Budget carrier Wizz Air is pulling out of its Abu Dhabi hub as local rival Etihad Airways, a fellow ADQ portfolio company, prepares to expand its routes.
The London-listed airline cited geopolitical tension in the region, difficulty securing routes, and engine issues from the harsh climate as reasons. It will stop flights out of Zayed International Airport from Sept. 1, bringing to an end a five-year joint venture with sovereign wealth fund ADQ, which is a 51% owner of the UAE unit.
The budget Hungarian carrier — with its non-reclining economy seats and practice of charging for practically everything but water onboard — was seen by some as an odd fit for a region inured to some of the cushiest airline fleets in the world. While its airfares were welcomed by many, ultimately, they were often undercut by regional carriers. Etihad announced a network expansion into the Caucasus and Central Asia only a day after Wizz Air said it would exit Abu Dhabi. The UAE flag carrier is preparing for an IPO.