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By Laurence Frost
PARIS, Nov 24 (Reuters) - Low-cost carrier Wizz Air
is seeking a bigger foothold at London Gatwick, but its
ambitions may be hampered if regulators extend a freeze on
airport slots in response to the coronavirus crisis, Chief
Executive Jozsef Varadi said.
In an interview aired during the online Paris Air Forum on
Tuesday, Varadi criticised the suspension of EU rules governing
the competitive allocation of airport take-off and landing
rights.
"It is one of the airports we're talking to, but I have no
idea what's going to happen to these slots," Varadi said of
Gatwick, the UK's second aviation hub after Heathrow. "First I
would like to see the regulator take position on that."
Well-funded budget carriers are in positioned to dominate an
eventual recovery powered by medium-haul leisure travel. Like
his Ryanair rival Michael O'Leary, Varadi expects a
fare-cutting frenzy.
"The market will have to be re-stimulated," he said.
"There's going to be a lot of competition, there's going to be
price wars."
Under normal slot rules, airlines that fail to use 80% of
their take-off and landing rights have to cede some of the slots
to competitors.
Brussels suspended the "use-it-or-lose-it" principle this
year so that grounded airlines could keep slots. The waiver has
been prolonged once despite Wizz's objections, and traditional
carriers are pressing for another extension beyond March.
"If airlines lose their slots the global network will
crumble," IATA, which represents major airlines, said in a
presentation on Monday. "Airlines are in no state to be
operating 80% of slots right now."
Whether Britain must abide by any EU decision on a further
waiver extension could depend on the outcome of talks on a
post-Brexit aviation deal, adding more complexity.
"We can keep deferring to COVID-19 forever, but the fact of
the matter is that there are airlines who are capable and able
to recover quickly," Varadi said.
"And there are airlines that will be dragging for a long
time or may never come out of this," he added. "It's almost
criminal to hold the slots they don't have any intention to
operate."
Norwegian Air has filed for bankruptcy protection
in Ireland, deepening doubts over its suspended Gatwick
operations. British Airways and Virgin Atlantic may not
return to the airport at pre-crisis strength.
Varadi's push to open up slots is gaining some support.
Ryanair, which backed the last waiver extension, now opposes
further prolongation, CEO O'Leary said this month. Gatwick boss
Stewart Wingate also called https://www.ft.com/content/8d9bf01f-f31b-4d41-94a1-25305df04794
for a return to normal rules.
Since the start of the pandemic, Wizz has continued taking
plane deliveries while announcing new routes and aircraft bases.
Varadi warns that airports will need to cut their own costs to
attract more traffic.
"We're seeing many more opportunities than we can pursue -
we have become very selective," he said in the interview. "Many
of the airports are pretty much begging for the capacity we can
bring to them."
(Reporting by Laurence Frost; Additional reporting by Tim
Hepher and Sarah Young; Editing by Pravin Char)
