Wizz Air ready for “transition year” amid EX-YU expansion


Wizz Air has said 2021 will be a “year of transition” as restrictions ease, although expects most will stay in place during the first quarter of the year. It comes as the budget carrier announced its fourth base in the former Yugoslavia, in Sarajevo, which will launch on May 20, as well as expansion elsewhere, with two new routes each to commence from Belgrade and Split. The Macedonian government has also announced the airline will introduce flights from Abu Dhabi to Skopje, although these are yet to be scheduled and confirmed by Wizz itself. “Wizz Air is even better positioned to deal with the uncertainties associated with Covid-19 and now with vaccinations being rolled out across our key markets we believe 2021 will be a transition year out of the Covid-19 crisis”, the carrier’s CEO, Jozsef Varadi, said.

Wizz Air has temporarily suspended a number of routes from former Yugoslav markets and drastically reduced its frequencies, however, the majority are set to be restored once demand for air travel returns. Markets in the former Yugoslavia are expected to recover faster for the airline as the majority of Wizz Air’s routes from the region rely heavily on VFR traffic (visiting friends and relatives), which is expected to restart first post-Covid. “The initiatives we are implementing in our business have a very singular focus: enabling the company to emerge from the Covid-19 context as a structural winner. Our ambition is to fully restart our operations as soon as travel restrictions reduce, at all times protecting the health of customers and employees”, Mr Varadi noted.

Wizz Air flew 81% fewer passengers this January than it did in the same month last year, with load factors down to 61%. During the fourth quarter of 2020, it handled 2.2 million passengers, down from ten million, and registered a net loss of 116 million euros. “We remain focused on optimising our cost structure and cash burn”, Mr Varadi noted. He said the airline is “even better positioned” to address the uncertainties in the air transport sector. “Our confidence has meant we have continued to invest in our fleet, in our network, and in the leadership and governance of the company”, he said. Wizz has expanded its all-Airbus fleet to 137 aircraft, with five arriving late last year. Mr Varadi claims that the recent launch of new routes across Wizz Air’s network has been done without materially increasing the airline’s overall cost base.


Comments

  1. Anonymous09:02

    At least they are growing in the region

    ReplyDelete
    Replies
    1. Anonymous09:21

      It's great to see at least one airline expanding.

      Delete
    2. Anonymous10:37

      Expanding on a scheduled basis, not on real flight.

      Delete
  2. Anonymous09:02

    Varadi was saying how everything will be fantastic months ago.

    ReplyDelete
    Replies
    1. Anonymous09:36

      Yeah, he’s overly optimistic and has very bold statements. He has amazing political skills, sometimes I’m wondering why is this guy not a politician.

      Delete
    2. Anonymous09:37

      Agree. Reading what this guy is saying is like I am reading big president's interview.

      Delete
    3. Anonymous09:43

      I think he is making things look better than they actually are.

      Delete
    4. Anonymous12:37

      Guys above... In order to be a CEO the expectation from shareholders is to see growth all the time even in the darkest times, then when it doesn't happen you explain the variances so Varadi is just playing the game of "papir trpi sve" in order to shed some light to the situation and remain CEO. If he was honest shareholders would be concerned and would get him removed.

      Delete
  3. Anonymous09:04

    "registered a net loss of 116 million euros"

    wow

    ReplyDelete
    Replies
    1. Anonymous09:07

      Their LF is something OU and JU can only dream of in these circumstances.

      Delete
    2. Anonymous09:12

      What's the point of those LFs if they are losing more money than both of those airlines?

      Delete
    3. Anonymous09:22

      Compare how large is JU and OU with Wizz. And you know these 2 airlines probably lost more then 100 mil. in 2020.

      Delete
    4. Anonymous09:27

      Are you saying it’s better to fly empty planes than to have some people buying tickets? I’m missing the point.

      Delete
    5. Anonymous09:30

      Are you trying to say it’s better to fly empty planes than to have someone buying the tickets? I’m missing the point.

      Delete
    6. Anonymous09:40

      My point was, Wizz loses less money then these two airlines.

      Delete
    7. Anonymous10:34

      The majority of these are not actual passengers but booked tickets where the owner decided not to travel. Real seat load factor is way worse than this.

      Delete
    8. Anonymous10:49

      Well, even better for the airline. It’s like a donation.

      Delete
    9. Anonymous10:55

      Yes but then you keep quiet that you live on donations and don't go out bragging about it.

