5 million passengers in 2024, flying to 30+ destinations with ultra-low fares. Operated a hyper-efficient model: single fleet type, no-frills pricing, high aircraft utilization, and fuel-efficient leased aircraft. Exit creates a major void in affordable regional air travel, no airline currently replicates its scale or pricing. Wizz Air Abu Dhabi 's Exit Wizz Air Abu Dhabi, the first European low-cost carrier (LCC) to establish a base in the Gulf, will cease all operations effective September 1, 2025. The airline's announcement, made yesterday, marks the end of a six-year run in the UAE, and its departure has left industry stakeholders, budget-conscious travellers, and regional policymakers facing a vacuum that will be difficult to fill. Citing a combination of geopolitical instability, regulatory limitations, airspace closures, hot-weather engine complications, and supply chain disruptions, Wizz Air has opted to dissolve its joint venture with Abu Dhabi's state-owned holding company ADQ and pivot its focus back to core European markets. CEO József Váradi described the decision as 'tough but necessary,' acknowledging that persistent structural challenges in the Gulf rendered Wizz Air's ambitious growth model unsustainable in the region. 'The operating environment has changed significantly,' Váradi said. 'Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions. While this was a difficult decision, it is the right one given the current market dynamics.' For travellers who came to rely on Wizz Air's ultra-low fares and direct connectivity to niche destinations, its exit is more than a strategic retreat, it's a disruption that may lead to lasting changes in how affordable travel functions across the UAE and the wider Gulf. A Strategic Entry That Redefined Gulf Connectivity Wizz Air's entry into the Gulf was a calculated strategic move that began with an announcement in December 2019. In partnership with ADQ (Abu Dhabi Developmental Holding Company), the airline created Wizz Air Abu Dhabi, a 51:49 joint venture aimed at transforming Zayed International Airport into a budget airline hub for the region. The airline officially launched operations in November 2020 with just two Airbus A321neo aircraft, gradually scaling up to a fleet of 12 by mid-2024. At its peak, the airline was flying to over 30 destinations across Europe, Central Asia, the Indian subcontinent, and the broader Middle East, operating 230 weekly departures from its Abu Dhabi base. Within just a few years, Wizz Air had positioned itself not only as a disruptor but as a cornerstone of budget travel options for the Gulf's highly mobile, cost-sensitive population. From the outset, the carrier's mission was clear: provide ultra-low-cost travel to underserved markets while aligning with Abu Dhabi's ambitions to diversify its aviation and tourism sectors. Why Wizz Air Was Indispensable to Gulf Travellers Wizz Air Abu Dhabi, the Gulf's first European low-cost carrier, disrupted a market dominated by premium airlines by offering fares up to 70% lower and direct routes to underserved international destinations. Its model expanded travel access for millions. Operating from Abu Dhabi, it served migrant workers, students, and middle-income families with affordable links to Eastern and Central Europe, the Balkans, the Caucasus, Central Asia, North Africa, and South Asia. Who relied on it: South Asians from India, Bangladesh, Sri Lanka for home visits and education travel. Eastern Europeans (e.g. Romania, Ukraine, Georgia) for direct access to secondary cities. Central Asians lacking affordable alternatives to major hubs. Omani and Egyptian travellers using regional low-cost routes. Its focus on Tier-2 and Tier-3 cities cut costs and avoided hub congestion. Crucially, it gave Abu Dhabi residents a budget option without relying on Dubai-based carriers. For many, Wizz Air was the only direct and affordable link to home or opportunity. Its exit leaves a gap that few airlines are currently equipped to fill. How Wizz Air managed to Keep Fares So Low Wizz Air Abu Dhabi's operational backbone was its ultra-low-cost carrier (ULCC) model, a system designed to squeeze maximum efficiency and profitability from every aspect of the airline's operations. This model wasn't just about cutting costs, but about engineering scale, simplicity, and standardization across the board, all while complying with stringent European Aviation Safety Agency (EASA) standards. Key pillars of its model included: Single-Type Fleet (Airbus A320 Family) Wizz