Wizz Air Abu Dhabi (5W, Abu Dhabi International) is on track to commence flight operations during autumn 2020 following the firming of a Memorandum of Understanding (MOU) between its shareholders, the Abu Dhabi Developmental Holding Company (30%) and Wizz Air (W6, Budapest) parent Wizz Air Holdings (70%) on Monday, March 2.

"Today marks an important milestone on the way to establishing our new airline in Abu Dhabi," József Váradi, the LCC's CEO, said in a statement. "The economically and operationally highly efficient and very sustainable business model should give Abu Dhabi's airline industry a tailwind. Wizz Air's mission underpins Abu Dhabi's economic strategy for more diversification."

Váradi said during a recent earnings call that, like rival start-up Air Arabia Abu Dhabi, Wizz Air Abu Dhabi has also been conferred national carrier status by the UAE authorities, thereby allowing the start-up to enjoy the same rights as Etihad Airways, Emirates, flydubai, and Air Arabia. The firming of the MOU has allowed it to now proceed with securing its Operator's Licence (OL) and Air Operator's Certificate (AOC) from the Emirati General Civil Aviation Authority (GCAA).

"We expect the airline to take off towards the end of the year, around October, November time, subject to legal proceedings and licensing, but we believe we are on track to deliver this initiative," the CEO added.

Váradi also highlighted during the call that Wizz Air Abu Dhabi would only operate A321-200neo equipment with initial operations to launch with two aircraft. Overall, the LCC will grow to 50 aircraft by 2030 and 100 by 2035.

In light of the lucrative opportunities available in the Gulf, given the concessionary tax rates Wizz Air will enjoy there, the A321neo(XLR) will also play a role in Wizz Air Abu Dhabi's growth.

"Also, you know that we have an order book on the A321neo(XLR)s that will start coming in, in 2023. And we think that Abu Dhabi is one of the prospective markets for the A321neo(XLR) deployment. I mean simply because the market opportunities coming with range are very attractive. And certainly, we will consider Wizz Air Abu Dhabi to be a very strong candidate for the deployment of the A321neo(XLR)s as well. This is three years down the line, but I think time flies very quickly. So we will get there sooner than we would think," he added.