LONDON (Reuters) - The world will have a smaller airline industry as a result of the coronavirus crisis with many privately funded carriers set to go under and governments throwing "good money after bad" to keep national champions afloat, Wizz Air's CEO (L:WIZZ) said.
Worst hit will be traditional carriers relying on a hub-and-spoke network and business traffic, but Wizz expects demand for its own cheap fares and direct routes to snap back quickly once the pandemic fades, the Hungarian airline's founder said.
Wizz aims to widen a gap in unit costs compared to the rest of the airline industry thanks to regular deliveries of new Airbus (PA:AIR) aircraft, Chief Executive Jozsef Varadi added.
Speaking in a webinar hosted by the UK-based Aviation Club, he bemoaned a lack of political coordination over travel restrictions and other measures to tackle the crisis and urged policymakers to pay more attention to the economic impact.