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dfwking
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Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 9:51 am

Just saw this on the Abu Dhabi Government Media Office twitter handle. They have announced an agreement with WIZZ air to set up an LCC in Abu Dhabi. This would be the 2nd LCC announcement (Air Arabia/Etihad being first) in as many months! Does AUH have room for another LCC given that bigger cities like Dubai only have one.

Source:
https://twitter.com/admediaoffice?lang=en
Abu Dhabi Development Holding Company (ADDH) announces preliminary agreement with Wizz Air Holdings, Central and Eastern Europe's largest low-cost airline, to launch a low-cost airline in #AbuDhabi.
Last edited by dfwking on Thu Dec 12, 2019 10:09 am, edited 3 times in total.
 
Someone83
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 9:58 am

Or does it mean the agreement with Air Arabia is off?
 
TC957
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:01 am

Could be they want Wizz to serve routes to Europe and Air Arabia to serve the Gulf regions and the rest.
 
dfwking
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:05 am

Wizz is being led by AD Development Holding Company and Air Arabia by Etihad. Seems like two separate efforts
Last edited by dfwking on Thu Dec 12, 2019 10:06 am, edited 1 time in total.
 
Blerg
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:06 am

Interesting. One thing Wizz Air has managed to do is to stimulate demand and Abu Dhabi has been desperately trying to promote itself as a tourist destination. It could be a situation that benefits both sides. The only thing that would be interesting to find out is what destinations they would go after, would it be in Europe or would they get a UAE AOC and fly to regional destinations.

In a way this moves only goes to show that Abu Dhabi doesn't know what it wants to do with Etihad.
 
SCQ83
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:25 am

I guess that will means those Wizz Air routes to DWC will be moved to AUH.
 
Someone83
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:26 am

dfwking wrote:
Wizz is being led by AD Development Holding Company and Air Arabia by Etihad. Seems like two separate efforts


But isn't all connected anyway?
 
FluidFlow
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:34 am

From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.
 
IndianicWorld
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:39 am

Strange move to have 2 LCC’s launch.

EY will begin to eat into its own traffic of it doesn’t get its LCC plans right, but this new one is going to be another headache to deal with.

Abu Dhabi may well have grand plans to be a tourism and business hub, but Dubai is already a far larger magnet for those sectors. Trying to gain significant traction will be harder work so we will wait and see how they all find a piece of the pie.
 
IndianicWorld
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:40 am

SCQ83 wrote:
I guess that will means those Wizz Air routes to DWC will be moved to AUH.


Would appear so, as it doesn’t make much sense otherwise.
 
Blerg
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:53 am

FluidFlow wrote:
From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.


Even Luton? Isn't it a bit too far?
 
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chunhimlai
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:57 am

So in long run we can fly lcc from far east to east coast (via europe)
 
CHRISBA35X
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:59 am

Blerg wrote:
FluidFlow wrote:
From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.


Even Luton? Isn't it a bit too far?


I don't think the runway at LTN is long enough for an A321N to get to AUH with any kind of payload but I stand to be corrected.
 
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FlyRow
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 11:01 am

Blerg wrote:
FluidFlow wrote:
From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.


Even Luton? Isn't it a bit too far?

About 200nm too far from the 321neo's max range, especially in full 239 passengers confiq.

Wizzair does have the XLR on order.
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FluidFlow
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 11:36 am

FlyRow wrote:
Blerg wrote:
FluidFlow wrote:
From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.


Even Luton? Isn't it a bit too far?

About 200nm too far from the 321neo's max range, especially in full 239 passengers confiq.

Wizzair does have the XLR on order.


The 320neo has officially 3400nm range according to Airbus so it might be possible.
 
dfwking
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 12:28 pm

The second twitter post sheds some more light:
  • A new entity formed through a JV between the Abu Dhabi government & WIZZ
  • The airline will launch in Q2 2020 (Air Arabia launching in Q1 2020)
  • The airline will operate a fleet of A321NEOs

The airline will be formed via a JV with Wizz Air, with operations expected to launch in the second half of 2020. With its “green” fleet of Airbus A321neo aircraft, the world’s most efficient narrow body aircraft, the new airline will gain access to markets across Europe & beyond


I can't seem to understand what WIZZ has to gain from this. Perhaps they think there are attractive routes to be served from Abu Dhabi on a O&D basis even with Air Arabia & Etihad in the mix. I can't imagine they would set up their first ever connecting hub in AUH, so this has to be a play for O&D traffic. They could potentially turn AUH into a secondary airport for Dubai, especially for mass-market tourists. Then again, this is what DWC is meant to be.

