Wizz Air CEO Labels Pratt & Whitney Engine Issues As “Horrific”

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Speaking at the Warwick Economics Summit on Saturday morning, Wizz Air CEO József Váradi described the company’s recent supply chain issues as “horrific.” The latest comments come after an earlier announcement in which Wizz Air noted that its growth plans had been thwarted over the next year or so as it has been forced to ground a large part of its Airbus A320neo family fleet.

These aircraft are fitted with engines from American manufacturer Pratt & Whitney, which has been suffering both financially and in name as a result of the deficiencies affecting airlines worldwide.

GTF-1

Photo: Pratt & Whitney

Pratt & Whitney issues

At the end of last year, Wizz Air announced that it would have to ground approximately 40 Airbus A320neo family planes through 2026 due to the Pratt & Whitney engine issues that have plagued its operation for some time now.

However, with improved visibility, the airline was able to confirm a return to growth come 2026. It also has the added comfort of additional aircraft deliveries, expecting 50 new Airbus A321neo planes, which will provide a roughly 20% increase in seat capacity.

Wizz Air Airbus A321neo in Tianjin | 9H-WDR

Photo: Airbus

In 2023 it became clear that powder metal issues on the PW1100G-JM turbofan (GTF) were to become a long-term concern for airlines as the engine manufacturer warned that up to 350 planes could require inspections through 2026, with the majority occuring in early 2024.

At the Warwick Economics Summit on Saturday, Váradi described the “underperformance of the supply chain” as “horrific.” He continued:

“That was simply the worst that could have happened to this industry.”

Post-pandemic opportunity

Váradi added that the supply chain issues followed two other events that have had an influential impact on the airline’s strategy in recent times, including the coronavirus pandemic and conflict in the Middle East.

On the COVID-19 pandemic, Váradi noted that while it had a significant impact on passenger numbers in the short-term, it also had a long-term positive effect on the airline’s strategy. Wizz Air’s market position was reshaped in several key markets. He noted the launch of its London Gatwick base in October 2020, expansion ex-Albania and growth notably in the Italian market where the airline’s position was materially reinforced.

“With the benefit of hindsight, I would say that COVID was a good thing for Wizz Air. The whole industry was sort of reversing and pushing the breaks, and we were accelerating and that enabled us to enter into significant new markets. And we are sticking to those investments.

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The news follows the announcement of a similar milestone at another of the carrier’s UK bases.

“That’s why I am saying that COVID was a good thing because we were able to invest, given our cash position, against opportunities which others left behind because they simply were just not in a financial state to be able to compete and to be able to replicte that kind of an investment.”

The Chief Executive also highlighted the importance of a lower cost base and the healthier financial position of low-cost airlines in a post-COVID environment. Thanks to their “financial capacity to act,” the low-cost model is better suited to regularly changing and uncertain market circumstances, he argues.

Geopolitics & capacity cuts

Two geopolitical events, the Russia-Ukraine conflict and Israel’s war against Hamas, had a noteworthy impact on Wizz Air’s capacity-wise operation.

Close-up of a Wizz Air Airbus A320neo PW1100G engine shutterstock_2359372957

Photo: AstroVictor | Shutterstock

Váradi says that an overall 13% of the airline’s capacity was allocated in Ukraine and Russia at the time of the outbreak of the war in 2022, while around 10% of capacity was allocated to the Middle East when the Israel-Hamas conflict intensified after the October 7 attacks. A significant portion of this percentage was allocated to its Tel Aviv operation.

Wizz Air has already resumed some services to Tel Aviv, including flights from London, Athens, Larnaca, Budapest and Abu Dhabi to name a few.

All things considered – including the COVID-19 pandemic, geopolitical tensions and P&W groundings – Wizz Air says “over the last three years, 50% of our capacity got grounded.”

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In the past 24 hours, Wizz Air alone has resumed flights to 13 destinations from Tel Aviv, Israel.

This year it hopes to transport 75 million passengers, a number that will nearly double if it follows through with its plan to have 500 planes by 2032, offering about 150 million seats annually. By the end of this year, it anticipates a fleet of 258 planes.



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