      Delete
    10. Anonymous10:55

      Don't forget that Wizz lost all this money after firing almost all of its staff in some countries. When lockdown started in Serbia all pilots and crew were fired the same day. JU and OU did not do that and they still had to pay salaries and so on.

      Delete
    11. Anonymous11:31

      @anon 10:55
      Don’t spread false information. They didn’t fire all their crew in Belgrade.

      Delete
    12. Anonymous11:34

      They did when the lockdown started. They hired them back once they resumed flying

      Delete
    13. Anonymous11:39

      Not true either. My good friend is W6 crew in Belgrade. Has been employed the entire time.

      Delete
    14. Anonymous14:57

      20 days unpaid every month. If you can call it employment...

      Delete
  4. Anonymous09:04

    Could we see any new routes?

    ReplyDelete
    Replies
    1. Anonymous09:06

      I think 13 from ex-Yu is quite good.

      Delete
    2. Anonymous09:23

      I hope for SPU/DBV -BUD. We definitly need Wizz on these.

      Delete
  5. Anonymous09:08

    Let's see if any of these new routes launch.

    ReplyDelete
  6. Anonymous09:13

    They have rich backers so it's easier.

    ReplyDelete
  7. Anonymous09:13

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

    ReplyDelete
    Replies
    1. Anonymous11:02

      Many? According to the official Eurocontrol statistics Wizz operated 2% of its capacity in January (compared to January 2020). And it's even worse as the got another 20 aircraft since then.

      Delete
    2. Anonymous10:38

      That's not true, it operated 19% of its capacity.

      Delete
  8. Anonymous09:14

    So they expect to come out as winners from all of this?

    ReplyDelete
    Replies
    1. Anonymous09:19

      Waradi keeps on saying that but in the end they keep on cutting routes, suspending bases and firing people. It's all PR.
      It looks like there won't be a summer season this year so I don't see what they are going on about.

      Delete
    2. Anonymous09:20

      +1 last anon

      Delete
    3. Anonymous09:40

      Considering who their owner is, they probably will come out as winners.

      Delete
    4. Anonymous10:56

      They are a publicly traded company so their shareholders have to be careful about injecting funds, it could either dilute their ownership or lower the value of their stock.

      Delete
  9. Anonymous09:15

    Wish them all the best!

    ReplyDelete
    Replies
    1. I am wondering, if they get subsidies everywhere, falls they will cancell flights, will they return money and pay full price for service for instance in Sarajevo? If not, why then?

      Delete
  10. Anonymous09:16

    they are nothing but gambling

    ReplyDelete
    Replies
    1. Anonymous09:20

      That is exactly what they did with announcing new flights from BEG last year which they later on cancelled.

      Delete
    2. Anonymous10:57

      Did Bosnia even start with the vaccination process? Serbia vaccinated close to 8% and there is still no indication of travel restrictions being lifted. I don't think this Wizz base will happen until covid passes.

      Delete
    3. Anonymous11:20

      Is Serbia giving two shots of a vaccine per person, or did it go the British way, ie giving one shot, but instead to twice more people?

      Delete
    4. Anonymous11:24

      Two shots. Second shots will start to be administered from 9th February.

      Delete
    5. Anonymous11:35

      Yes the government said that who gets the first will have the second guaranteed

      Delete
    6. Anonymous12:56

      Exactly, as soon as they vaccine you a dose is "left aside" to cover the second vaccination. However, we have nor surpassed 500k vaccinated people and we got 1.1 million doses. That means we are reaching the end, though more Pfizer and 800k AstraZeneca should be arriving soon. And I guess Sputnik and Sinopharm will hopefully come soon, too.

      Delete
    7. Anonymous15:24

      Interesting. Thanks. And was the Chinese vaccine a gift (a so-called vaccine diplomacy) or was it sold to Serbia by China?

      Delete
    8. Anonymous15:26

      Paid but at discounted price. Chinese vaccines are most expensive anyway. Over 100 dollars.

      Delete
    9. Anonymous15:28

      Thanks. Did I understand correct that the price for Serbia for a single dose of the Chinese vaccine was over 100 USD? Are you sure?

      Delete
    10. Anonymous15:34

      No, I'm saying that the market price is over 100 USD for two doses for Sinopharm vaccine. It's the most expensive vaccine out of the ones available. But this is an aviation site so we should stick to the topic.

