Wizz Air expects normal operations from July


Low cost carrier Wizz Air, which boasts bases in Skopje, Tuzla and Belgrade in the former Yugoslavia and employs hundreds of locals, expects normal operations, which have been hit by the coronavirus Covid-19 outbreak, to be reinstated by July. The airline’s CEO, Jozsef Varadi, said, “The situation in April will be similar to the one in March and which flights get cancelled could change day by day but normal services could be restored by July. Wizz Air is operating 20% fewer flights than scheduled and out of its 121 planes, ten are grounded. No employees have been laid off, but some staff have been placed on leave”, Mr Varadi said. Wizz Air has been forced to suspend all operations in the former Yugoslavia due to the closure of airports at its three main markets in the region.

Mr Varadi noted the no frills airline is in a good position to weather the crisis. “According to industry studies, Wizz Air is one of the strongest airlines in the world in terms of liquidity and solvency. So, when the crisis really hits, it will hurt others much more than us. If we wouldn’t fly a single flight, we could still finance ourselves for about three years. Many of our competitors have only one to two months of liquidity, many are already trying to get loans or are negotiating with governments for financial aid, otherwise they will not be able to survive. And even if they get that help, their plans will change dramatically because the money will have to be repaid. We expect that weaker airlines will disappear or continue to weaken, while stronger ones will be able to run into significantly better market positions after the crisis”, the CEO said.

The head of Wizz Air believes airlines such as Norwegian Air Shuttle, Alitalia and even Lufthansa will face significant problems in the coming months. “Several airlines have serious liquidity problems. The credit market has crashed, so they won’t be able to raise money there. If someone wants to borrow today, it costs considerably more than two months ago. On the other hand, banks aren’t sure if they should even lend money to airlines at this point. This is a basic problem, but it is currently difficult to predict what will happen to these companies”. He added, “We have always lived by a “cash is king” principle, leaving big reserves. The aviation industry is susceptible to numerous shock situations, just to mention epidemics, the conflict in Ukraine or the current crisis. We may call it Wizz Air’s management philosophy, but I think this industry should operate with significantly more cash than would normally seem reasonable. On one hand, it makes us more resilient in times of crisis or even in a weaker economic environment. On the other hand, we can act immediately if a strategic opportunity opens up”.




Comments

  1. Anonymous09:05

    Bad news for Wizz haters.

    ReplyDelete
    Replies
    1. Anonymous09:07

      No one hates Wizz here, we just dislike it when they ask for preferential treatment which distorts the market.

      Delete
    2. Anonymous09:13

      Unlike others who get government subsidies. That doesn't distort the market.

      Delete
    3. Anonymous09:31

      no one? see the first comment in the last Skopje article ....

      Delete
    4. Anonymous09:57

      @9.07 tell that to all the ex-yu airlines

      Delete
    5. Anonymous10:09

      You simply can not compare ex-YU carriers like OU, JU or YM with Wizz Air. They play a vital role for the country, look at JU using its A330 and A320 to bring in help from China. They fly to vital parts around the world which are of great importance for the country, diaspora and the economy. Without them you get SKP or TZL where you get flights to secondary gasto airports.

      In the end, someone will have to pump millions into airlines unless they are stable and strong to stand on their own. In one case it's the governments and in the other IndiGo.

      Delete
    6. Anonymous10:16

      Well I will let you know that Wizz Air has flown an A321 to Shanghai as well to bring help to Hungary soo

      Delete
    7. Anonymous10:33

      Yes and they are a Hungarian airline which makes sense, from how many different countries did they do the same? Please let me know because from what I can see the list is not long, then again the list is there but it's empty, no airport, no country, nothing, only Budapest.

      Delete
    8. Anonymous10:36

      It is not Wizz Air's job to negotiate donations or purchases from China. Same way Air Serbia didn't negotiate it. I'm sure if the Macedonian government secured help from China, Wizz Air would pick it up.

      Delete
    9. Anonymous10:36

      Except JU flying to JFK (and losing money with this) I am not really aware what other @vital parts around the world@ are the ex yu national carriers flying to. They all just fly to European Airports, which is not @the world@.
      It is very debatable of what @great importance@ they are to the country, diaspora and the economy.

      Delete
    10. Anonymous10:48

      So you think it's better to rely on Wizz Air like North Macedonia did and the moment they want to diversify the offer to be blackmailed by Wizz Air?
      JU at least flies to main airport like CDG, FCO, ARN, IST... all markets Wizz would never fly to if they were to dominate here. Not to mention that JU sells locally manufactured products and has its planes registered in Serbia, two things Wizz doesn't.

