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FR Complains About W6's Ownership To The EU  
User currently offlineju068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Posted (2 years 7 months 6 days 19 hours ago) and read 5437 times:
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Good evening,

Ryanair will place a complaint to the European Commission against its 'Hungarian' rival Wizz Air. Deputy CEO of Ryanair, Michael Cawley, claimed that Wizz Air violated the EU ownership rule.

According to the EU regulation, any airline registered in the Union must have a European majority owner. According to Ryanair, Wizz Air does not.

Cawley stated that the they got new information related to the ownership of Wizz Air which clearly leads them to conclude that the airline does not fulfil the EU criteria.
Cawley added that Wizz Air holdings are registered in Jersey on the Channel Islands, the two subsidiarities of which are the Ukranian and Hungarian carriers. Furthermore, the company is owned by another company registered in Malta, which is also owned by another company in Malta. There are four layers of Wizz Air owners, on top of it all there is a guy called Stuart Blackburn, who according to Ryanair, does not represent the European owners.

Ryanair added that they will submit the complaint to the European Commission today.

You can read the whole story here:
http://www.portfolio.hu/en/economy/r...each_of_ownership_rules.23786.html

It is interesting that it was Wizz Air who complained to the European Commission related to Malev's renationalization. I guess Ryanair is fighting fire with fire. Not to mention that Ryanair is pointing out to Budapest airport authority that they might lose their current biggest customer- again. I guess that this is another way to get lower fares at an airport.

I believe that this fight is going to be a dirty, and a very interensting one.

Ryanair 1, Wizz Air 0.

13 replies: All unread, jump to last
 
User currently offlineflycro From United Kingdom, joined Feb 2004, 375 posts, RR: 0
Reply 1, posted (2 years 7 months 6 days 18 hours ago) and read 5085 times:

If FR weren't worried about losing pax in Central and Eastern Europe they wouldn't be s**t stiring like this.

User currently offlineju068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Reply 2, posted (2 years 7 months 6 days 17 hours ago) and read 5001 times:
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Quoting flycro (Reply 1):

I think it's quite funny how Wizz Air complained that the subsidies from the Hungarian government to Malev were illegal when their own business might risk the same faith. I guess it's karma doing it's own thing.

However, it's quite interesting that Ryanair got these documents just now. I wonder if those papers were faxed by someone who used to work for Malev.


User currently offlinedhr From United Kingdom, joined Jun 2007, 117 posts, RR: 0
Reply 3, posted (2 years 7 months 6 days 17 hours ago) and read 4822 times:

It's funny that Ryanair is complaining about foreign ownership in Wizzair. If I recall who the investors are, they are a US company named Indigo Partners, who are owned by TPG. Ryanair is also part owned by TPG and a very prominent Board member of Ryanair has associations with TPG. Now Ryanair shareholders should have a pretty good idea who the sharholders are because if these guys sold out their shares in Wizzair, then it would be these guys Ryanair mentions.

A little complicated, but interesting information.


User currently offlineshamrock604 From Ireland, joined Sep 2007, 4175 posts, RR: 12
Reply 4, posted (2 years 7 months 6 days 14 hours ago) and read 4556 times:

Quoting dhr (Reply 3):
It's funny that Ryanair is complaining about foreign ownership in Wizzair. If I recall who the investors are, they are a US company named Indigo Partners, who are owned by TPG. Ryanair is also part owned by TPG and a very prominent Board member of Ryanair has associations with TPG. Now Ryanair shareholders should have a pretty good idea who the sharholders are because if these guys sold out their shares in Wizzair, then it would be these guys Ryanair mentions.

A little complicated, but interesting information.

Absolutely. There is far more to this than meets the eye. Ryanair and Wizzair have avoided each other rather studiously up to now. Ryanair have given no other airline such leeway in Europe up to now. They have fought easyjet, Norwegian, BmiBaby, Jet2, etc etc and mostly head on, on the same city pairs.

The space they have given Wizzair to expand is almost unprecedented.

Then, of course, there are issues of ownership of the two, which might suggest that the relationship is even cosier than it might first seem!

In any case, boo hoo Ryanair! They always claim they can beat anyone, offer lower fares than anyone else, and grow faster than anyone. Why they would feel the need to go crying to the courts is beyond me - they have always decried every other airline for doing the same.



Flown EI,FR,RE,EIR,VE,SI,TLA,BA,BE,BD,VX,MON,AF,YS,WX,KL,SK,LH,OK,OS,LX,IB,LTU,HLX,4U,SU,CO,DL,UA,AC,PR,MH,SQ,QF, EY, EK
User currently offlineju068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Reply 5, posted (2 years 7 months 6 days 7 hours ago) and read 4223 times:
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Quoting shamrock604 (Reply 4):
Why they would feel the need to go crying to the courts is beyond me - they have always decried every other airline for doing the same.

