Emirates and Etihad will have to face a new competitor starting October 2020.
Wizz Air Abu Dhabi was granted national airline status by the United Arab Emirates and is going to be the third low-cost carrier operating in the gulf state.
The Hungarian budget carrier will send two “ultra-modern” A321neo aircraft to Abu Dhabi and will initially fly to six destinations: Alexandria, Athens, Kutaisi, Larnaca, Odesa and Yerevan.
With the addition of Wizz Air Abu Dhabi, competition for the dwindling number of travelers during this pandemic crisis will become brutal.
Wizz Air Opening A Base In Abu Dhabi
How confident is Wizz Air to push through with the decision to open a new base on foreign soil?
This is what Wizz Air Holdings CEO Józef Váradi had to say on the matter:
“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 isn’t unscathed by coronavirus disaster and like most airlines had to make redundancies and salary cuts and is currently operating at 3% of its pre-pandemic capacity.
But Váradi is still adamant that they have enough cash to weather the present downfall in demand for air travel.
“If the airline stays grounded for another 18 months, we would still be in business – that’s the level of liquidity that we have.”
With no positive outlook in air travel and no strong evidences of a vaccine turning up any time soon, what is Wizz Air Abu Dhabi betting on?
Not that we are complaining.
In fact this is beneficial as more jobs will be created and air fare in the region will be lower due to an increase in options for travelers to cherry-pick from.
But we continue to hear news of airlines filing for bankruptcy and there are rumors that Air Asia, which was consistently the leader of low-cost carriers, might be the next airline to fold.
So why is Wizz Air so confident?
Do they know something that the whole world doesn’t?
Let us know what you think in the comments on Facebook.