      Delete
    11. Anonymous15:49

      Thanks. To stick to the topic I will just say that I was curious because Azerbaijan bought 4 mln doses of another Chinese vaccine CoronaVac for the current market value of a new Embraer 175 (27 mln USD) and Ukraine 1,9 mln doses for the current market value of a new Airbus 220-100 (34 mln USD).

      Delete
    12. Anonymous14:12

      Astra Zeneca will not vaccinate twice because the second shot is without effect .
      Their vaccine is faulty and only works 50 to 60 percent .

      The Chinese vaccines are working 75 percent and the Russian one 92 percent .

      Delete
  11. Anonymous09:20

    Looks like W6 will be winners after the crisis while exyu national airlines and pretty much every flag carrier in Europe will be the losers.

    ReplyDelete
  12. Anonymous09:37

    Would love to see them expanding their network in Ljubljana!!

    ReplyDelete
    Replies
    1. Anonymous09:37

      they should first create one

      Delete
    2. Anonymous09:41

      For that to happen, Ljubljana would have to approach them with a good deal. Like Sarajevo.

      Delete
    3. Anonymous09:47

      Skobir has been in talks about airline base since Adria bankruptcy. How can SJJ attract wizz since mid December when they announced they are in talks over base. And LJU is way bigger market than SJJ. Something has to be wrong with LJU management. Or is Skobir just lying about it

      Delete
    4. Anonymous09:57

      They've been saying they are in talks with some important airline for years.

      Delete
    5. Anonymous09:58

      I dont believe him

      Delete
    6. Anonymous10:13

      How is LJU exactly much bigger market than SJJ?

      Delete
    7. Anonymous10:33

      Compare the two cities and you will see

      Delete
    8. Anonymous12:53

      Well, that´s what Im doing, Sarajevo is a bigger city than Ljubljana, in a country that is bigger than Slovenia, the number of tourists both cities get is quite similar (or at least it was in 2019), and now when Adria is gone, both cities can compete on equal terms, as Sarajevo didnt have a national airline for years. The advantage of Ljubljana is that of course it is in the EU, and in a richer country, but on the other hand it is smaller than Sarajevo and Bosnia, and has Zagreb very close.

      Delete
    9. Anonymous13:19

      Not to mention it's not too difficult to drive from Slovenia to MUC/VIE/VCE, as opposed to SJJ, where even a drive to BEG takes 5h.

      Delete
    10. Anonymous13:51

      Ljubljana had around 280k population in 2017, while for Sarajevo there were 275k in 2013, and the number has probaby decreased. Plus you have Kranj, Škofja Loka and Kamnik right next to LJU. So almost 350k people. Whole Slovenia had 4,7 million tourists. And 80% of them go to Ljubljana, Bled and Postojna, all really close to LJU. Ok, most of them come by car, and around 30% by plane. Slovenia has the second biggest economy in ex yu, which means more business travelers. And as you said way richer country, and more people can afford to travel. So LJU is bigger market than SJJ

      Delete
    11. Anonymous14:20

      Guys, don't forget that BiH has 4 international operational airports, which is a lot for a country given its size and population.

      Delete
    12. Anonymous14:21

      Sarajevo is clearly a bigger market. Gasto community is huge, and Slovenia is much more accessible by road transport from Central and Western Europe.

      Delete
    13. Anonymous14:24

      Uh no its not bigger market

      Delete
    14. Anonymous14:26

      Alright if you say so

      Delete
    15. @Anon 13:51 Everything you wrote in your comment is false. Ljubljana was and still is smaller than Sarajevo. 275k Sarajevo inhabitants is the population of only 4 municipalities of Sarajevo (strictly central, Stari Grad-Centar-Novi Grad-Novo Sarajevo-), after the city had administrative reform in the 90´s. The rest of Sarajevo urban municipalities are part of the Sarajevo Canton and have the same borders like they did in Ex-Yugoslavia, these had in total 413.000 inhabitants in 2013. Another false news is your assumption that the population of Sarajevo is decreasing, because it is actually increasing. Sarajevo Canton has had more than 420.000 inhabitants as of last year. Additionally, the areas that used to be part of Sarajevo before the war in Bosnia, that are not part of Sarajevo Canton today and are called "East Sarajevo" had a population of 61.000 in 2013 (and they are growing). That gives you a total of 474.000 inhabitants of Sarajevos municipalities based on the ex-yu borders of the city prior to the war. As Sarajevo is growing, that number is closer to 500k today. And this number is before adding any surrounding municipalities that do not belong to Sarajevo (like you added to Ljubljana). So nope buddy, false statistics won`t make Ljubljana bigger than Sarajevo, but kudos for trying.

