Wizz Air To Launch U.A.E. Subsidiary Based in Abu Dhabi

Wizz Air Airbus A320 (photo Wizz Air)

Central European ultra low-cost carrier Wizz Air has announced it will create a new subsidiary based in Abu Dhabi, the capital of the United Arab Emirates. Through a cooperation with the Abu Dhabi Development Holding Co. (ADDH), Wizz Air will launch a new carrier based at Abu Dhabi International airport and will focus on connection between the U.A.E. and the Indian subcontinent, Middle East and Africa. This new venture is targeting a market dominated by full-service carriers, but where tourism is experiencing tremendous growth, there is a very large migrant population and the large business community requires frequent and affordable connections to the other cities in the region.

The new airline, which will be 51% owned by U.A.E. interests, will commence operations in the second half of 2020 with a fleet of three new Airbus A321neo aircraft and is tentatively branded Wizz Air Abu Dhabi. The plan is to grow the airline to 50 aircraft within the next 10 years, Bloomberg reports.

"Wizz Air believes that the establishment of a truly ultra-low-cost airline in Abu Dhabi can contribute to the continued growth of Abu Dhabi as a world-class cultural and tourist destination. 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 the new airline," the company said in a statement.

Wizz Air Chief Executive Officer Joszef Varadi said this new carrier has the potential to be “a significant player in the region”.

This is the first time Wizz Air ventures outside of Europe: its traditional business model is based on providing very competitive fares on routes connecting Eastern and Western Europe, although it already flies to the Middle East with services from five Central and Eastern Europe airports to Dubai World Central airport in the U.A.E., the new developing hub in Jebel Ali, just outside of Dubai.

The move has been welcomed by Abu Dhabi Airports, whose traffic has declined due to the financial difficulties of its resident carrier Etihad Airways. According to U.A.E. media outlet “The National”, the airport is targeting a 1.4 million passengers growth by 2021, an almost 20% increase to the 7.7 million passengers currently transiting through the airport.

The new venture "is further testament to the Emirate’s robust aviation infrastructure," continues The National quoting Bryan Thompson, chief executive of Abu Dhabi Airports. "In addition to a strong transfer passenger programme, Abu Dhabi International Airport has also seen an increase in origin and destination traffic this year—remaining one of the fastest-growing airport hubs in the region."

Abu Dhabi International Airport is the only airport outside North America and Europe with a U.S. Customs and Border Protection PreClearance facility, therefore allowing its flight to the United States to be treated as domestic services once arriving at U.S. airports.

Etihad Airways is one of the three major carriers dominating in the region, with the other two being Dubai’s Emirates Airlines and Qatar’s flag carrier Qatar Airways. There is also a number of low-cost carriers based in the U.A.E., such as Dubai Government-owned FlyDubai and Sharjah-based Air Arabia.

Wizz Air Holding currently operates approximately 120 Airbus A320/A321 aircraft to 150 destinations in Europe, Africa and the Middle East. It has operated several subsidiaries in Bulgaria, Romania and Ukraine in the past but all of them have been incorporated into the main airline, that is operating under a Hungarian air operator’s certificate. A new subsidiary Wizz Air UK has been set up with a British air operator’s certificate in anticipation of the United Kingdom leaving the European Union in 2020.