Air operated only Airbus A320 and A321 aircraft, streamlining crew training, maintenance procedures, spare parts inventory, and scheduling. Fewer variables meant lower costs and faster turnaround times. High-Density Seating Configurations The A321neo aircraft were configured with up to 239 seats,significantly more than many competitors. , This allowed more passengers per flight, reducing per-seat cost and maximizing revenue. No-Frills, Unbundled Fare Structure Tickets included only a small personal item. Everything else,carry-ons, checked bags, meals, seat selection, and priority boarding,was charged separately, this kept base fares low and enabled strong ancillary revenue generation. High Aircraft Utilization Wizz Air minimized aircraft downtime by maintaining tight turnaround windows and scheduling flights at off-peak hours, including early mornings and late nights, more flight hours per aircraft per day = lower unit costs and higher asset efficiency. Use of Secondary or Budget Terminals Wherever possible, the airline flew out of lower-cost satellite terminals or regional airports with reduced landing fees and fewer ground handling expenses, faster boarding (often via front and rear stairs), fewer delays, and lower operating fees. Young, Fuel-Efficient Fleet The use of leased A320neo and A321neo aircraft, among the most fuel-efficient in their class, helped Wizz Air reduce fuel burn, cut carbon emissions, and lower maintenance needs. Strict Cost Controls with Safety Uncompromised Despite aggressive cost management, Wizz Air fully adhered to European Union Aviation Safety Agency (EASA) standards, among the most rigorous globally, the airline maintained a strong safety record through uniform training protocols and modern equipment. This hyper-efficient system allowed Wizz Air to consistently underprice competitors while staying profitable, a rare balance in commercial aviation. Scale and Scope: Wizz Air Abu Dhabi by the Numbers Wizz Air Abu Dhabi built a significant presence at Zayed International Airport in a remarkably short time: Fleet: 12 aircraft (8 Airbus A321s and 4 A321neos) Weekly Departures: 230 flights Destinations: 30+ cities across three continents Passengers in 2024: 3.5 million (up 20% YoY) Flights Operated in 2024: 19,000 Seats Offered in 2024: 4.4 million Load Factor: Over 80% Market Share at AUH: 9% (compared to Etihad's 64% and Air Arabia Abu Dhabi's 9.1%) Weekly Seat Capacity: Approx. 34,400 departure seats These figures illustrate just how deeply Wizz Air had embedded itself into Abu Dhabi's air travel infrastructure and how vital it became to low-cost aviation in the region. Why Wizz Air Is Leaving: Challenges It Couldn't Overcome Despite local traction, Wizz Air Abu Dhabi couldn't overcome key structural barriers. The airline confirmed in July 2025 it will cease operations after August 31. Key challenges: Airspace restrictions: Ongoing regional conflicts led to repeated closures, forcing costly rerouting and schedule disruptions. Engine performance in heat: The A321neo's Pratt & Whitney engines degraded faster in extreme Gulf temperatures, causing frequent groundings and reduced fleet availability. Regulatory roadblocks: Limited access to markets like India, and North Africa stalled route expansion and growth plans. Supply chain delays: Global shortages in parts and aircraft limited fleet expansion and reliability. CEO József Váradi called the exit 'tough but necessary,' as the airline reallocates resources to less constrained European markets. Can Other Airlines Fill the Void? As Wizz Air Abu Dhabi prepares to exit the market by September 2025, several regional low-cost carriers are positioned to offer alternatives. These airlines already serve large portions of the Middle East, South Asia, and parts of Europe, and while none offer a direct one-to-one replacement, they play crucial roles in maintaining affordable air connectivity across the region. Flydubai launched in 2009 as a state-owned low-cost airline based in Dubai. It has since grown into one of the Gulf's most prominent budget carriers, providing essential connectivity to both major cities and underserved destinations. Flydubai plays a key role in regional mobility and long-haul budget travel, especially out of the UAE. Base: Dubai International Airport (DXB) Fleet: Over 80 aircraft, primarily Boeing 737-800 and 737 MAX models Network: Serves more than 120 destinations across Europe, Asia, Africa, and the Middle East Notable Routes: India, Central Asia, Russia, Eastern