      Anyway, you have Wizz in both BEG, INI and PRN so take your pick where you want to fly from. They are not restricted in Serbia in any way. They threw a hiss fit when they were forced to pay the same as others. That's their problem. In Belgrade they actually have to try and fight for passengers in stead of getting them on a silver platter like in some other places.

      And anyway, governments around the world have rushed to protect their national carriers which shows that there is massive value at having them and not solely relying on the pink gasto express.

      Delete
    11. Anonymous10:49

      Your hate for this airline is astounding.

      Delete
    12. Anonymous10:50

      And it's always the same guy...

      Delete
    13. Anonymous10:52

      And it's always the same guy defending Wizz Air while presenting no concrete arguments.

      Delete
    14. Anonymous10:56

      it is crazy how much this person despises Wizz Air. Same story every time there is some news related to them.

      Delete
    15. Anonymous11:12

      You mean the same way people attack legacies each time using same old arguments?

      Delete
    16. Anonymous11:49

      Comparing with other LCC, worst airline, it starts with the web page, slow, faulty...
      Aircrafts, new but verydirty and no space at all, the crew, no smile, not helpful, arrogant, I hope they shut down

      Delete
    17. Anonymous12:06

      lol

      Delete
    18. Anonymous12:39

      "JU sells locally manufactured products"...

      Of course the chips from Cacak and sandwiches with Serbian ham on JU's flights bring huge revenue to the Serbian economy and are thus a major argument in favor of JU

      Delete
    19. Anonymous14:18

      Don't forget that all drinks served onboard are also locally manufactured.

      Delete
    20. "Of course the chips from Cacak and sandwiches with Serbian ham on JU's flights bring huge revenue to the Serbian economy and are thus a major argument in favor of JU"

      Let's say that a bag of crisps is sold to Air Serbia for 0.2€. That means at least 300-400k EUR in annual revenue for the crisps manufacturer. Not exactly a small figure. Apply the same for water, sandwiches etc. and you quickly reach several million EUR that pour directly into the Serbian economy.

      Delete
    21. Anonymous19:19

      Imagine the amount in summer when they operate 13 to 15 charter flights. How much of it is distributed on those flights. That's how JU helps when you look at the big picture.

      Also don't forget that JU brings a large amount of devize because all of their international tickets for transfers are in Euros or Dollars.

      Delete
  2. Anonymous09:07

    I hope earlier

    ReplyDelete
  3. Anonymous09:14

    Good to see Wizz Air isn't in any major problem.

    ReplyDelete
  4. Anonymous09:14

    I'm surprised how many flights they are still operating all things considered.

    ReplyDelete
    Replies
    1. Anonymous09:24

      Yep. They were keeping the majority of their schedule running from SKP and BEG until the airports were closed. The only airport they voluntarily suspended flights was from Tuzla.

      Delete
    2. Anonymous09:27

      Which says a lot how profitable that base is for them.

      Delete
    3. Anonymous09:32

      strangely or not they were flying full to SKP til the last moment.

      Delete
    4. Anonymous10:15

      Of course they were flying full to SKP when PRN was shut down

      Delete
    5. Anonymous12:07

      give us a break pls

      Delete
    6. Anonymous14:11

      This is outdated. Almost all planes are grounded. They are operating from BUD, DEB, VIE, LTN, SOF, VAR and Romanian bases. Everything else is grounded. Maybe only 20% is flying and those planes are almost empty. Happens to have 1-2-3 pax on board, but also there are some routes (such as BUD-EIN with more than 100). Noone was sent home (fired) and noone is on unpaid leave so far (until May) except those ones who took it in March because they were scared of getting virus. But they will also be paid in April, even they are not flying. Wizz showed its' employees that in these shitty times it is better to be in Wizz, than in any Middle-Eastern sh*t.

      I watched the videos from Qatar cabin crew, quarantined. I was almost crying. They are maybe only company who never allowed its' employees (wherer crew or airport staff) to wear masks because it doesn't comply with workwear regulations.

      Etihad is firing hundreds of people. Emirates too. Conditions are so bad during the crisis.

      And us in Wizz - stable jobs, basic salary! But no layovers :D

      Delete
    7. Anonymous14:14

      Anon 10:15
      Wizz is always full! Having less than 90% of sold seats is always exception. Doesn't matter which base. Haters gonna hate!!! And once things are back to normal - everything will be full again. Diaspora can't come back for Easter(s). So everyone will come with first opportunity. I am so glad to see you dying for some bad news about Wizz, but there is bigger chance that you will stop hating Wizz than that you will read some bad news about Wizz!