Maybe because in this case they are not fighting only the airline but the airport as well. With the possibility of Wizz Air getting in serious trouble they might finally get a favorable deal from Budapest airport.
This time, just like the last, Budapest airport refused to cooperate because they had alternatives. However with the case of Wizz Air's ownership being questioned, Budapest airport could potentially be running out of alternatives.

If Wizz Air really does have such problems and if they actually end up being closed down then the real winners will be Ryanair and the former employees of Malev.


User currently offlineshamrock604 From Ireland, joined Sep 2007, 4175 posts, RR: 12
Reply 6, posted (2 years 7 months 6 days 6 hours ago) and read 4108 times:

Quoting ju068 (Reply 5):
If Wizz Air really does have such problems and if they actually end up being closed down then the real winners will be Ryanair and the former employees of Malev.

True, but what about the consumer who Ryanair just love to pretend to champion?



Flown EI,FR,RE,EIR,VE,SI,TLA,BA,BE,BD,VX,MON,AF,YS,WX,KL,SK,LH,OK,OS,LX,IB,LTU,HLX,4U,SU,CO,DL,UA,AC,PR,MH,SQ,QF, EY, EK
User currently offlinebennett123 From United Kingdom, joined Aug 2004, 7605 posts, RR: 3
Reply 7, posted (2 years 7 months 6 days 5 hours ago) and read 4066 times:

Well they can all fly FR.

User currently offlinePanHAM From Germany, joined May 2005, 9376 posts, RR: 29
Reply 8, posted (2 years 7 months 6 days 5 hours ago) and read 4044 times:

I doubt that Wizz Air will be closed down by the EU, this would be a long legal process and in the meantime they have the chance to change ownership so that it is in line with the legal requirements, if needed.

This may then end with a fine, not more. Would be interesting to know who the actual owners are, when I nread "Ukraine" there's one country that comes into my mind instantly, which starts with a I and end with an n.

 



E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently onlineBurkhard From Germany, joined Nov 2006, 4397 posts, RR: 2
Reply 9, posted (2 years 7 months 6 days 4 hours ago) and read 3942 times:

Interesting to follow from my arm chair. I like Wizzair because they bring a little colour to Hahn. OK, no strong argument I agree.

User currently offlineshamrock604 From Ireland, joined Sep 2007, 4175 posts, RR: 12
Reply 10, posted (2 years 7 months 6 days 4 hours ago) and read 3893 times:

Quoting bennett123 (Reply 7):

Oh god no, I wouldnt wish that on the good people of Hungary. We had a taste of near domination by Ryanair here in Ireland, and we didnt like it!  



Flown EI,FR,RE,EIR,VE,SI,TLA,BA,BE,BD,VX,MON,AF,YS,WX,KL,SK,LH,OK,OS,LX,IB,LTU,HLX,4U,SU,CO,DL,UA,AC,PR,MH,SQ,QF, EY, EK
User currently offlineju068 From Vanuatu, joined Aug 2009, 2640 posts, RR: 6
Reply 11, posted (2 years 7 months 6 days 3 hours ago) and read 3787 times:
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Quoting shamrock604 (Reply 10):
Oh god no, I wouldnt wish that on the good people of Hungary

Haha me too actually. Though I was a fan of Malev I would still rather have Wizz Air than Ryanair dominate in the region- even if they were responsible for Malev's closure.

Quoting PanHAM (Reply 8):
I doubt that Wizz Air will be closed down by the EU, this would be a long legal process and in the meantime they have the chance to change ownership so that it is in line with the legal requirements, if needed.

Not to mention the impact it would have on Eastern European economy! At least now we know why Ryanair avoided colliding with Wizz Air, or at least avoided from playing dirty for all this time. I guess that they have solved their little shareholder ''illegality'' and can now use it against their competitor.


User currently offlinebjorn14 From Norway, joined Feb 2010, 3447 posts, RR: 2
Reply 12, posted (2 years 7 months 6 days 1 hour ago) and read 3632 times:

Quoting flycro (Reply 1):
If FR weren't worried about losing pax in Central and Eastern Europe they wouldn't be s**t stiring like this.

It's not really about losing pax per se, it's about crushing your competitor. If you can knock your opponent out of the game before it starts then by all (legal) means do it.



"I want to know the voice of God the rest is just details" --A. Einstein
User currently offlinekrisyyz From Canada, joined Nov 2004, 1593 posts, RR: 0
Reply 13, posted (2 years 7 months 5 days 22 hours ago) and read 3409 times:

Quoting ju068 (Thread starter):
It is interesting that it was Wizz Air who complained to the European Commission related to Malev's renationalization. I guess Ryanair is fighting fire with fire

You know what they say about payback......... I guess W6 is getting a taste of their own medicine, sort of.

However I'm not a fan of this type of aggressive business tactics. FR is obviously trying to take out their major competitor in the sky, as well as trying to solidify their new BUD base.

KrisYYZ


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