Hungarian low-cost carrier Wizz Air, which owns a UK
subsidiary, has received confirmation that it is eligible for the British
government’s Covid Corporate Financing Facility (CCFF), which aims to provide commercial
loans to help larger firms survive the coronavirus pandemic.
While the airline said it has liquidity of €1.5 billion in
cash as of the end of March 2020, it said it is “focused on further
strengthening the company’s robust balance sheet”.
If Wizz Air takes up the CCFF, it would join the likes of
Easyjet, which recently secured a £600 million loan under the scheme. Virgin
Atlantic is reportedly seeking up to £500 million on commercial terms from the
UK government. Other airlines have indicated they are likely to enter
negotiations
Wizz Air announced last week that it would be making around
19 per cent of its workforce redundant, while the chief executive, board of
directors and senior officers would each take a 22 per cent pay cut for the
whole of FY21. Pilots, cabin crew and office staff will have their wages reduced
by 14 per cent.
The carrier expects to make a Q4 loss of between €70-80
million thanks to fuel hedging costs, but still expects to turn a profit in
FY20.