Hungarian budget airline Wizz Air grounds 85 pct of its fleet: report

Source: Xinhua| 2020-03-25 23:34:35|Editor: yan
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BUDAPEST, March 25 (Xinhua) -- Hungarian low-cost carrier Wizz Air has grounded about 85 percent of its fleet due to travel restrictions introduced by different countries in their efforts to contain the spread of the coronavirus, Hungarian news agency MTI reported on Wednesday.

"The company continues to operate 15 percent of its capacity and remains operational in Romania, Hungary and Bulgaria, but the grounding of the entire fleet remains a distinct possibility over the next period, as potential additional travel restrictions and social distancing policies issued by authorities may make international flying for commercial purposes either untenable or impossible," MTI quoted a statement from the airline.

Additional cost-cutting measures such as overhead spending, discretionary spending and non-essential capital expenditure were also introduced, according to Wizz Air.

The Hungarian airline also said: "Given the significant balance sheet strength and liquidity, as well as the company's ultra-low cost business model, Wizz Air is confident in its ability to survive even a potential prolonged grounding substantially beyond the current estimates for the impact of COVID-19 in Europe."

Also, Wizz Air introduced measures aimed at securing the airline's cash flow.

"The situation is posing a significant threat to the aviation industry and we call on governments to take non-discriminatory steps which will benefit all airlines," Wizz Air CEO Jozsef Varadi said.