Hungarian ultra-low-cost carrier Wizz Air and the Ministry of Investment of Saudi Arabia have signed a memorandum of understanding (MoU) over potential airline investment into the local aviation market as part of the Saudi Arabian project for domestic and foreign investors, Vision 2030.
Following terms of the new MoU, which was signed on May 10, 2022, the parties agreed on the empowerment of potential investment and operating models for Wizz Air in an attempt to further develop the airline’s business in the local aviation ecosystem.
The move should help subsidiaries of Wizz Air to stimulate passenger demand and traffic in Saudi Arabia, thereby contributing to the expected growth in its air travel sector.
“The parties will work together to enable potential investment and operating models to benefit and add to the Saudi Arabian aviation ecosystem, boosting its tourism industry and significantly increasing its connectivity,“ Wizz Air said in a statement seen by the Nasdaq Stock Market.
By implementing its Vision 2030, the Ministry of Investment of Saudi Arabia aims to raise the country’s economy and diversify sources of income. The country has already launched economic reforms to “push the wheel of economic growth towards diversification,” the official government website reads.
The government statement explains that Saudi Arabia is currently focused on providing “unprecedented opportunities” for foreign air carriers while seeking to triple its current passenger levels by 2030.
The statement said: “[Vision 2030] includes providing and developing investment opportunities, stimulating local investment, and attracting foreigners by providing investors assistance and incentive programs.“
In the meantime, Wizz Air also has ambitions to expand its services across European and Arabian countries.
Most recently, the airline confirmed it has initiated the implementation of its updated business plan, which includes a massive flight crew and cabin crew recruitment drive as well as expectations to significantly enlarge its aircraft fleet. So far, Wizz Air is focused on a fleet growth plan and aims to operate 500 aircraft by 2030 while aiming to generate €15 billion annually by the end of the decade. To reach its goal, the airline has said it will need to hire around 6,600 new pilots and 13,400 new cabin crew members.
“The plan is to grow three times in just nine years and it is not just a dream, this is one of the KPIs that we have to deliver. For our recruitment team it means that we have to recruit one person every hour, which represents our goal of 2,000 new hires per year,” Ewa Danecka-Latka, head of crew resources of Wizz Air, confirmed to AeroTime during Pilot Expo 2022 on May 7, 2022, in Berlin.