AVTECH: Signs agreement with Wizz Air UK - Redeye

AVTECH signed an agreement with Wizz Air UK, a low-cost carrier operating from the UK and a subsidiary of Hungarian-based Wizz Air. The agreement is for Aventus and SIGMA in-flight services, has a three-year duration, and is worth SEK1.1m—1.6m, depending on the EUR/SEK exchange rate. We estimate the agreement is worth SEK0.5m annually at the midpoint. The agreement appears only to cover Wizz Air’s UK operations, which, according to Airfleets.net (accessed 2023-11-28), has only 18 aircraft operating. Using this figure, we estimate AVTECH earns SEK0.025m per aircraft annually, in line with other agreements. The entire Wizz Air group has 187 aircraft operating, according to Wizzair.com (accessed 2023-11-18), and thus, we estimate the upsell potential for this specific service to be worth cSEK5m annually at the midpoint over time. As the agreement is relatively small, we have not adjusted our estimates.

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