Reality11 Jul 2025 09:52
Currently Wizzair is reasonable to say that "the management will feed itself." This is evident in the scale of benefits flowing to it. And here we see a significant difference with Ryanair. There, money goes to both management and shareholders - both in the form of dividends and a systematic increase in the share price. The management policy is also more transparent, based on predictable business risk and profit maximization. In this case, Wizzair is simply giving way Ryanair, when Wizzair effectively winding down operations and hoping for compensation for grounded aircraft. But these compensation payments won't cover real losses, and it's best not to mention the resulting profits (although some "experts" on this forum have created that impression). An example of this stupidity is how Wizzair has reduced its route network from the UK to Central Europe in recent years. Officially, this was because interest and the number of EU emigrants wanting to travel to their home countries declined. The reduction in its route network to Poland has had no real impact on Ryanair. Consumers are forced to fly with transfers, most of whom continue to use its services. Wizzair, however, has lost a steady source of revenue. These planes were intended and were moved for the US, the Middle East, and former Soviet Union countries routes. We're seeing the results. Ryanair did something similar – however, it moved planes to profitable routes, but starting next year, it's announcing expansion from abandoned destinations in Poland, the most important hub in this part of Europe. Today, it's signing new agreements there, planning its operations and securing its route network for the coming years. Meanwhile, Wizzair is doing nothing to take over available slots and lure customers on abandoned routes, which, while perhaps less profitable, generated steady revenue. When it turns out to be necessary to return to the old routes, it will simply not have the technical capabilities. And the reason here is partly the politicization of management's activities. This situation will force it to invest in developing routes from the Middle East, where, if hostilities cease, it will face significant and strong competition from companies like Emirates, Qatar, and Turkish Airlines – wealthy and with political backing. It's best not to mention the Ukraine issue. The war is far from over, and Hungarian capital will not be welcome there for a long time.
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