      Delete
    16. Anonymous23:09

      Well, at least the guy tried.

      Delete
    17. Anonymous08:43

      @Flyer787: Fully agreed :) Ljubljana is more in the range of Banja Luka and Novi Sad, than Sarajevo, when it comes to size. And also its not true what he said about tourists in Ljubljana. Their official statistics bureau says Ljubljana had 1.1 million tourists in 2019, whereas Sarajevo had 667.000 without a national airline and without proper lowcosters. Lets see how LJU and SJJ will do in 2021 and 2022 :)

      Delete
  13. Anonymous09:38

    IATA just said that travel will at 50% of 2019 levels.

    ReplyDelete
  14. Anonymous09:40

    Such a shame they’re suspending some of the ex-Malev routes from BUD in the balkans, right after the subsidies end.
    TIA, PRN and SJJ were full of self-transfer pax.

    ReplyDelete
    Replies
    1. Anonymous09:46

      They were full but prices were so cheap it probably makes no sense to operate these routes.

      Delete
    2. Anonymous09:46

      I mean they make no money on the routes.

      Delete
    3. Anonymous09:54

      On the other hand they’re performing a stunt in Norway and flying empty planes, thinking people will fly an airline that’s not complying by their labor laws. A lot of negative press must have been very effective to the general public.

      Delete
  15. Anonymous09:59

    Transition year is marketing speak for bad year.

    ReplyDelete
  16. Anonymous10:02

    I don't want to be negative but I think most routes announced yesterday, including these new ones from BEG and SPU will be cancelled or delayed.

    ReplyDelete
    Replies
    1. Anonymous10:12

      I'm having that feeling as well. But let's wait and see.

      Delete
    2. Anonymous10:28

      I really doubt for these from SPU. They succed on their Dortmund route in 2020. It was only canceled during the winter.

      Delete
    3. Anonymous11:20

      which new routes? did i miss something?

      Delete
    4. Anonymous12:17

      SPU-Gdansk/Oslo and BEG-HAM

      Delete
    5. Anonymous16:21

      Belgrade to Oslo is also new

      Delete
  17. Anonymous10:04

    I would really like to see them expand in continental Croatia.

    ReplyDelete
    Replies
    1. Anonymous10:12

      They tried out of Osijek.

      Delete
    2. Anonymous10:19

      I was thinking more about Zagreb

      Delete
    3. Anonymous10:38

      They also tried in Zagreb many years ago but were chased away.

      Delete
    4. Anonymous11:36

      wondering whats left in Memmingen and could work for Wizz year round (!) : Pula, Rijeka, SPU , DBV, Osijek

      crazy how there is no ZAG yet from there

      Delete
    5. Anonymous11:48

      Anon 11:36

      Perhaps it has something to do with government operating all these airports, while ZAG is operated by a private company?

      If you wanna further elaborate, think a little bit why private ownership is praised in all business sectors over state ownership.

      Delete
    6. Anonymous12:04

      @11.46 SMFH

      Delete
    7. Anonymous12:06

      @11.48 Eureka! then you should shut down OU if you are so eloquent

      Delete
  18. Anonymous10:04

    My guess is Wizz will open a base in PRN next.

    ReplyDelete
  19. Anonymous10:05

    I'm really crossing my fingers for the new Abu Dhabi flights especially since Abu Dhabi Airport is in the city unlike Dubai World where they flew from. I remember Tuzla saying in the past how they want flights to Dubai and they even held talks with FlyDubai. So I'm really hoping we see AUH-TZL :D

    ReplyDelete
    Replies
    1. Anonymous10:13

      Didn't Air Arabia fly to Tuzla from Dubai or Sharjah?

      Delete
    2. Anonymous10:20

      They did for a few weeks but it was completely disorganized and sold through tour agencies.

      Delete
    3. Anonymous11:18

      dont worry Ex-Yu from Abu Dhabi will come. BEG, SKP and one bosnian airport for sure

      Delete
    4. Anonymous11:25

      Sarajevo would make most sense out of all Bosnian airpots, having in mind how many Arab tourists flock to Sarajevo and Mostar every summer.

      Delete
    5. Anonymous11:31

      and maybe something like DBV seasonal if they are keen on seasonal routes

      Delete
    6. Anonymous11:32

      now that they are touching down in SJJ it is the most likely one yes

      Delete
  20. Anonymous10:13

    We want VIE-BEG!

