Low-cost carrier flies into stiff headwinds in trying to compete with Ukrainian competitors.

In 2008, Wizz Air Ukraine, Daughter Company of the Hungarian low-cost carrier came into the Ukrainian market with intensions to expand and conquer the market.

Wizz Air began in July 2008 with 4 local flights, connecting Kyiv, Lviv, Simferopol and Odessa and had plans to start flying to Zaporizhzhia and Kharkiv. Its rates started at around USD15, which seemed like a breakthrough for the Ukrainian aviation market, where internal flights usually sell starting at USD100 for one-way tickets.

The company also had plans to start cheap international flights, including service to the hugely popular European destinations of London and Milan. Wizz Air was also the first Ukrainian airline in more than a decade to purchase new aircraft - a 180-seat Airbus A320.

Its officials proclaimed that they will keep buying. According to the original plan, by 2012 the airline's projected fleet would consist of 14 Airbuses, which would require more than USD1 billion investment.

Hence, as Wizz Air launched flying, its strategy for Ukraine underwent radical change. First, the company stopped all of its local flights except to Simferopol in Crimea, a popular holiday destination. Instead of it, Wizz Air focused on flying internationally and, as of early 2011, its timetable consisted of more than 11 international destinations - from Norway's Oslo to Turkey's Antalia. Wizz Air's grand plans to increase its fleet were also put on hold. Currently, the airline has only two aircraft.

This spring is likely to begin a new era in the history of Wizz Air Ukraine, as the airline proclaimed moving from Ukraine's main airport Boryspil to Zhuliany, a much smaller secondary airport within Kyiv limits, primarily designed for local flights and servicing private jets.

Starting from March 2011, Wizz Air will become the first international airline to use Zhuliany. This move is likely to boost the airport's modernization, as its administration already announced tenders for improving Zhuliany's passenger terminal and its engineering networks.

Wizz Air officials noted that saving on airport expenses will allow the company to achieve better efficiency, add new destinations to its timetable and grow in size. They wouldn't name the potential destinations, however, citing the numerous obstacles they face in Ukraine.