Wizz Air is facing a backlash over a plan to pay CE Jozsef Varadi a GBP100m bonus if he can rapidly grow the low-cost airline’s share price as the industry recovers from the pandemic. Varadi is in line for one of the biggest payouts from a London-listed company if Wizz’s shares rise from their current GBP45 to GBP120 over the next five years, triggering concern among some in the investment community. The UK Investment Association’s influential voting advisory service Ivis has issued a red-top alert to investors over the Hungarian-based carrier’s pay plan. A red top is the highest level of warning issued by the IA, whose members collectively own a third of UK, and is used to flag significant corporate governance concerns to shareholders. The warning comes after both Institutional Shareholder Services and Glass Lewis, influential advisers to many of the world’s biggest asset managers, urged shareholders to reject the pay plan. Glass Lewis said it had “severe reservations” about the remuneration plans, which could allow for “excessive payouts”, while ISS said the company had not provided a “compelling rationale for the retentive or motivational effects of the scheme for the CEO”. Shareholders will vote on the package — which also includes a GBP50m bonus pool for other senior executives and smaller bonuses for all staff including cabin crew — at the annual meeting next Tuesday. The IA, ISS and Glass Lewis also raised concerns over diversity at the company, which is short of the UK target that 30% of board roles should be held by women. <br/>
unaligned
Who’s afraid of the Delta variant? Not Michael O’Leary. Over the last 16 months of sickness, death and lockdown, the billionaire Ryanair boss has rediscovered his controversy button and has lately been loudly telling governments to stick their “scariants” and let everyone fly again. Much of his ire has been reserved for Ireland, whose scientific and medical leaders must envy the UK’s Chris Whitty for only getting accosted in the park. Every airline is of course demanding the reopening of travel, although most observe the niceties of saying public health comes first. But then Ryanair’s pandemic has not followed the trajectory of most. Almost uniquely among European carriers, Ryanair’s share price is higher now than it was in February 2020, before travel restrictions and the grounding of fleets saw investors take fright and wipe out most of airlines’ and travel firms’ market value. While the price of IAG, easyJet and others has remained low, Ryanair’s has bounced back – and is now almost 50% higher since O’Leary increased his stake in the autumn doldrums, making his share worth around E700m. So despite the pandemic, Ryanair will report its first-quarter 2021-22 results on Monday in a relatively buoyant mood, even as the sector tears it hair out over the continuing and confusing Covid restrictions at the start of peak season. Available fares from the UK to Europe remain staggeringly low for summer, even by Ryanair standards: a family could in theory fly to the Med and back for less than the price of the PCR tests – should they wish to gamble on changing rules and Ryanair’s refund policy. What these troubled years may indeed bear out is O’Leary’s bullish view that the more market volatility, the better for his airline. <br/>
Two Israeli carriers on Sunday launched nonstop commercial flights to Marrakesh from Tel Aviv following the upgrading of diplomatic relations last year between Morocco and Israel. Israel and Morocco agreed last December to upgrade diplomatic ties and relaunch direct flights - part of a deal brokered by the United States that also included Washington’s recognition of Moroccan sovereignty over Western Sahara. “This route will help promote tourism, trade and economic cooperation between the two countries,” said Israeli Tourism Minister Yoel Razvozov. Israir flight 61 took off at 8:15 a.m. (0515 GMT) for the 5 1/2 hour flight, with stewards wearing traditional Moroccan garb and serving Moroccan food. El Al Israel Airlines flight 553 took off at 11:35 a.m. (0835 GMT). El Al, Israel’s flag carrier which was hit hard last year due to the COVID-19 pandemic, said it will operate up to five flights a week to Morocco on Boeing 737 planes. Smaller rival Israir said it would operate two flights a week on its route to Marrakesh. Israel’s Arkia and Royal Air Maroc are also expected to start flights in the next month.<br/>
Singapore Airlines' Indian joint venture expects the last four Dreamliners from its Boeing order to arrive by October 2022, a delay of up to seven months as the US planemaker addresses flaws with the jet and the pandemic weighs on air travel. Vistara, which Singapore Airlines jointly owns with conglomerate Tata Group, has received two Boeing 787 Dreamliners and will get the four others on order in 12 to 15 months, Chief Commercial Officer Vinod Kannan said in an interview this week. Vistara previously said it would receive all six by March next year. Boeing’s Dreamliner program has been disrupted by the discovery of defects in the fuselage and nose, leading to a halt in deliveries for much of the past 10 months. Restarting those is crucial for the Chicago-based company, which has about 100 of the jets in storage and burned through about $20b last year. Vistara is also in talks with Airbus SE about its order of 13 A320neo-family of jets and is negotiating with manufacturers and lessors to see if they can reduce costs or make changes to payment timetables, according to Kannan. “We are spacing out our deliveries and pushing some to next year,” he said. “There have been commercial discussions to see how we can better match delivery stream to the projected demand.” A Boeing spokeswoman said the company doesn’t comment on conversations with customers. An Airbus spokesman said the company is in constant dialog with all customers, the details of which remain confidential. Kannan said Vistara is on track to have a fleet of 70 aircraft by 2023, though it received five or six fewer jets in the 2021 financial year than initially planned. The current 48-strong fleet includes 37 Airbus A320s and three A321neos.<br/>