Editor’s Corner #20 – Ukraine Crisis: Wizz Air Abu Dhabi’s Russian Return was a Mistake from the Start

London – With Wizz Air using its Abu Dhabi subsidiary to bypass sanctions when it returned to Russia, it was clear that this was a mistake from the start. Welcome to the editor’s corner.

The editor’s corner is from the column series Aviation resources Editor-in-Chief James Field, who will give his thoughts (potentially controversial) on all things happening in the aviation industry.

If you missed the last 19, feel free to browse through them before continuing with this article:

1. Editor’s Corner #1: The industry isn’t ready for the demands of summer 2022
2. Editor’s Corner #2: JetBlue’s offer for Spirit Airlines will change the dynamics of American Airlines
3. Editor’s Corner #3: Boris Johnson’s damage to aviation industry is another reason to quit
4. Editor’s Corner #4: PLAY will transform the market with a post-pandemic advantage
5. Edit Corner #5: Damage to Boeing 737 MAX and 787 causes 777X-based aftershocks
6. Editor’s Corner #6: Qantas’ future plans to reverse negative times
7. Editor’s Corner #7: The P2F market is heating up…
8. Editor’s Corner #8: O’Leary is getting another cheap Boeing order
9. Editor’s Corner #9: Ukraine Crisis: Turkish Airlines’ A350 snapped up from Aeroflot may have something to do with the red carpet…
10. Editor’s Corner #10 – Ukraine Crisis: Lessors Won’t Win Russia Battle
11. Editor’s Corner #11 – Spirit Airlines is slowly changing its mind…
12. Editor’s Corner #12 – India’s air cargo market is heating up
13. Editor’s Corner #13 – Video footage of RedAir flight 203 highlights the dangers of carrying luggage during evacuation
14. Editor’s Corner #14 – The Spirit-Frontier-JetBlue merger battle will be remembered as a mess
15. Editor’s Corner #15 – Flyr, Norse and Norwegians have a chance to take advantage of the SAS’ dilemma
16. Editor’s Corner #16 – The Airbus-Boeing battle will heat up in Farnborough
17. Editor’s Corner #17 – My predictions for Farnborough went well…
18. Editor’s Corner #18 – Why are airports and airlines fighting for chaos when the government is to blame?
19. Editor’s Corner #19 – Manchester Airport has sorted out its chaotic period – but needs improvement…

Wizz Air’s return to Russia through its Abu Dhabi subsidiary was a mistake from the start as they tried to reduce sanctions to generate revenue.

It’s also clear that only some airlines can get away with it, especially Turkish Airlines rolls out the red carpet for Russian tourism.

While it is understandable that Wizz Air wants to capitalize on certain markets, now is not the time to do so in a market that is volatile and opposed by the West.

Wizz Air blames ‘supply chain constraints’ on backtracking…

In a statement to passengers, Wizz Air blamed the backtracking on supply chain constraints:

“The UAE’s ultra-low-cost national airline, Wizz Air Abu Dhabi, regrets to inform its customers that due to industry supply chain constraints, the airline has had to postpone the start date of its flight operations from Abu Dhabi to Moscow until further notice.”

The supply chain restrictions seem a bit vague to me, perhaps more to offset the backlash it has received from its desire to resume operations in Moscow and Krasnodar.

With the Abu Dhabi government not imposing sanctions on Russia, this does give Wizz Air the route it needs to resume operations, but after the backlash, it’s clear they probably won’t sell many tickets as a result.

Russia is a lucrative market…

It is clear that Russia is a lucrative market as many airlines are looking to return to the region. Only a handful of airlines are currently able to operate in Russia without sanctions.

Airlines such as Emirates, Turkish Airlines, Flydubai and others are currently benefiting from high travel demand, which has been pent up as Ukrainian crisis sanctions limit destination choices.

Before the crisis, domestic RPKs from Russia rose by 23.8% in January, also due to further connectivity options from international operators.

So it does ultimately indicate pent-up demand, just for the wrong reasons at this stage.

Attempts to replicate the Turkish Airlines effect failed…

For Wizz Air Abu Dhabi, the backtracking represents a failed attempt to replicate what Turkish Airlines is currently doing.

as described above Aviation resources In the article, the Turkish government announced that they would welcome new airlines and tourists into the region.

This also amounts to a loan worth around £240m, despite ongoing sanctions from NATO and the West.

Turkey has seized an opportunity to lure Russian holidaymakers banned from the rest of Europe as countries step up to acquire major stakes in upcoming European summer vacationers.

In effect, the Turkish government has rolled out the red carpet for Russia and has thus allowed some economic stimulus in their direction.

The Russian side needs that stimulus as sanctions start to take effect.

As Boycott Russia said, Turkish Airlines will add 25 aircraft to Russian flights and increase the frequency to 300 weekly flights, providing a capacity of about 1.5 million seats.

Does Turkish Airlines’ impact only apply to traditional airlines? Socioeconomic Perspectives…

From a socio-economic standpoint, the resumption of Russian flights may only apply to traditional airlines, meaning that passengers who want to spend more for comfort will not be phased in because of what’s going on.

The same goes for Emirates, who still offer flights from Dubai to Moscow, giving those who want easy access to the region.

Since Wizz Air is targeting more of the low-cost side, they are more vulnerable to backlash from their own passengers, who may be more politically sensitive to such issues.

Since many traditional passengers want to pay for comfort and get from point A to point B, this may not be that important in their minds, which is why these airlines have been expanding frequencies beyond Russia.

Overall: Wizz Air Abu Dhabi will have to delay until crisis eases…

It remains clear that Wizz Air will have to delay re-entry into Russia until the crisis abates or some form of conclusion is reached.

Because of their clients, I should rightly add that this is not the time to expand into markets where competition is purely political on a scale.

Too much negative PR will hurt ticket sales in the region, meaning Wizz Air should probably leave the job of Russian flights to legacy airlines that can afford the loss.

Either way, this is an indicator of where Wizz Air hopes to take its Abu Dhabi subsidiary next, and it will be interesting to see what the alternative market will be.