Soon, the UAE will have 6 companies operating airlines within the next year, all in a country with less than 10 Mn people. Talk about saturation!
  1. Emirates
  2. Etihad
  3. Air Arabia - Sharjah
  4. FlyDubai
  5. Air Arabia Abu Dhabi
  6. Wizz Air Abu Dhabi
 
VTCIE
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 12:48 pm

dfwking wrote:
The second twitter post sheds some more light:
  • A new entity formed through a JV between the Abu Dhabi government & WIZZ
  • The airline will launch in Q2 2020 (Air Arabia launching in Q1 2020)
  • The airline will operate a fleet of A321NEOs

The airline will be formed via a JV with Wizz Air, with operations expected to launch in the second half of 2020. With its “green” fleet of Airbus A321neo aircraft, the world’s most efficient narrow body aircraft, the new airline will gain access to markets across Europe & beyond


I can't seem to understand what WIZZ has to gain from this. Perhaps they think there are attractive routes to be served from Abu Dhabi on a O&D basis even with Air Arabia & Etihad in the mix. I can't imagine they would set up their first ever connecting hub in AUH, so this has to be a play for O&D traffic. They could potentially turn AUH into a secondary airport for Dubai, especially for mass-market tourists. Then again, this is what DWC is meant to be.

Soon, the UAE will have 6 companies operating airlines within the next year, all in a country with less than 10 Mn people. Talk about saturation!
  1. Emirates
  2. Etihad
  3. Air Arabia - Sharjah
  4. FlyDubai
  5. Air Arabia Abu Dhabi
  6. Wizz Air Abu Dhabi

Not to mention SpiceJet at Ras al-Khaimah. From four airlines to seven. In contrast, some other Gulf flag carriers have a monopoly in their country: QR, GF and also Yemenia and MEA.
 
Galwayman
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 1:39 pm

Fantastic news , Wizzair are fantastic and have A321LRs on order , could be real game changer
 
P1aneMad
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 2:14 pm

Abu Dhabi does not have a large enough market to sustain Etihad.
And now they are going to launch TWO LoCos to chase after the same pax?
 
RalXWB
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 2:17 pm

Looks like the next XLR order is coming....
 
 
dtw2hyd
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 2:22 pm

Air Arabia for eastward routes and Wizz Air for westward routes with AUH as the connecting hub. Doable.
All posts are just opinions.
 
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PatrickZ80
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 6:47 pm

dtw2hyd wrote:
Air Arabia for eastward routes and Wizz Air for westward routes with AUH as the connecting hub. Doable.


Those should be self-connections then, I can't see them interline. Wizz doesn't even offer connections between it's own flights.

Of course self-connections are entirely possible, as long as the plane is reasonably on time. In that case it doesn't matter which airline flies where, they all feed each other and together they form a huge LCC network.
 
MCTSET
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 8:11 pm

[code][/code]

I think this could be a very good move by Wizz air. W6 number one focus is cost and by opening an airline in Abu Dhabi it could really be beneficial for them.

1) Labour costs. With no personal income tax in AUH, this is equivalent to lowering labour costs by 25%.

2) fuel prices, fuel prices would be slightly cheaper in AUH than Europe with less tax, i could definitely see them also having an agreement with the Abu Dhabi authorities on this point to help reduce the cost.

3) slots and airport fees, Abu Dhabi authorities have invited W6 to AUH, W6 in their nature being very risk averse to new markets would not enter without having certain guarantees in place for this matter.

W6 already has the lowest CASK in all of EU area, and has been expanding in a very competitive market, with the cost advantages above with an already exceptionally low CASK entering a market where 90% of the population is expat and travel consistently too and from the city, that enough would be very potent business case. Add to that W6 unparalleled ability to stimulate markets (if W6 can move 600,000 passengers every year from Kutaisi) imagine what they can do with a city like Abu Dhabi.
 
