Hungarian budget airline Wizz Air is in talks with airports across Europe to secure airport slots from airlines in financial trouble, Chief Corporate Officer Owain Jones told Reuters at the World Aviation Festival in Lisbon on Oct. 13.
This follows Ryanair CEO Michael O’Leary’s similar comments in September. The rival low-cost carriers are positioning themselves to take advantage of a difficult period for European airlines.
Wizz Air eyeing opportunities as rivals struggle
“We are always negotiating deals with airports. That’s part of our business,” Wizz Air Chief Corporate Officer Owain Jones said at the World Aviation Festival in Lisbon on on Sept. 23. “He (Michael O’Leary) likes to think they’re the only ones doing that.”
Ryanair CEO Michael O’Leary said that he expected more rival carriers to fail as fuel prices continue to soar.
“I very much hope that jet (fuel) prices will rise faster into next year because that will accelerate the extent to which other airlines will fail…airlines who are currently loss-making will fail. It will accelerate the consolidation of Europe into four large airlines: BA (British Airways), Lufthansa, Air France and Ryanair.”
He added that Ryanair was already in talks with airports concerned that capacity would be cut by airline bankruptcies.
Wizz Air and Ryanair compete to expand
Both airlines have made recent moves to expand their operations, particularly in Central and Eastern Europe.
Jones said that Wizz Air is looking to expand further in Italy and Spain, reiterating that Central and Eastern Europe remains its core market. The airline has also scaled back operations in the Middle East to focus on its European presence.
Meanwhile, Ryanair has launched new routes in the Baltic region and plans to double its passenger numbers in the region over the next five years.
The expansion follows Latvian carrier airBaltic’s filing for Chapter 11 bankruptcy protection in September.
Wizz Air faces pressures despite expansion plans
Despite expansion plans, Wizz Air has not been immune to the financial pressures facing airlines due to fuel costs and global unrest.
In August, Aviation Week reported that Wizz Air had recorded a €198.2 million quarterly net loss, compared with a €38.4 million profit during the same period the previous year. The airline’s fuel expenditure also increased by 39.4% to €610.5 million.
Whether negotiations develop into new slots remains to be seen, as European airlines navigate an increasingly challenging environment.
