Hungary’s budget Wizz Air plans IPO, expansion – beyondbrics - Blogs - FT.com

Hungary’s budget Wizz Air plans IPO, expansion – beyondbrics - Blogs - FT.com:



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Almost ten years to the day after its first flight, Wizz Air, a low-cost airline centered on central and eastern Europe (CEE), said on Thursday that it plans to raise €200m by listing on the London Stock Exchange in June to raise funds to expand its operations.



Jozsef Varadi, Wizz Air chief executive, speaking via video to a press conference in Budapest, said Wizz Air Holdings, the parent company based in the Channel Islands, would use the cash to strengthen its balance sheet and expand operations. 




The airline sees considerable potential for further growth in its core CEE market, given that the ‘propensity for air travel’ in the region is currently just 0.36 seats per capita, compared to the western European averages of 1.58 seats per capita.



“Wizz Air is the largest low-cost carrier in central and eastern Europe. The basis of our business model is to offer the lowest fares possible, and in 2014 our average ticket price was barely above €47. We think that this sort of price stimulates the market and ensures future growth,” Varadi said."



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