Wizz Air. Photo: Shutterstock After meeting with the Minister of Transportation yesterday, the CEO of Hungarian low-cost carrier Wizz Air, Jozsef Varadi spoke with PassportNews in a special interview, discussing their plans to establish a base of operations in Israel, the investment, concerns surrounding security and regulation, and what would happen in the event of war or further security escalation in the region.
Varadi referred to a planned investment of about a billion dollars, the operation of 10 aircraft, the creation of about 4,000 jobs in Israel, and a gradual plan to expand operations, but clarified: "There is still no official decision, and everything depends on the continuation of negotiations with the Israeli government and the settlement of regulatory issues."
The first question we asked the CEO of Wizz Air dealt with the most sensitive point for passengers and regulators in Israel:
What will happen if war or a serious security escalation breaks out again? Will the company continue to fly to Israel, or will it consider suspending operations?
Vardi emphasized that even in the event of a security escalation, Wizz Air is committed to European regulation and cannot act contrary to EU guidelines: "We are an airline subject to European regulation. We have no way of circumventing this, because as soon as we act contrary to the guidelines, we will lose our operating license."
According to him, the main regulator that dictates the rules for the company is the European Safety Agency (EASA), and therefore any decision to continue operating in sensitive areas is obliged to comply with European requirements: "We are committed to every directive, restriction or guideline that the European authorities have regarding war zones, security risks and flight restrictions. We have no way around that."
Jozsef Varadi outlines Wizz Air’s Israel ambitions while stressing they must follow EU security rules and still need government approval to move forward.
At the same time, Vardi clarified that establishing a permanent base in Israel will improve the operational information available to the company and help make more informed decisions in real time: "If we have a legal presence in Israel, we can be exposed to security information and updates that are not currently available to us, such as official security briefings. This will allow us to make better decisions, based on more data and more information channels."
He emphasizes that the company will also take into account responsibility towards Israel, and not just the European perspective: "We will act as a responsible corporate citizen, with a commitment to the country in which we operate. But at the same time, we must meet our obligations as a European airline for all intents and purposes."
Later in the conversation, Varadi referred to the grand plan presented to Israel, an investment of approximately $1 billion, adding 10 aircraft to the Israeli base, and creating approximately 4,000 direct and indirect jobs.
According to him, the start of the Base model in Israel is planned around April, but the investment and scope of activity will be spread over several years: "We are looking at starting the Base model activity in the April area, but this is a three-year plan, deployment until the full realization of the investment and scope of activity."
Can Israel already be presented as Wizz Air's 37th base of operations?
Varadi noted that while this is a clear goal for them, it is not yet ready for an official announcement: "It's an aspiration, it's the target, but it's not yet official. It's an issue that we're discussing with the government. At this point, there's no final decision, so it can't be said that it's been approved."
According to him, there are regulatory barriers that still prevent the announcement of the establishment of the base, primarily Israeli orders and regulations that limit the activities of foreign low-cost companies operating in a fixed-base model, issues related to flight designations, and the necessary alignment between local requirements and European Union regulations: "There are a number of Israeli orders and directives that in practice limit a company like ours. They need to be opened, re-examined, and adjusted to reality. The issue of market designations is also on the table. All of this is under discussion, but there are no conclusions yet."
Varadi confirmed that another meeting between Wizz Air and government representatives is expected to be held in January, with the aim of trying to bridge the gaps: "We are in good dialogue with the government. In January, we will continue the negotiations. Only after we advance the regulatory understandings will it be possible to talk about an official announcement."
Wizz Air currently operates 36 bases across Europe, has a fleet of over 250 aircraft, and is expected to carry approximately 72 million passengers this year. Vardi mentions that Israel is part of the expansion map:
"We open new bases every year. We recently opened additional bases in Romania, Warsaw, Bratislava, Tuzla, Podgorica, and Yerevan. Israel is definitely part of our strategic map."
Summary: Dramatic Potential for the Israeli Market But No Decision Yet
Varadi's answers reveal a clear picture:
- Wizz Air is very interested in establishing an official base of operations in Israel
- The company declares an investment plan of about a billion dollars and the creation of thousands of jobs
- There is an aspiration to begin operations of the base model in March-April, but there is no official decision yet
- In the event of a security escalation, the company is subject to European regulation, but a presence in Israel will allow access to security information that can affect the way decisions are made in real time
- Another meeting with government representatives is expected in January, which may advance regulatory understandings