Kilopond
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 9:17 pm

MCTSET wrote:
[...]
1) Labour costs.[...]
2) fuel prices,[...]
3) slots and airport fees,[...]

:bigthumbsup:

Add:
4) Traffic Rights. W6 can transport paying passengers from/to all those points in Europe that are not allowed for UAE-based carriers.
 
parrotta
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Thu Dec 12, 2019 10:08 pm

its a long going gossip in Budapest about Wizz in Abu Dhabi. we will see whats gonna happen, economy is quiet bad in UAE, but also wizz has many aircraft on order and they have to fly them somewhere so it might be a smart choice as more and more ppl travels from India and Africa to GCC and EU.
 
onwFan
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Fri Dec 13, 2019 12:28 am

The only way any of these would make sense is if they were to gradually dissolve Etihad and leave the AUH market to LCCs and the UAE long haul market to Emirates.
 
myki
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Fri Dec 13, 2019 3:52 am

Without EY, most people wouldn't know Abu Dhabi existed, so we must all consider what the endgame is: is it to ensure EY thrives, is it to ensure EY is profitable, or is it to increase the total number of visitors/hotel nights who dump external money in to the Abu Dhabi economy - irrelevant of which plane they fly in on?
 
Blerg
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Fri Dec 13, 2019 6:32 am

It could also be that with the new terminal at AUH there will be too much room, especially with EY sending brand new A350s to storage and retiring the A330s. Also, the situation for Wizz Air in eastern Europe isn't that fantastic.
In Poland they still have LO to deal with which doesn't seem to be going anywhere. LO is even expanding in BUD where W6 operates a mega-hub which, as we've seen the other day, is not one of their most profitable hubs, especially given the size of the base. They were also hoping the Serbian government will be killing off JU which also didn't happen. In the Baltic region BT is expanding from the three airports thus increasing competition. Wizz Air has somewhat failed in the Czech Republic which Romania and Bulgaria seem to be the only truly great performers for them.

This deal with AUH is probably Wizz Air looking for new markets. Today Abu Dhabi tomorrow, Bahrain, Dammam or whatever. If they manage to considerably boost AUH numbers then other airports in the region will be calling them to do the same. Kind of what they did in Eastern Europe some 10, 15 years ago.
 
patrickjp93
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Fri Dec 13, 2019 6:42 am

Oof, haven't they yet learned from Etihad that Abu Dhabi's royals don't do a good job at running/overseeing airlines? Maybe they'll do better with the LCC game, but I kinda doubt it.
 
SCQ83
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Fri Dec 13, 2019 6:47 am

onwFan wrote:
The only way any of these would make sense is if they were to gradually dissolve Etihad and leave the AUH market to LCCs and the UAE long haul market to Emirates.


I can see Etihad and W6 as complementary.

Etihad focused on high-volume and/or premium routes (Heathrow, Paris, etc) and W6 on secondary markets (e.g. Budapest, Sofia, etc)
 
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PatrickZ80
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Fri Dec 13, 2019 10:32 am

patrickjp93 wrote:
Oof, haven't they yet learned from Etihad that Abu Dhabi's royals don't do a good job at running/overseeing airlines? Maybe they'll do better with the LCC game, but I kinda doubt it.


That's why the management in this case isn't in the hand of the Abu Dhabi royals, Wizzair will manage this airline themselves.
 
parrotta
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Sun Dec 15, 2019 3:55 pm

we will see. if you look at Air Serbia project its a huge failure. 1x daily BEG-AUH on A319 is a joke. was bigger plane when they started.
There is simply no demand on AUH flights... CEE will not sustain that new airline. Wizz flies daily from BUD to DWC on ridiculous prices (40 EUR oneway)
It also a concern about the flying rights, if they establish a new arline in UAE it will have UAE AOC, so planes not gonne be Hungarian registered as most of Wizz aircraft, so the rights are not really gonna work... lets see. Cooperation with EY is no way. ULCC and a Premium carrier no way.
 
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lightsaber
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Sun Dec 15, 2019 5:19 pm

PatrickZ80 wrote:
patrickjp93 wrote:
Oof, haven't they yet learned from Etihad that Abu Dhabi's royals don't do a good job at running/overseeing airlines? Maybe they'll do better with the LCC game, but I kinda doubt it.


