Actually, Wizz Air boss Jozsef Varadi should have known the price lists of the airport and the ground handling providers before entering the market in Vienna-Schwechat. Suddenly the Austrian airport is too expensive for him, which is why the presence in Vienna is reduced. Austria no longer has priority in the route network of the low-cost airline.

Just a few months ago it sounded very different: Wizz Air President Robert Carey announced further expansion in Vienna-Schwechat at a press conference. Additional Airbus A321neo should be stationed and further growth for the winter flight schedule 2022/23 was promised. According to Carey, Salzburg should also play a high priority in route planning, but Corona has messed everything up. The comeback to the summer flight plan 2022 would be fixed. As is well known, nothing came of it.

Wizz Air's strategy in Vienna has changed in the meantime. It used to be a question of gaining market share at any price and obviously of fierce competition with Ryanair, but now the priority is outside. People are not putting as much energy into the Viennese market anymore, and Varadi gave two surprising reasons for this during an aviation conference in Cluj, Romania: On the one hand, Vienna-Schwechat Airport is too expensive for him and on the other hand, he is bothered by the fact that Austrian Airlines is receiving state aid from the government was supplied and the personnel costs were artificially reduced with short-time work. The latter “at the expense of taxpayers, of course”. A significant market distortion has taken place and Wizz Air can use the aircraft more profitably from "cheaper airports".

Vienna Airport attracted Wizz Air with a price reduction

Jozsef Varadi, who claimed in 2019 that the Vienna base should be highly profitable, has admitted, but not that Vienna has made a mess. He also doesn't want to hear that competition with Ryanair would make life difficult for the carrier he manages in Vienna. They have been in competition with Ryanair at various airports for many years and competition would be a good thing, says Varadi. He prefers to rant about the government, which has distorted the market with state aid for Austrian Airlines and, on top of that, the cost structure in Vienna has developed unfavorably.

Jozsef Varadi didn't say a word about the fact that following the bankruptcy of Air Berlin and Niki, Vienna Airport launched an attractive incentive program to attract new carriers to Vienna. This was so exciting for airlines that Laudamotion was bought by Ryanair, Wizz Air opened a base in Vienna, IAG Level Europe founded and other low-cost airlines came to Vienna. Not much is left, because Level Europe is bankrupt, Easyjet withdrew, Wizz Air is shrinking in Vienna and some smaller low-cost airlines have also said goodbye. Corona is not the sole cause, because after the expiry of incentive agreements, “price according to tariff” applies and low-cost airlines in particular are known for discounts being “taken along” and if these are not continued, you downsize or just give up.

Varadi clearly emphasizes liquidity

Varadi did not want to comment on a possible complete withdrawal from Vienna. His closest competitor, Michael O'Leary, who comments on pretty much everything, predicts the closure of the Vienna base. The only thing that is fixed is that Wizz Air will spend less energy and money on Vienna.

According to Jozsef Varadi, Wizz Air is doing well financially. He points out that around 4,5 billion euros in liquid funds are available. When asked about the low level of fuel hedging, the manager was not easy to talk to. He did not respond to a question of this kind, preferring instead to talk about the low fuel consumption of the A320neo/A321neo fleet, in his opinion. The young machines would mean that the increased fuel prices should be less painful for Wizz Air. Rather, the manager predicts that legacy carriers would soon have major problems because their business models would be too complex and too expensive. In addition, passengers should not be willing to pay these airlines so much money for tickets. According to Varadi, these would also be climate sinners.

When asked about a possible further consolidation of the industry, the Wizz Air boss said that legacy carriers would learn more and more from low-cost airlines and would still charge high ticket prices. Wizz Air has no ambitions to take over another carrier or to cooperate with one or more regional airlines. You want to grow organically. "Expensive acquisitions of loss-making airlines are something for Lufthansa, but not for us," said Varadi.

ATC strikes should be banned

The Wizz Air boss thinks absolutely nothing of strikes by air traffic controllers. This should be banned by law, following the example of the United States of America, because it cannot be that air traffic can be paralyzed and disputes settled on the backs of the passengers without any consequences for ATC or unions. The airlines would foot the bill, because they are left with all the costs and have the anger of the passengers who cannot fly on their necks. For the summer of 2022, Varadi hopes that there will be no strikes in the ATC area.

While Varadi has once again ruled out that the Airbus A321XLR type could enter the transatlantic business, he has a lot to gain from the cargo variant of the A321. Two years ago he would have laughed at such cargo planes, but now they are available and "extremely interesting". He did not want to rule out the possibility that Wizz Air could purchase some A321Fs in the medium term and get involved in the cargo business. There are no plans for this in the short term, but the option is being kept open.

In this context, Varadi also points out that it operates an A330 freighter on behalf of the Hungarian government. His conclusion: “We make a lot of money with it and the Hungarian government also makes a lot of money with it. A win-win situation and maybe sometime A321Fs will come on our own, but we don't have any plans in the short term”.