      Delete
    8. Anonymous14:20

      Let's see what happens once Indigo is completely out of Wizz

      Delete
    9. Anonymous16:04

      Governments will save many national airlines that need cash. When governments give out handouts they usually set the rules that will help their critical national airlines survive, see Alitalia for example. Wizz has plenty of cash so no support to them. Indigo is not out of Wizz at all. Bill Franke basically confirms this:

      (on 20 March 2020): "Bill Franke, managing member of private equity firm Indigo Partners LLC, said the industry “desperately needs” some form of government support and that he was confident a deal would be reached. Indigo Partners also owns major stakes in Santiago, Chile-based JetSmart and Hungarian Wizz Air"

      Source: https://www.reuters.com/article/us-frontierairlines-indigopartners/frontier-airlines-private-equity-owner-sees-good-buys-in-industry-turmoil-idUSKBN2171A4

      Delete
    10. Anonymous19:20

      They own a stake but they put it up for sale.

      Delete
  5. Anonymous09:14

    I doubt the numbers of passengers flying will return to the same level immediately. They will likely offer a very reduced network for a while.

    ReplyDelete
  6. Anonymous09:23

    Comforting news for staff

    ReplyDelete
  7. Anonymous09:33

    well thats good to know

    ReplyDelete
  8. Anonymous09:48

    When they speak of July, they don't consider that even if the pandemic dies out by the beginning of summer, there will still be restrictions for people traveling around. Not a single country would risk a new outburst caused by new tourists. Same applies to workers.

    ReplyDelete
    Replies
    1. Anonymous16:01

      They actually believe the pandemic will severely go down in the next few weeks, almost fully eradicated within a month and a half and that they expect business to be back to "new normal" by July.

      Delete
  9. Anonymous10:03

    Post pandemic environment will gradually introduce laws to protect and support traditional airlines. Current crisis shows LCC model is not the way EU nations want for the future of aviation.

    ReplyDelete
  10. Anonymous10:11

    They are owned by JP Morgan, they come up as winners from every global crisis, world wars included.

    ReplyDelete
    Replies
    1. Anonymous13:46

      That's what they said for Lehman Brothers (1850-2008)

      Delete
  11. Anonymous10:33

    Looks like W6 will be winners after the crisis while exyu national airlines and pretty much every flag carrier of medium and small European countries will be the losers...

    ReplyDelete
    Replies
    1. Anonymous10:49

      Not really because all governments around the world will financially support their airlines giving them a breath of life.

      Delete
  12. This interview is 7 days old. So it is far more than 20% and 10 planes. Much more. On the other hand it is true Wizz has good finances.

    ReplyDelete
  13. Anonymous12:37

    if the personnel survive 3 month without salary

    ReplyDelete
    Replies
    1. Anonymous14:55

      Crew gets their salaries. At least March and April for sure. Everyone in the company got written prove of that. Unhappy?

      Delete
    2. Anonymous20:02

      Good but what for May, June and so on..,.

      Delete
  14. Hope they’re gonna go bankrupt! Sh.. airline with sh.. or no service at all, especially if there are cancellations, delays etc. By the way Italy - thank God - has helped already Alitalia, like the Scandinavians SAS, and Lufthansa has a considerable amount of cash! West-EU states will not leave their flagship carrier in trouble, like Hungary did with Malev!

    ReplyDelete
    Replies
    1. Anonymous13:47

      Bankrupt on your head!

      Delete
    2. Anonymous14:21

      Don't forget that Wizz tends to be extremely expensive at lest they are here in SKP

      Delete
    3. Anonymous14:52

      Noone wishes company with 5000 employees (read 5000 families) to go bankrupt. Not normal people at least.

      Delete
  15. Anonymous18:01

    lolololololol

    ReplyDelete
  16. Anonymous21:07

    Ich wünsche Wizz Air alles Gute für die Zukunft.
    Ich bin treuer Fluggast von euch. Bin sehr oft von Deutschland nach Serbien und Bosnien geflogen.

    ReplyDelete
  17. This wizzair is the worst airlines company I ever seen . I have booked in January tickets for Romania worth £400 and called them three times in last three weeks asking why not cancelled the flights in this unprecedented pandemic situation. They say is everything normal and I have to fly because they not cancel or I can cancel myself voluntarily and loose all the money I paid!!? So this wizzair is the only one company so far ignore the whole situation, for them everything is normal?? Every business I had direct debit, payment etc notify me and tell me about closures and canceling payments but wizzair leaving in another world ,they do not care at all, just wants to make profit in this crisis. So I hope they will lose everything, get bankrupt and never ever recover .

    ReplyDelete
    Replies
    1. Ovo nije tačno. Kada god je neka zemlja proglasila vanredno stanje wizz je odma prekidao letove i vratio 120% uplaćenih sredstava

      Delete

Post a Comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.