Wizz Air to establish Abu Dhabi airline via new joint venture
Wizz Air Holdings has reached agreement in principle for the establishment of a local airline in Abu Dhabi, it announced on Thursday, in partnership with Abu Dhabi Development Holding Company (ADDH).
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The FTSE 250 low-cost airline operator said the new airline would be its first airline established outside of Europe.
It said it intended that Wizz Air Abu Dhabi would be formed via a joint venture, with operations expected to launch in the second half of 2020.
The airline would focus on establishing routes to markets in which Wizz Air had existing, high growth operations - primarily central, eastern and western Europe - as well as the Indian subcontinent, the Middle East and Africa in the long term.
Wizz Air said it believed that the establishment of a “truly ultra-low cost airline” in Abu Dhabi could contribute to the continued growth of the United Arab Emirates capital as a “world-class cultural and tourist destination”.
It said ADDH's “deep rooted knowledge” of the local market, support and navigation in a new market for Wizz Air would be “invaluable”, and would help to boost the successful development of the new airline.
The establishment and start of Wizz Air Abu Dhabi remained subject to the agreement and entry into force of definitive documentation with ADDH, the receipt of all necessary internal and external approvals and consents, and the new airline satisfying all regulatory requirements of the UAE General Civil Aviation Authority to obtain an Air Operator's Certificate, among other things.
Wizz Air said that, with a fleet comprised of Airbus A321neo aircraft, the new airline would gain access to markets with a total of five billion customers across Europe and beyond.
The new airline's customer proposition would align directly to that of Wizz Air, with a singular focus on offering a superior value based quality air travel, built on the foundations of what the board described as “one of the world's greenest” aircraft fleets.
“We are proud that our first airline to be established outside of Europe is in Abu Dhabi, the capital of the UAE,” said Wizz Air chief executive officer József Váradi.
“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.”
Váradi said Wizz Air Abu Dhabi would be an incremental path of growth for Wizz Air, built on its successful ultra-low cost business model, bringing affordable travel to more customers.
“We believe the new airline has the potential to be a significant player in the region.”
At 1003 GMT, shares in Wizz Air Holdings were up 1.09% at 3,897p.