Aircraft and engine manufacturers must focus on tightening quality controls internally, Wizz Air chief executive Jozsef Varadi said, following the incident of an Alaska Airlines Boeing 737 Max jet's cabin panel blowing off mid-air earlier this month.
While Wizz Air is an all-Airbus operator, Mr Varadi said greater scrutiny into quality processes will result in an industry-wide slowdown in production expansion and technological innovations.
“The problem is more around quality. Clearly, the regulator is taking a more scrutinising approach, [and] rightly so … and I think manufacturers of engines and aeroplanes will have to take a more self-help approach to enhance their internal quality control. This is the right step,” Mr Varadi told The National on Thursday.
What takes five years in the R&D cycle now may take 10 years in the future because of the higher level of scrutiny and standards
Jozsef Varadi
“What it means for the industry is that the expansion of manufacturing is going to slow down because of more scrutiny. I also think that technology innovation will slow down.
"What takes five years in the R&D [research and development] cycle now, may take 10 years in the future because of the higher level of scrutiny and standards,” he said.
“We will move slower but with better quality.”
The US Federal Aviation Regulator on Wednesday halted any production expansion of the Boeing 737 Max until quality control issues are resolved. The US aviation regulator's order means that the plane maker can continue producing 737 Max jets at the current monthly rate, but it cannot increase that rate.
The FAA's decision disrupts Boeing's growth plans in a period of soaring demand for aircraft and heated competition with its European arch-rival Airbus amid an unrelenting boom in air travel.
Middle East plans
Wizz Air's boss on Thursday also outlined the low-cost carrier's plans for the Middle East.
The airline will restart some flights from European cities to Tel Aviv starting on March 1, after suspending operations to Israel following the start of the Gaza war in October.
It is returning only 20 per cent of its prewar capacity to the Israeli market with plans to operate three weekly flights each from Budapest, Bucharest, London, Krakow and Rome to Tel Aviv.
The decision to resume some flights to Israel comes after high levels of scrutiny into security and safety and a “much improved situation for flying”, but demand will restart from a relatively lower base, Mr Varadi said.
“It will be a skeleton network with skeleton frequencies, so we would have roughly 20 per cent of the previous capacity prior to the war and we think demand will gradually come back up and we will be adding capacity accordingly,” he said.
“The demand we're seeing is essentially Israelis flying in and out … we are not yet seeing demand for tourism.”
Demand is expected to build up gradually within six to nine months, he added.
Travel demand for the Middle East region is broadly unaffected by the Israel-Gaza war, with no impact seen in markets such as the UAE and Saudi Arabia, but the airline continues to monitor the situation, Mr Varadi said.
Dubai-based Emirates has suspended flights to Tel Aviv, while its sister airline flydubai operates four flights a day to Ben Gurion Airport but continues to monitor the situation closely and amend its schedule accordingly.
'Flat' capacity
Wizz Air is one of the airlines facing disruptions from grounding its Airbus narrow-body aircraft because of mandatory inspections of Pratt & Whitney’s geared turbofan engines. The engine maker said they were at risk due to a powder metal defect that could lead to the cracking of some engine components.
“We are expecting capacity to be largely flat in the next financial year and this is the guidance we're giving to the market,” Mr Varadi said.
However, there are some variations by market, with Wizz Air Abu Dhabi to grow capacity by 25 per cent in the next financial year to pursue growth opportunities, he said.
“We're very excited about the Abu Dhabi opportunities and we continue to push for growth in the market,” Mr Varadi said.
“The Middle East, especially the Gulf, will remain growth markets for Wizz Air.”
Wizz Air Abu Dhabi, a joint venture between Hungary's Wizz Air Holding and Abu Dhabi state holding company ADQ, in November operated its first flight from Abu Dhabi International Airport's new Terminal A.
The outlook
Wizz Air posted a net loss of €105.4 million ($115 million) in the third quarter, compared with €33.5 million in profit in the same period last year, it said on Thursday.
The airline's fiscal year ends in March 31.
This was mainly due to disruptions from grounding some aircraft and removing capacity from the Israeli market, Mr Varadi said.
However, the airline maintained its full-year net income guidance range of €350 million to €400 million, supported by positive trading, higher utilisation of operational fleet, one-off benefits from the engine maker cost compensation and credits from deferred sale and leaseback transactions materialising in the fourth quarter.
“I’d say that we’re back into solid profitability,” Mr Varadi said of the fiscal year.
UAE currency: the story behind the money in your pockets
RESULT
Leeds United 1 Manchester City 1
Leeds: Rodrigo (59')
Man City: Sterling (17')
Man of the Match: Rodrigo Moreno (Leeds)
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
Killing of Qassem Suleimani
PROFILE BOX:
Company/date started: 2015
Founder/CEO: Rami Salman, Rishav Jalan, Ayush Chordia
Based: Dubai, UAE
Sector: Technology, Sales, Voice, Artificial Intelligence
Size: (employees/revenue) 10/ 100,000 downloads
Stage: 1 ($800,000)
Investors: Eight first-round investors including, Beco Capital, 500 Startups, Dubai Silicon Oasis, Hala Fadel, Odin Financial Services, Dubai Angel Investors, Womena, Arzan VC
ARGYLLE
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UAE currency: the story behind the money in your pockets
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Zayed Sustainability Prize
Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
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Australia (15-1): Israel Folau; Dane Haylett-Petty, Reece Hodge, Kurtley Beale, Marika Koroibete; Bernard Foley, Will Genia; David Pocock, Michael Hooper (capt), Lukhan Tui; Adam Coleman, Izack Rodda; Sekope Kepu, Tatafu Polota-Nau, Tom Robertson.
Replacements: Tolu Latu, Allan Alaalatoa, Taniela Tupou, Rob Simmons, Pete Samu, Nick Phipps, Matt Toomua, Jack Maddocks.
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Killing of Qassem Suleimani
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Maestro
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THURSDAY'S ORDER OF PLAY
Centre Court
Starting at 10am:
Lucrezia Stefanini v Elena Rybakina (6)
Aryna Sabalenka (4) v Polona Hercog
Sofia Kenin (1) v Zhaoxuan Yan
Kristina Mladenovic v Garbine Muguruza (5)
Sorana Cirstea v Karolina Pliskova (3)
Jessica Pegula v Elina Svitolina (2)
Court 1
Starting at 10am:
Sara Sorribes Tormo v Nadia Podoroska
Marketa Vondrousova v Su-Wei Hsieh
Elise Mertens (7) v Alize Cornet
Tamara Zidansek v Jennifer Brady (11)
Heather Watson v Jodie Burrage
Vera Zvonareva v Amandine Hesse
Court 2
Starting at 10am:
Arantxa Rus v Xiyu Wang
Maria Kostyuk v Lucie Hradecka
Karolina Muchova v Danka Kovinic
Cori Gauff v Ulrikke Eikeri
Mona Barthel v Anastasia Gasanova
Court 3
Starting at 10am:
Kateryna Bondarenko v Yafan Wang
Aliaksandra Sasnovich v Anna Bondar
Bianca Turati v Yaroslava Shvedova
Zayed Sustainability Prize
The five pillars of Islam
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Company%20profile
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Read more about the coronavirus
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
