Wizz Air revives flotation plan

getAsset.aspxBy Phil Davies,

Central and eastern European low-cost carrier Wizz Air aims to raise €150 million via a revived plan to float on the London Stock Exchange.

The airline scrapped plans to float in London last summer, blaming volatility in airline share prices.

The renewed initial public offering is due to be completed in the first quarter of the year following a 22% rise in revenues to €992 million in the nine months to December 31.

Passenger numbers were up by 18% in the period to 12.7 million with earnings (EBITDA) up by 30% to €305 million over the same period a year earlier.

Capacity is set to rise by 20% as the carrier responds to continued GDP growth in central European regions that is greater than levels in western Europe.

Wizz Air’s network covers 37 countries from 18 bases in 10 countries with a fleet of 54 Airbus A320s. The fleet is due to grow to 85 aircraft by the ned of 2017.

Chief executive József Váradi said:  “Wizz Air is the largest low-cost carrier in central and eastern Europe. Our low fares offer many consumers throughout Central and eastern Europe access to low-cost air travel for the first time and we operate in many markets where low-cost airline penetration is low with significant potential for growth.

“Our consistent focus on providing high-quality services at attractive price points has brought strong, sustained growth in revenue and profit, significant brand recognition and a reputation for innovation and hometown customer care.

“In the current financial year, the company has continued to trade very robustly. Our key operational performance metrics have also shown continued good progress and we continue to expand our number of operating bases and routes.

“We maintain a relentless focus on costs, customer service and punctuality to drive our business forward in what we believe is one of the world’s most exciting aviation markets.

“We believe that Wizz Air represents an attractive opportunity to invest in the expected growth in the central and eastern European air travel markets where a combination of deregulation, above average GDP growth, a growing middle class and supportive migration trends in an area with a large population is expected to drive higher propensity to air travel and higher low cost carrier penetration.”

Sourced by Travel Weekly

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