Europe, Balkans, North Africa Model: Low-cost, unbundled fares with optional services for baggage, meals, and seating Air Arabia established in 2003, is the region's first and largest low-cost carrier. With multiple hubs, including Sharjah and Abu Dhabi, it is a major player in regional aviation, connecting high-volume expat and labour markets with the Gulf. Its consistently affordable pricing and strong regional network make it a natural fallback for budget-conscious flyers. Bases: Sharjah International Airport (SHJ), Abu Dhabi International Airport (AUH), and other satellite hubs Fleet: All-Airbus A320 family aircraft Network: Extensive coverage across the Indian subcontinent, Central Asia, Middle East, and North Africa Destinations: India, Egypt, Bangladesh, Sri Lanka, and various Gulf and CIS countries Positioning: Strong presence in labour-heavy corridors and secondary city routes Jazeera Airways founded in 2004, is Kuwait's privately owned low-cost airline. It has steadily expanded its reach across the Middle East, South Asia, and parts of Europe. The airline targets mid-size and underserved cities, offering direct routes and competitive fares that attract both budget travellers and the diaspora. Base: Kuwait International Airport Fleet: 24 aircraft (mix of Airbus A320ceo and A320neo), with 26 additional aircraft on order Network: Covers Middle East, South Asia, and Europe Destinations: India, Sri Lanka, Nepal, Bangladesh, Egypt, UAE, and Turkey Focus: Efficient point-to-point connections, especially from Gulf to South Asia SalamAir Oman's national budget carrier, began operations in 2017 and quickly positioned itself as a reliable low-cost option in the region. The airline serves both domestic and international routes with a focus on affordability and accessibility. Its modern fleet and growing international presence make it an important alternative for travellers flying in and out of the Gulf. Base: Muscat International Airport Fleet: 13 Airbus A320 family aircraft Network: 6 domestic and 37 international cities across 18 countries Coverage: Routes across GCC, India, Bangladesh, Egypt, Nepal, Turkey, and East Africa Recognition: Named Oman's Most Trusted Brand in 2022 and 2023 While these carriers each provide valuable services and growing networks, Wizz Air Abu Dhabi had a distinct advantage in its model: direct links to secondary cities across Eastern Europe and Central Asia, ultra-low fares, and a scale of operations that blended affordability with wide geographic reach. No single airline currently replicates that mix,meaning the void it leaves behind may take time to truly fill. Strategic Blow to Abu Dhabi's Aviation Vision Wizz Air Abu Dhabi was more than a commercial venture,it was a pillar in the capital's broader ambition to become a hub for affordable international travel. The partnership with ADQ was emblematic of the UAE's strategy to diversify its aviation ecosystem, previously dominated by long-haul luxury carriers like Etihad Airways. Wizz Air's low-cost operations: Expanded Abu Dhabi's connectivity to new markets. Brought in new demographics of visitors, including tourists from Eastern Europe and students from South Asia. Enabled Abu Dhabi to compete with Dubai and Doha as a transit point for budget-conscious travelers. With the airline's exit, Zayed International Airport loses a key enabler of low-cost connectivity. Authorities may now have to consider financial incentives, landing fee reductions, and targeted route subsidies to attract alternative operators that can plug the emerging connectivity gaps. FAQs: Q. Why is Wizz Air Abu Dhabi shutting down? Due to operational challenges including airspace closures, engine wear in extreme heat, limited market access, and supply chain issues. Q. When is the last day of Wizz Air Abu Dhabi flights? All operations will cease after August 31, 2025. Q. Which destinations will be affected? Over 30 cities across Eastern Europe, Central Asia, South Asia, and the Middle East, many of them underserved by other carriers. Q. Will other airlines replace Wizz Air? Alternatives exist (Flydubai, Air Arabia, SalamAir, Jazeera), but none currently match Wizz Air's network or pricing. Q. What made Wizz Air fares so cheap? A no-frills model, single aircraft type, high-density seating, off-peak flying, and leased fuel-efficient planes — all built for cost efficiency.
Time of India
15-07-2025
- Business
- Time of India
How did Wizz Air Abu Dhabi managed to keep fares so low? Which airlines now offer the best alternatives?