    ReplyDelete
    Replies
    1. Anonymous10:19

      That is a route that is very much needed. It would end the monopolistic prices that JU and OS are charging us.

      Delete
    2. Anonymous10:32

      No! BEG needs leisure ULCC with W6.
      KVA, CFU, PMI, ADB, RAK, TFS or LPA, HRG, AQJ,ETM, etc

      Non-leisure:
      KEF, LPL, MRS, OPO, KRK, ODS, LED, BTS, LEJ.

      Delete
    3. Anonymous10:41

      So you want to keep monopolistic prices of JU and OS? You probably fly one in every four years.

      Delete
    4. Anonymous10:59

      Aaaaaactually I'd love to see Lauda launch BEG-VIE. Now that would be fun.

      Delete
    5. Anonymous11:33

      Lauda is being shut down as a separate brand, so I doubt that could happen during that process.

      Delete
  21. Anonymous10:31

    He is still dreaming but spin doctoring will not help the situation this year either. Nothing shows that LCCs will be better off after the pandemic. Colossal stratetic mistakes he made so far are nothing to be proud of. His remaining employees can't survive on a non-paid "holiday" much longer while the airline is practically grounded for Laci of demand.

    ReplyDelete
    Replies
    1. Anonymous10:35

      *lack of demand

      Delete
    2. Anonymous11:26

      Last anon: and still Wizz and likes are able to lend money on the market from investors as investors think they will be able to repay, while legacies need state aid (for many of them the aid is in the form of equity, as these legacies in now way would be able to repay any loans).

      Delete
    3. Anonymous15:01

      And which ones have more source: investors or states? Plus investors will stop investing when they won't see returns, while states will keep aiding even hopeless companies.

      Delete
  22. Anonymous11:11

    I am looking at BEG summer flight schedule and it looks like Wizz reduced its based units from two to one (it has scheduled slightly less than half the number of 2019 flights). Anyone having information about it?

    ReplyDelete
    Replies
    1. Anonymous11:46

      They have 38 weekly flights operated by BEG based aircraft and 4 weekly by Wizz Air UK. That is impossible with just one based aircraft so they will definitely keep two.

      Delete
    2. Anonymous14:33

      Anon 11:46

      GDS shows 592 departures in 28 weeks between April and October, apart from the ones operated by Wizz UK. This number was 1220 in 2019. That means 21.15 departures per week (if you remove 4 flights in total it becomes exactly 21 departures per week, total capacity of one unit). Are you sure you do not count return flights in this 38 weekly flights?

      Delete
  23. Wizz Air is launching Prishtina-Karlsruhe/Baden-Baden starting 15 February.

    ReplyDelete
    Replies
    1. Anonymous11:27

      It's route resumption, no new route.

      Delete
    2. My bad. I should have said that PRN-FKB is relaunching/resuming 15 February.

      Delete
  24. in a way this increase hopes for Wizz in LJU . It shouldnt be two planes. one is enough. Four west european routes and two for the large exyu diaspora there you go ...

    ReplyDelete
    Replies
    1. Anonymous12:18

      They could easily base 2 a320 at LJU

      Delete
    2. Anonymous12:29

      LJU might work when W6 get their A321XLR in 2 years time and might launch flights to JFK or BOS. The A321XLR will be a game changer and regional influencer.

      Delete
    3. Anonymous13:15

      JFK/BOS from LJU? Ah well, why not fly to Antartctica as well.

      LJU is too small even for A320 to most European cities, let alone TATL.

      Delete
    4. Anonymous14:05

      Adria was flying to AMS with CRJ, then Transavia came with b737 and numbers exploded, Adria was flying with CRJ to SVO, then Aeroflot came and upgraded it to double daily a320 and numbers exploded. If i remember correct Adria was also flying with CRJ to MAD, then Iberia came and they upgraded it to a321 on some days, as route was supposed to do great, but then corona happened. British Airways wanted to fly with a319, then they upgraded it to a321. Adria was flying to Berlin with CRJ, and failed, then Easyjet came, started with a319 seasonal, and before the route was launched they upgraded to year round and started to fly with a320 on some days. Why did Adria failed on most routes? Becouse it was expensive as hell and nobody wanted to fly with them. Almost everyone i know travels from other airports, becouse there are tickets much cheaper. Even i fly from other airports, becouse LJU is more expensive than other airports. Now image if tickets were much cheaper, like wizzair fares.

      Delete
    5. Anonymous14:27

      And how is this related to Wizz flying from LJU to JFK?

