Wizz Air is in the Process of negotiating a new Agreement with Tuzla Airport

March 6, 2020 7:30 PM

 

Wizz Air is in the process of negotiating a new agreement with Tuzla Airport in Bosnia and Herzegovina. The details of the agreement are not public but a Simple Flying analysis of financial reports from Bosnia and Herzegovina shows that Wizz Air is set to receive significant financial assistance. Let’s take a look.

It is for this reason that the airport first made an agreement with Wizz Air. With a relatively non-existent tourist demand, Tuzla could only develop itself as a passenger airport if an ultra-low-cost carrier based itself there.

Following Wizz Air’s arrival, Tuzla has become the second busiest airport in the country. It is second to Sarajevo International Airport, which in 2019 celebrated a record year, thanks to FlyBosnia.

Wizz Air is exactly what Tuzla needed: an ultra-low-cost carrier that can serve its price sensitive demand. Bosnia and Herzegovina has a GDP lower than that of Honduras, Senegal or Zambia, according to the IMF. And Tuzla isn’t even the capital city.

Wizz Air launched its first route from Tuzla in 2013, to Malmö. The Swedish city was first scheduled as a summer-seasonal destination, but Wizz Air converted it to a year-round route very quickly.

Two more routes were launched in 2013: Basel and Gothenburg. A year later, Wizz Air also added flights to Dortmund and Eindhoven.

In 2015, Wizz Air opened a base in Tuzla, and it has been growing there ever since. Its network expansion continues to follow a consistent pattern. Almost all new destinations the airline is launching out of Tuzla are in areas with strong Bosnian immigration.

The Bosnian diaspora has proven itself to be highly price-sensitive, which is why Wizz Air is well suited to serve this airport. The airline has a highly competitive cost structure, which means it can operate both profitably and with a high load factor serving circular migration from Tuzla, Simpleflying reports.

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