That's why the management in this case isn't in the hand of the Abu Dhabi royals, Wizzair will manage this airline themselves.

Something about this strategy is too dispersed. I respect Wizz Air's management.

Lightsaber
IM messages to mods on warnings and bans will be ignored and nasty ones will result in a ban.
 
Blerg
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Sun Dec 15, 2019 5:57 pm

parrotta wrote:
we will see. if you look at Air Serbia project its a huge failure. 1x daily BEG-AUH on A319 is a joke. was bigger plane when they started.
There is simply no demand on AUH flights... CEE will not sustain that new airline. Wizz flies daily from BUD to DWC on ridiculous prices (40 EUR oneway)
It also a concern about the flying rights, if they establish a new arline in UAE it will have UAE AOC, so planes not gonne be Hungarian registered as most of Wizz aircraft, so the rights are not really gonna work... lets see. Cooperation with EY is no way. ULCC and a Premium carrier no way.


Excuse me but the Air Serbia project is far from being a failure, their management skills were a failure but the airline started thriving once EY was out of the picture. Also, in summer 2019 AUH-BEG was operated two times per day, not once. Also they used their A320, not A319. Please do some research before posting.
 
EIBPI
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Tue Dec 31, 2019 12:01 am

Some Air Arabia Abu Dhabi routes have apparently been loaded. At least we know some of the places we probably will not see Wizz Air:
https://onemileatatime.com/air-arabia-abu-dhabi/

Abu Dhabi to Almaty 3x weekly
Abu Dhabi to Dhaka 1x daily
Abu Dhabi to Faisalabad 1x daily
Abu Dhabi to Jaipur
Abu Dhabi to Kiev 3x weekly
Abu Dhabi to Multan 1x daily
Abu Dhabi to Peshawar 1x daily
Abu Dhabi to Taif 4x weekly
Abu Dhabi to Tbilisi 1x daily
Abu Dhabi to Yanbu 3x weekly
Abu Dhabi to Yerevan 4x weekly
 
bspc
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Tue Dec 31, 2019 12:14 am

Blerg wrote:
FluidFlow wrote:
From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.


Even Luton? Isn't it a bit too far?


Isn't that technically a different Wizz Air? Wizz Air UK.
 
Rossiya747
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Tue Dec 31, 2019 1:08 am

could Wizz create potentially hub AUH and start flying from AUH to India and the Far East?
223 319 320 321 332 333 346 388 734 737 738 739 38M 744 752 753 763 764 772 773 77W 788 789 208 CRJ2 E145 E190 UA DL AA WN AC CM 4O AV 2K FI DY D8 SK LH EI FR U2 IB OS LX BA VS BT PS MS SA SW QR EY HY AI 9W TG SQ MH AK D7 QZ BR NH CA QF MI LV/IB VY AL
 
EIBPI
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Tue Dec 31, 2019 7:41 am

bspc wrote:
Blerg wrote:
FluidFlow wrote:
From Warsaw it is only 2260nm to AUH so it is for WIZZ possible to reach AUH with standard NEOs from all of their bases.


Even Luton? Isn't it a bit too far?


Isn't that technically a different Wizz Air? Wizz Air UK.


Some LTN flights are operated by Wizz Air UK, which is a separate AOC with 10 G-reg A320/A321s. The ownership, management, operations, is all the same as the normal Wizz Air.
 
EIBPI
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Tue Dec 31, 2019 7:42 am

Rossiya747 wrote:
could Wizz create potentially hub AUH and start flying from AUH to India and the Far East?


Isn't this what this topic is all about except that Wizz Air Abu Dhabi will be a joint venture 51% state owned. Traffic rights (and generous incentives) probably mean it will not be a traditional Wizz hub.
 
smbukas
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Re: Abu Dhabi Announce Agreement to Launch LCC with WIZZ Air

Tue Dec 31, 2019 8:20 am

Rossiya747 wrote:
could Wizz create potentially hub AUH and start flying from AUH to India and the Far East?


Have in mind Wizz Air is completely point-to-point airline. They are not selling any connecting flights and Wizz Air CEO said publicly a few times they are not looking into changing this model: that's part of Wizz Air DNR.

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