While several low-cost carriers like Flydubai and Air Arabia remain, none fully replicate Wizz Air Abu Dhabi's reach or pricing model. Image: Gabala International Airport TL;DR Wizz Air Abu Dhabi shuts down September 1, 2025, ending a six-year run as the Gulf's first European LCC. Cited reasons: geopolitical instability, regulatory limits, engine issues in hot climates, and supply chain disruptions. Served over 3.5 million passengers in 2024, flying to 30+ destinations with ultra-low fares. Operated a hyper-efficient model: single fleet type, no-frills pricing, high aircraft utilization, and fuel-efficient leased aircraft. Exit creates a major void in affordable regional air travel, no airline currently replicates its scale or pricing. Wizz Air Abu Dhabi 's Exit Wizz Air Abu Dhabi, the first European low-cost carrier (LCC) to establish a base in the Gulf, will cease all operations effective September 1, 2025. The airline's announcement, made yesterday, marks the end of a six-year run in the UAE, and its departure has left industry stakeholders, budget-conscious travellers, and regional policymakers facing a vacuum that will be difficult to fill. Citing a combination of geopolitical instability, regulatory limitations, airspace closures, hot-weather engine complications, and supply chain disruptions, Wizz Air has opted to dissolve its joint venture with Abu Dhabi's state-owned holding company ADQ and pivot its focus back to core European markets. CEO József Váradi described the decision as 'tough but necessary,' acknowledging that persistent structural challenges in the Gulf rendered Wizz Air's ambitious growth model unsustainable in the region. 'The operating environment has changed significantly,' Váradi said. 'Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions. While this was a difficult decision, it is the right one given the current market dynamics.' For travellers who came to rely on Wizz Air's ultra-low fares and direct connectivity to niche destinations, its exit is more than a strategic retreat, it's a disruption that may lead to lasting changes in how affordable travel functions across the UAE and the wider Gulf. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get ₹2Cr life cover@ ₹700 p.m. ICICI Pru Life Insurance Plan Get Quote Undo A Strategic Entry That Redefined Gulf Connectivity Wizz Air's entry into the Gulf was a calculated strategic move that began with an announcement in December 2019. In partnership with ADQ (Abu Dhabi Developmental Holding Company), the airline created Wizz Air Abu Dhabi, a 51:49 joint venture aimed at transforming Zayed International Airport into a budget airline hub for the region. The airline officially launched operations in November 2020 with just two Airbus A321neo aircraft, gradually scaling up to a fleet of 12 by mid-2024. At its peak, the airline was flying to over 30 destinations across Europe, Central Asia, the Indian subcontinent, and the broader Middle East, operating 230 weekly departures from its Abu Dhabi base. Within just a few years, Wizz Air had positioned itself not only as a disruptor but as a cornerstone of budget travel options for the Gulf's highly mobile, cost-sensitive population. From the outset, the carrier's mission was clear: provide ultra-low-cost travel to underserved markets while aligning with Abu Dhabi's ambitions to diversify its aviation and tourism sectors. Why Wizz Air Was Indispensable to Gulf Travellers Wizz Air Abu Dhabi, the Gulf's first European low-cost carrier, disrupted a market dominated by premium airlines by offering fares up to 70% lower and direct routes to underserved international destinations. Its model expanded travel access for millions. Operating from Abu Dhabi, it served migrant workers, students, and middle-income families with affordable links to Eastern and Central Europe, the Balkans, the Caucasus, Central Asia, North Africa, and South Asia. Who relied on it: South Asians from India, Bangladesh, Sri Lanka for home visits and education travel. Eastern Europeans (e.g. Romania, Ukraine, Georgia) for direct access to secondary cities. Central Asians lacking affordable alternatives to major hubs. Omani and Egyptian travellers using regional low-cost routes. Its focus on Tier-2 and Tier-3 cities cut costs and avoided hub congestion. Crucially, it gave Abu Dhabi residents a budget option without relying on Dubai-based carriers. For many, Wizz Air was the only direct and affordable link to home or opportunity. Its exit leaves a gap that few airlines are currently equipped to fill. How Wizz Air managed to Keep Fares So Low Wizz Air Abu Dhabi's operational backbone was its ultra-low-cost