Wizz Air, which is one of Europe’s largest low-cost carriers, is planning an expansion into the market of India. Wizz Air is also known for its budget-friendly fares and its extensive network across Europe. However, Wizz Air’s entry into India could significantly alter the dynamics of the aviation industry in the area. In a recent expansion, the subsidiary of Wizz Air’s Maltese got a license from the Italian National Civil Aviation Organization (ENAC).
Moreover, it will help to function up to seven flights per week between “Italy and India” for the 2023/2024 winter season. It has also faced many challenges regarding commencing these flights. It has also been seen that the present fleet lacks the variety to function direct flights between “Italy and India” without a practical stop. However, the airline has “45 Airbus A321XLR aircraft” on order, which is predictable to meet this long-haul obligation. However, the “Hungarian airline” goal is to join Indian cities with numerous destinations crossways Europe, with a usual one-way fare predicted to be about 200 euros, which is INR 18000. And it is also being projected by the next financial year.
Wizz Air: A Snapshot
This Wizz Air was founded in the year 2003. It has become a major player in the European low-cost airline sector. However, it has its headquarters in “Budapest and Hungary” from where it operates the maximum flight to over 150 destinations across 44 different countries. As it is the most low-cost airline, it always focuses on cost efficiency, and it is also achieved through high craft utilization.
The airline’s fleet contains mainly “Airbus A320 family aircraft”, which are known for their fuel efficiency and consistency. However, it maintains its cost and streamlines operations with a homogenous fleet. Additionally, the airline’s secondary airports which usually have less congestion and cheap landing fees, further help them to reduce the cost of the operations.
Overview of the Indian aviation market
In the world, the Indian aviation market is the fastest growing market, which is determined by the economic growth and the demand for air travel that is increasing day by day. However, the Indian market is taken by low-cost carriers such as “Indigo, GoAir and SpiceJet. They are the important share of the domestic air traffic. However, the Government‘s UDAN (Ude Desh ka Aam Nagrik) scheme, has aimed at improving regional connectivity.
Also, the further stimulated demand has made air travel more reasonable and accessible. In India, these airlines have implemented the model of low cost which makes them more accessible to a larger population segment. Moreover, the Indian aviation sector faced a lot of obstacles regarding high fuel costs, currency exchange rates and many more. But it still overcomes those hurdles and maintains the market growth.
Wizz Air’s Strategic Intent
As we know Wizz’s Air is potentially entering India aligns with its aggressive expansion plan. However, the airline of Budapest has made its reputation by offering ultra-low-cost service across Europe and the other Middle East and fuel-efficient aircraft. Moreover, by doing so, it aims to offer competitive fares which could appeal to India‘s price-sensitive travellers. It has also been analyzed that “Wizz Air’s” entry could blow into the cumulative demand for reasonable air travel amongst India’s increasing middle class.
However, by founding a presence in India, Wizz Air can improve the network connectivity, and make new routes between Europe and India. In addition, if we look into the economic interactions, India’s planned location and rising economy offer interactions for “Wizz Air’s” lasting growth plans. However, the partnership with “local partners and investment in infrastructure” could yield considerable financial benefits. According to the International Air Transport Association (IATA), India is representing the growth opportunity with domestic passenger traffic, and it is expected to reach 520 million by the year 2037. Therefore, it is the long-term growth strategy by Wizz Air which involves expanding into a new market and increasing its occurrence in the existing one.
Competitive Dynamics and Challenges
As Wizz Air is entering the Indian market, it has to face a lot of competitors like IndiGo, Air India and Spice Jet, as well as other worldwide carriers such as Singapore Airlines, Emirates, etc. However, Wizz Air will need to circumnavigate the difficulties of working in a highly competitive and controlled environment. While “Wizz Air’s” ultra-low-cost model has established fruitful in Europe. It may need alterations to provide to Indian customers’ partialities and controlling requirements. Additionally, founding a healthy network of ways and safeguarding wanted slots at overfilled airports like “Delhi and Mumbai” will be vital for the airline’s working achievement.
Regulatory and infrastructural attention
There are a lot of difficulties in the Indian regulatory framework. The Directorate General of Civil Aviation (DGCA) supervises a variety of severe safety and working standards. However, Wizz Air has to look after this necessary approval to operate in the Indian market. It is another layer of difficulties for the Wizz Airs. Moreover, the limitation on the infrastructural, especially at the airports, is the encounters. However, India’s main airports are contending with size restrictions, which can lead to delays and working disorganization. Therefore, Wizz Air will need to issue these thoughts as it plans its entry strategy.
Wizz Air’s possible foray into India marks an important step in its international growth journey. Moreover, by exploiting the growth potential of the Indian aviation market, the airline could unlock new income streams and improve its place in the competition. However, Wizz Air’s achievement will depend on its ability to adapt to the obstacles faced in the Indian market. If they could manage the regulatory compliance and fierce competition then it is possible for them to get more choice and foster greater competition in the industry. Therefore, it will help them for the overall growth of the aviation sector in India.
