Wizz Air Holdings is not averse to potential mergers and acquisitions of other airlines in the future, as long as it maintains strict cost discipline in the process, Chief Executive József Váradi told Bloomberg.
"Given our low-cost business model, we are not a natural consolidator, and it doesn't come to us intuitively, but that's not to say that we won't be looking at opportunities as they arise," he said.
Váradi added that the low-cost carrier had considered 20 potential mergers or acquisitions over the last ten years. He said that despite having no ambitions of building IAG International Airlines Group-like holdings, Wizz Air was "not blind" to market trends, including consolidation.
Although the LCC has not publicly confirmed it, it was widely understood to be behind the recent takeover proposal for easyJet. The British rival rejected the highly conditional and unsolicited offer, deeming it "fundamentally undervalued".
According to the ch-aviation capacities module, Wizz Air Holdings (comprising Wizz Air, Wizz Air UK, and Wizz Air Abu Dhabi) is the smallest of three main independent LCCs in Europe. It proffers 851,492 weekly scheduled seats, compared to 3,030,489 seats on sale by Ryanair Holdings (via Ryanair, Ryanair UK, Buzz (Poland), Malta Air, and Lauda Europe) and 1,330,708 on sale by easyJet (via easyJet, easyJet Europe, and easyJet Switzerland).
According to its quarterly financial report, as of June 30, 2021, Wizz Air Holdings had EUR1.5 billion euros (USD1.7 billion) in unrestricted cash.
Váradi also added that the Hungarian LCC had ambitious growth plans and intenda to reach a size 2.5 times larger than what it is currently, although he did not specify the timeline for this expansion. That growth will require more aircraft. Váradi would not, however, comment on any potential deals with Airbus. Sources recently told Reuters the LCC was in talks for at least 100 new A320neo Family aircraft.
