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Wizz Air’s decision to leave Abu Dhabi 'not a surprise', say aviation analysts
The airline announced that it would suspend operations from September 1 and exit the joint venture, citing stiff competition from other budget airlines
Low-cost carrier Wizz Air’s decision to cease operations in Abu Dhabi from September isn't expected to significantly affect affordable travel options, since UAE travellers already have multiple options from local and regional carriers, according to industry analysts.
Wizz Air Abu Dhabi on Monday announced that it would suspend operations from September 1 and exit the joint venture, citing the geopolitical situation in the region, regulatory challenges, and stiff competition from other budget airlines.
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“Not at all,” said Saj Ahmad, chief analyst at London-based StrategicAero Research, when asked if Wizz Air’s exit marks a setback for affordable travel in the UAE and the region.
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“Etihad Airways never set up a low-cost carrier for a reason. There is little market demand out of Abu Dhabi. The UAE is perhaps spoiled, in a good way, with the huge and explosive growth of stalwarts like flydubai and nearby rival Air Arabia. Add in the fact that the UAE has Emirates as well. There is plenty of vibrant choice for travel, both for destinations and cost,” Ahmad told Khaleej Times in an interview.
“The bottom line is that Wizz Air simply could not attract people to its business as a low-cost carrier. Its offerings are significantly inferior to the likes of flydubai and Air Arabia. People will not pay for bare bones travel that Wizz Air offered, and it’s no surprise they’re quitting the UAE,” he said.
Andrew Charlton, managing director at Aviation Advocacy, noted that the UAE’s aviation market is already highly competitive. While Wizz Air's exit may reduce competition among ultra-low-cost carriers (ULCCs), it won't significantly impact the broader low-cost carrier (LCC) segment. “From the airline perspective, a bit of consolidation is a good thing, but I think there is plenty of competition out there.”
Will new players step in?
Charlton doesn’t foresee other players stepping in to launch a new ultra-low-cost carrier to fill the gap left by Wizz Air Abu Dhabi.
“It is already a very competitive market with a lot of capacity in it, so I doubt it in the short term,” he said.
Echoing his industry peer’s comments, Saj Ahmad said, “In short, no. There is limited desire for such an airline. UAE travellers and those who use UAE airlines expect high quality, flexibility and the ability to mix their fares with services on board.”
He noted that Wizz Air leaving Abu Dhabi “does not leave a gap at all” because it tried to “create something that frankly didn’t exist.”
Not a surprise
Ahmad added that Wizz Air’s decision to leave Abu Dhabi is not a surprise.
“Wizz Air is in a world of hurt – it has suffered large-scale Airbus A321neo groundings due to continued and unending problems with its GTF engines, and in Europe, they are being absolutely battered by the powerhouse that is Ryanair,” he added.
Charlton said the UAE is a hard market; it was never going to be Wizz’s chief focus of attention, hence, it was struggling.
“There are other factors at play here, too. Most of all, Wizz is very badly impacted by the supply chain issues – its aircraft deliveries are behind schedule and many of their aircraft needed to go in for a very long engine overhaul process (that was not Wizz’s fault, but it has punched a big hole in their plans) so other parts of the Wizz empire that might better use the aircraft,” he said.
Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.
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