Free Trial

Wizz Air (WIZZLN 26s; Ba1/NR/BBB- Neg) Hungarian regulator begins (another) investigation

TRANSPORTATION
  • "HUNGARY WATCHDOG PROBES WIZZ AIR FOR ALLEGED UNFAIR PRACTICES
  • HUNGARIAN REGULATOR STARTS NEW PROCEEDINGS AGAINST WIZZ AIR" - bbg
Last fine from the regulator was over the weekend totalling €770k for; "commercial communications about the essential features of its automatic check-in service in breach of the professional diligence requirement, and the airline failed to disclose that consumers could buy "extra services" separately as part of some of its service packages, thereby steering consumers towards more expensive packages".
  • That investigation began in early 2023 and regulator has wasted no time beginning a new one. No fines yet but its investigating pricing inconsistencies on different devices for same services and fee inconsistencies at booking vs. displayed.
  • Fine above is only a dent for a co guiding to FY net income in the €350-400m range but still never nice to see for a airline operating across European countries all having their own regulator bodies (i.e. can add up).
  • We still see value on the €26s at Z+180/OAS+190/€95 but we are hearing offer side still hard to find (despite mids moving wider last 2 sessions). Presser from regulator;

Presser from regulator here

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.