Budget carrier Wizz Air is suspending operations with its United Arab Emirates venture, Wizz Air Abu Dhabi, and plans to withdraw from the company.
The airline states that it will halt services with the division from 1 September.
Wizz Air is attributing the decision to “operational challenges” – including engine reliability in the harsh conditions – as well as “geopolitical developments” in the Middle East.
“While this was a difficult decision, it is the right one given the circumstances,” insists chief executive Jozsef Varadi.
“The operating environment has changed significantly. Supply chain constraints, geopolitical instability, and limited market access have made it increasingly difficult to sustain our original ambitions.”
It established Wizz Air Abu Dhabi in 2020 through a co-operation with local partner Abu Dhabi Developmental Holding Company.
Wizz held high expectations for the venture, believing it would expand to a fleet of 100 aircraft within 15 years.
Although it commenced operations during the Covid-19 pandemic, it quickly took advantage of emerging political ties between the UAE and Israel to develop its network, and built routes to Europe, the Gulf, and Central Asia.
The division has been using Airbus A321s and A321neos, fitted with Pratt & Whitney PW1100G and International Aero Engines V2500 powerplants.
But it cites “engine reliability constraints, particularly in hot and harsh environments” as contributing to its decision.
The airline has also been facing difficulties arising from regional conflict which, while sapping consumer demand, has led to intermittent airspace closures and operational disruption.
Wizz Air adds that regulatory issues have restricted its ability to “access and scale” in certain important markets.
“These factors have significantly impacted the viability of Wizz Air’s ultra-low-cost model in the region and its ability to deliver profitability in line with its core European operations,” the airline says.
It aims to exit the venture and focus instead on its core European operations, a strategic realignment which, it says, offers greater long-term growth and profit potential.
