Wizz Air: Route Strategy & Network Planning

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So it started as an initiative from the Emirati government. You mentioned it was very difficult to operate there initially. Why was that?

So, even if a worker was going home, they would likely do so with Emirates, Turkish Airlines, Qatar Airways, Gulf Air, or other established airlines with contracts in those countries. For leisure purposes, it's different from Europe. In Europe, if you discount fares by 50%, you might gain at least 50% more demand, if not more. That's not the case in the Middle East. Most people have high purchasing power, so whether the ticket is €50 or €5, it doesn't make a big difference. You don't generate thousands more passengers just by lowering the price. It works in Europe because it's competitive, and people understand the low-cost model, but that's not the case there.

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When developing a new route, how do you consider the segments of business versus leisure? Did you prioritize one over the other?

However, in the case of Wizz Air, they know they can't capture much of the business segment. This is not just because they lack the cabins, but also because they don't have the brand for it. They mainly focus on visiting friends and relatives, as well as leisure and tourism. These are the segments they target, and they don't handle much in terms of groups either. It's somewhat simpler for them. Ultimately, what they prioritize is cost over revenue. They understand that they could potentially earn higher revenues by flying empty on one leg, having two frequencies a day, engaging differently, or selling indirectly to corporates. However, they avoid these complexities.

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