carrier (ULCC) model, a system designed to squeeze maximum efficiency and profitability from every aspect of the airline's operations. This model wasn't just about cutting costs, but about engineering scale, simplicity, and standardization across the board, all while complying with stringent European Aviation Safety Agency (EASA) standards. Key pillars of its model included: Single-Type Fleet (Airbus A320 Family) Wizz Air operated only Airbus A320 and A321 aircraft, streamlining crew training, maintenance procedures, spare parts inventory, and scheduling. Fewer variables meant lower costs and faster turnaround times. High-Density Seating Configurations The A321neo aircraft were configured with up to 239 seats,significantly more than many competitors. , This allowed more passengers per flight, reducing per-seat cost and maximizing revenue. No-Frills, Unbundled Fare Structure Tickets included only a small personal item. Everything else,carry-ons, checked bags, meals, seat selection, and priority boarding,was charged separately, this kept base fares low and enabled strong ancillary revenue generation. High Aircraft Utilization Wizz Air minimized aircraft downtime by maintaining tight turnaround windows and scheduling flights at off-peak hours, including early mornings and late nights, more flight hours per aircraft per day = lower unit costs and higher asset efficiency. Use of Secondary or Budget Terminals Wherever possible, the airline flew out of lower-cost satellite terminals or regional airports with reduced landing fees and fewer ground handling expenses, faster boarding (often via front and rear stairs), fewer delays, and lower operating fees. Young, Fuel-Efficient Fleet The use of leased A320neo and A321neo aircraft, among the most fuel-efficient in their class, helped Wizz Air reduce fuel burn, cut carbon emissions, and lower maintenance needs. Strict Cost Controls with Safety Uncompromised Despite aggressive cost management, Wizz Air fully adhered to European Union Aviation Safety Agency (EASA) standards, among the most rigorous globally, the airline maintained a strong safety record through uniform training protocols and modern equipment. This hyper-efficient system allowed Wizz Air to consistently underprice competitors while staying profitable, a rare balance in commercial aviation. Scale and Scope: Wizz Air Abu Dhabi by the Numbers Wizz Air Abu Dhabi built a significant presence at Zayed International Airport in a remarkably short time: Fleet: 12 aircraft (8 Airbus A321s and 4 A321neos) Weekly Departures: 230 flights Destinations: 30+ cities across three continents Passengers in 2024: 3.5 million (up 20% YoY) Flights Operated in 2024: 19,000 Seats Offered in 2024: 4.4 million Load Factor: Over 80% Market Share at AUH: 9% (compared to Etihad's 64% and Air Arabia Abu Dhabi's 9.1%) Weekly Seat Capacity: Approx. 34,400 departure seats These figures illustrate just how deeply Wizz Air had embedded itself into Abu Dhabi's air travel infrastructure and how vital it became to low-cost aviation in the region. Why Wizz Air Is Leaving: Challenges It Couldn't Overcome Despite local traction, Wizz Air Abu Dhabi couldn't overcome key structural barriers. The airline confirmed in July 2025 it will cease operations after August 31. Key challenges: Airspace restrictions: Ongoing regional conflicts led to repeated closures, forcing costly rerouting and schedule disruptions. Engine performance in heat: The A321neo's Pratt & Whitney engines degraded faster in extreme Gulf temperatures, causing frequent groundings and reduced fleet availability. Regulatory roadblocks: Limited access to markets like India, and North Africa stalled route expansion and growth plans. Supply chain delays: Global shortages in parts and aircraft limited fleet expansion and reliability. CEO József Váradi called the exit 'tough but necessary,' as the airline reallocates resources to less constrained European markets. Can Other Airlines Fill the Void? As Wizz Air Abu Dhabi prepares to exit the market by September 2025, several regional low-cost carriers are positioned to offer alternatives. These airlines already serve large portions of the Middle East, South Asia, and parts of Europe, and while none offer a direct one-to-one replacement, they play crucial roles in maintaining affordable air connectivity across the region. Flydubai launched in 2009 as a state-owned low-cost airline based in Dubai. It has since grown into one of the Gulf's most prominent budget carriers, providing essential connectivity to both major cities and underserved destinations. Flydubai plays a key role in regional mobility and long-haul budget