# Europe’s Wizz Air considering a Saudi operating license
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-25
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Wizz Air Considers Basing Airline in Saudi Arabia, CEO
Meta Description: Explore opportunities in Saudi Arabia with new flights from Europe to Riyadh, Jeddah and Dammam. CEO eyes investment and licensure for expanding operations.
URL: https://financedigest.com/europes-wizz-air-considering-a-saudi-operating-licensehtml

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RIYADH (Reuters) -European budget carrier Wizz Air is considering basing an airline in Saudi Arabia as part an agreement signed with the government this year to develop the kingdom’s aviation sector, its chief executive said in an interview on Thursday.

Wizz Air, which said in May it would explore opportunities in Saudi Arabia, announced on Thursday it was launching direct flights to Riyadh, Jeddah and Dammam from 11 European cities starting early next year, including from Rome, Milan and Vienna.

“The scope of … exploring opportunities in the country may go beyond being an inbound carrier and may also involve making [direct investments,” CEO](https://www.financedigest.com/hsbcs-direction-in-question-after-elhederys-sprint-to-ceo-contender.html "HSBC’s direction in question after Elhedery’s sprint to CEO contender") Jozsef Varadi told Reuters from Riyadh.

He said that included considering applying for an Air Operator’s Certificate (AOC) in Saudi Arabia to base an airline there, without [saying when a decision could be made](https://www.financedigest.com/in-a-stadium-of-their-own-migrant-workers-say-their-sweat-made-world-cup-happen.html "In a stadium of their own, migrant workers say their sweat made World Cup happen") on the AOC.

A Saudi license could allow a subsidiary or [joint venture](https://www.financedigest.com/bp-solar-joint-venture-expanding-in-australia-with-two-new-projects.html "BP solar joint venture expanding in Australia with two new projects") to operate domestic services in the kingdom, which has a population of about 36 million. It could also operate international flights that start in [Saudi Arabia](https://www.financedigest.com/saudi-arabias-king-crown-prince-send-condolences-on-queen-elizabeths-death.html "Saudi Arabia’s king, crown prince send condolences on Queen Elizabeth’s death"), opening up access to new markets.

[Wizz Air](https://www.financedigest.com/wizz-air-loses-fight-against-67-million-in-state-aid-for-romanian-rival.html "Wizz Air loses fight against million in state aid for Romanian rival"), whose main operations are in central and eastern Europe, has AOCs in Hungary and the United Kingdom. Wizz Air Abu Dhabi, a branded joint venture between the airline and an Abu Dhabi sovereign [wealth fund](https://www.financedigest.com/norway-wealth-fund-employee-sues-for-workplace-gender-discrimination.html "Norway wealth fund employee sues for workplace gender discrimination"), has a United Arab Emirates AOC.

[Saudi Arabia](https://www.financedigest.com/avaya-opens-customer-experience-center-saudi-arabia.html "Avaya Opens Customer Experience Center in Saudi Arabia") liberalised its tourism industry in 2019, aiming to make it significantly easier for foreigners to visit the kingdom, which had been relatively closed off for many decades.

The move to open up the country is part of a push under its de facto ruler, [Crown Prince](https://www.financedigest.com/analysis-at-world-cup-saudi-crown-prince-moves-back-on-to-global-stage.html "Analysis-At World Cup, Saudi crown prince moves back on to global stage") Mohammed bin Salman, to develop the economy into a regional trade hub and lessen its dependence on oil.

“This country is on the move. The country is transforming itself. It’s very ambitious … we want to be part of it,” Varadi said.

He also said despite there being a significant commercial risk in launching the flights, he believed there would be strong demand for [travel from Europe](https://www.financedigest.com/how-to-travel-europe-on-a-budget.html "How to travel Europe on a budget") to Saudi Arabia, and from the kingdom to Europe.

(Reporting by Alexander Cornwell in DubaiEditing by Edmund Blair and Frances Kerry)


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