      Delete
    6. Anonymous14:30

      Look at second sentence

      Delete
    7. Anonymous14:32

      It says about how Iberia came and operated A321 some days.

      Delete
    8. Anonymous14:34

      ˝LJU is too small even for a320 to most european cities˝

      Delete
    9. Anonymous14:44

      I am very well aware of that, i was refering to anon 12:29 and 14:05.

      Delete
    10. Anonymous14:45

      Nvm, i misunderstood.

      Delete
    11. Anonymous15:31

      I will be very intersting to see what will Wizz do with their A321xlr.

      Delete
    12. Anonymous17:21

      Váradi once said: “The XLR will extend our outstanding value and service proposition on routes of seven to eight hours of flying,”.
      Starting 2023, the routes will be changing so I think they will start announcing the new long-hauls by the end of next year and start selling tickets in 2023.

      Delete
  25. I agree, Wizz is positioning itself in the right way targeting ex yu but wanting to have 'first mover advantage'. Even Velja Nevolja noted that in his report few days ago.

    ReplyDelete
  26. Anonymous16:59

    Is Wizz really doing that well? Let's check some facts:

    Wizz is ranked 76th in European airline flight operations in the 3rd week of January 2021:

    source: https://www.eurocontrol.int/sites/default/files/2021-01/covid19-eurocontrol-comprehensive-air-traffic-assessment-2112021.pdf

    - Turkish Airlines had the highest number of flights with 560 flights on Wed 20 January (-4% compared to Wed 6 January with -21 flights),
    - Air France (364 flights, -16%, -68 flights),
    ...
    - Ryanair ranked 23rd (67 flights, -82%),
    - easyJet ranked 46th (37 flights, -77%)
    - Wizz Air ranked 76th (20 flights, -92%).

    Fact is, Wizz is now barely operational. Most of their glorious PR about expansion should be taken with at least a grain of salt. Caveat emptor if you plan on flying Wizz.

    ReplyDelete
    Replies
    1. Anonymous17:22

      Most probably by not flying they currently lose less money than by flying.

      Better tell me how much free cash they have accumulated?

      And how does that compare to airlines that you suggest to use? And which are these?

      Delete
    2. Anonymous18:25

      The main point is that other companies are not releasing victory statements every other day while in fact barely operating like Wizz Air. Big words about expansion, in reality huge cuts and the majority of expansion not happenning. Smoke in the mirror and most people started to realize it.

      Delete
    3. Anonymous18:32

      @Anon 17:22 "Most probably by not flying they currently lose less money than by flying."

      Translating that logic into advice for Wizz management and investors would sound like this: stop all flying and close down the company to minimize losses and get out while you can. Great advice, thank you!

      Delete
    4. Anonymous18:49

      Last anon:

      No. Temporarily on many routes you lose more money by flying compared to having your planes stored. And this is what Wizz does without my advise.

      If it were to last forever, than yes, it would make sense to close down the company, but because it will not last forever, your reasoning is wrong. It is only a matter of getting through that period with as little losses as only possible.

      Do you know a single pax airline that currently engages all its equipement 100%? They are all doing what I said more or less.

      Do you know a single airline that is in an expansion mode?

      Is there a point in flying with 14% LF?

      Delete
    5. Anonymous19:36

      There is a point for government owned or quasi-govt owned national carriers (LH, AF, BA etc). Governments are making sure they will survive regardless of how it takes for market to recover by pouring dozens and if needed, hundreds of billions. Others can keep offering €500 million bond issues for a while, until investors realize governments are not going to pour all those billions into legacies without shortening the regulatory leash on ULCCs. EU will protect legacies and there is only one parachute on board, so ULCCs will have to jump without one. Good luck on the long way down.

      Delete
    6. Anonymous19:53

      First, those investors have access to more money than many governments, including in particular ex-Yu governments. Just compare interest rates that are paid by Ryanair and that paid by ex-Yu governments.

      Second, those governments have nowadays a huge chunk of their money from investors and the investors will ask themselves how some of those governments are going to repay all those money, they pump among others into airlines, including those inefficient already before covid. Wizz was efficient all the way.

      Third, ULCC bring countries a lot of profit. There is more than one parachute. EU countries are now pouring billions left and right. Money poured just into airlines is nothing compared to the rest. Just look, all EU is more or less closed to outside world and no government cares how will this impact their airlines. Airlines are a very small part of an overall picture.

      Delete

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