travel, especially out of the UAE. Base: Dubai International Airport (DXB) Fleet: Over 80 aircraft, primarily Boeing 737-800 and 737 MAX models Network: Serves more than 120 destinations across Europe, Asia, Africa, and the Middle East Notable Routes: India, Central Asia, Russia, Eastern Europe, Balkans, North Africa Model: Low-cost, unbundled fares with optional services for baggage, meals, and seating Air Arabia established in 2003, is the region's first and largest low-cost carrier. With multiple hubs, including Sharjah and Abu Dhabi, it is a major player in regional aviation, connecting high-volume expat and labour markets with the Gulf. Its consistently affordable pricing and strong regional network make it a natural fallback for budget-conscious flyers. Bases: Sharjah International Airport (SHJ), Abu Dhabi International Airport (AUH), and other satellite hubs Fleet: All-Airbus A320 family aircraft Network: Extensive coverage across the Indian subcontinent, Central Asia, Middle East, and North Africa Destinations: India, Egypt, Bangladesh, Sri Lanka, and various Gulf and CIS countries Positioning: Strong presence in labour-heavy corridors and secondary city routes Jazeera Airways founded in 2004, is Kuwait's privately owned low-cost airline. It has steadily expanded its reach across the Middle East, South Asia, and parts of Europe. The airline targets mid-size and underserved cities, offering direct routes and competitive fares that attract both budget travellers and the diaspora. Base: Kuwait International Airport Fleet: 24 aircraft (mix of Airbus A320ceo and A320neo), with 26 additional aircraft on order Network: Covers Middle East, South Asia, and Europe Destinations: India, Sri Lanka, Nepal, Bangladesh, Egypt, UAE, and Turkey Focus: Efficient point-to-point connections, especially from Gulf to South Asia SalamAir Oman's national budget carrier, began operations in 2017 and quickly positioned itself as a reliable low-cost option in the region. The airline serves both domestic and international routes with a focus on affordability and accessibility. Its modern fleet and growing international presence make it an important alternative for travellers flying in and out of the Gulf. Base: Muscat International Airport Fleet: 13 Airbus A320 family aircraft Network: 6 domestic and 37 international cities across 18 countries Coverage: Routes across GCC, India, Bangladesh, Egypt, Nepal, Turkey, and East Africa Recognition: Named Oman's Most Trusted Brand in 2022 and 2023 While these carriers each provide valuable services and growing networks, Wizz Air Abu Dhabi had a distinct advantage in its model: direct links to secondary cities across Eastern Europe and Central Asia, ultra-low fares, and a scale of operations that blended affordability with wide geographic reach. No single airline currently replicates that mix,meaning the void it leaves behind may take time to truly fill. Strategic Blow to Abu Dhabi's Aviation Vision Wizz Air Abu Dhabi was more than a commercial venture,it was a pillar in the capital's broader ambition to become a hub for affordable international travel. The partnership with ADQ was emblematic of the UAE's strategy to diversify its aviation ecosystem, previously dominated by long-haul luxury carriers like Etihad Airways. Wizz Air's low-cost operations: Expanded Abu Dhabi's connectivity to new markets. Brought in new demographics of visitors, including tourists from Eastern Europe and students from South Asia. Enabled Abu Dhabi to compete with Dubai and Doha as a transit point for budget-conscious travelers. With the airline's exit, Zayed International Airport loses a key enabler of low-cost connectivity. Authorities may now have to consider financial incentives, landing fee reductions, and targeted route subsidies to attract alternative operators that can plug the emerging connectivity gaps. FAQs: Q. Why is Wizz Air Abu Dhabi shutting down? Due to operational challenges including airspace closures, engine wear in extreme heat, limited market access, and supply chain issues. Q. When is the last day of Wizz Air Abu Dhabi flights? All operations will cease after August 31, 2025. Q. Which destinations will be affected? Over 30 cities across Eastern Europe, Central Asia, South Asia, and the Middle East, many of them underserved by other carriers. Q. Will other airlines replace Wizz Air? Alternatives exist (Flydubai, Air Arabia, SalamAir, Jazeera), but none currently match Wizz Air's network or pricing. Q. What made Wizz Air fares so cheap? A no-frills model, single aircraft type, high-density seating, off-peak flying, and leased fuel-efficient planes — all built for cost efficiency.
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Business Standard
14-07-2025
- Business
- Business Standard
Wizz Air exits Abu Dhabi amid instability and lack of market access
Wizz Air said it was exiting its Abu Dhabi operation to focus on its main eastern European market, after almost two years of turmoil in the Middle East wiped out any chance of making a profit there. Wizz, a low-cost carrier founded in Hungary for eastern European travellers, expanded first into western Europe, before opening a base in Abu Dhabi six years ago, and pinning its hopes for future growth on a major expansion into the Middle East. But it abandoned those plans on Monday, blaming recent geopolitical instability for frequent airspace closures and disruptions, which have hit travel demand, and meaning there was no hope for recovery at the loss-making unit. Wizz CEO József Váradi said returning to Wizz's "bread and butter" of central and eastern Europe, where it competes with Europe's biggest airline Ryanair, would boost profits. "We have been underinvesting in this market over the last few years. Now we can go back to the full spirit of continuously exploiting the market," he told Reuters. "These are the markets that we know work." Shares in the London-listed airline rose 2.6 per cent in mid-morning trade. The stock is down about 62 per cent over the last two years, hit by issues with Pratt & Whitney GTF engines which led to the grounding of some aircraft. Wizz has 280 aircraft on order from Airbus over the next five years, and Váradi said most of these would be deployed in central and eastern Europe, which accounts for about two-thirds of the airline's business, while Britain, Italy and Austria are just under 30 per cent, and Abu Dhabi had been about 5 per cent. He said there would be sufficient travel demand to sustain that size of fleet, whether Ukraine fully opens as a market once more, or not. "I think it would be great to have Ukraine," he said. Even before the heightened tensions in the region, Váradi said Wizz's low-cost model was struggling to work in Abu Dhabi because engines degrade faster in the hot, harsh environment, making its operations there less efficient. Secondly, Wizz had not been granted the market access it had been promised to India and Pakistan when it first decided to open Abu Dhabi, limiting the growth potential. Wizz, which had operated a joint venture with Abu Dhabi Developmental Holding company (ADQ), said it will stop local flights from there in September.
Yahoo
14-07-2025
- Business
- Yahoo
Wizz Air halts Abu Dhabi operations as instability threatens profits
Low-cost carrier Wizz Air said on Monday that it plans to suspend all locally based flight operations out of Abu Dhabi as geopolitics and operational developments test its margins. Zayed International Airport, in the Emirati capital, has long been overshadowed by its successful Dubai neighbour, the world's busiest for international travel. Wizz Air's decision to end operations out of its hub in Abu Dhabi, effective from 1 September, comes as it aims to focus on its core markets in Central and Eastern Europe, the Hungarian company said in a post on X. The announcement follows last month's 12-day war between Israel and Iran, which shook the region and sent airlines scrambling amid airspace closures. In a statement, Wizz Air CEO József Váradi said the company has had 'a tremendous journey in the Middle East'. But, he added, 'the operating environment has changed significantly.' 'Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions,' Váradi said. Wizz Air's Abu Dhabi subsidiary, created in partnership with the government-owned Abu Dhabi Developmental Holding Co., was its first operation established outside of Europe. Related AirBaltic CEO lauds new Starlink installation despite Musk controversy Wizz Air sees income hit by engine issues and grounded aircraft Abu Dhabi's airport authority didn't respond to a request for comment. Zayed Airport has been far outshone by Dubai International Airport. Last year, 92.3 million passengers travelled through Dubai, compared to 28.8 million for Zayed. Wizz Air's profits already had been falling before it decided to exit its Abu Dhabi operations and before an unprecedented Iranian strike on a US military base in neighbouring Qatar that shocked travellers in the region. The Arab Gulf states have long been viewed as a safe haven from the violence and instability in the broader Middle East. Last fiscal year, Wizz Air reported a 41.5% year-on-year nosedive in net profits — from €365.9 million to €213.9 million — though revenue increased by 3.8% to €5.3 billion. Wizz Air said the move would free up resources that would be redeployed to 'regions with greater long-term potential for sustainable growth and profitability". The airline's departure comes as the federation of seven sheikhdoms looks to encourage tourism and for other ways to diversify its economy beyond reliance on hydrocarbons. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
