When Jozsef Varadi, former CEO of now defunct Hungarian flag carrier Malev, announced in June 2003 he would start a low-cost carrier (LCC) focusing on Central and Eastern Europe, many European observers had their doubts. His choice of a purple and pink livery for its fleet of 180-seat Airbus A320s only added to the widespread skepticism. But the "doubting Thomases" have been proven wrong. Wizz Air has joined Ryanair at the top ranks of Europe's fastest-growing and most-profitable airlines. Those two LCCs are vying for the lowest-unit-cost ranking. Ryanair CEO Michael O'Leary became impassioned during the presentation of his company's latest results last July, calling some analysts "village idiots [for] repeating some nonsense they've heard from self-proclaimed ultra-low-cost carriers [ULCC)]-who aren't as low-cost as Ryanair-that by buying an A321, they'll have lower per-passenger or per-seat costs than Ryanair." Not one other ULCC has or will ever have a lower unit cost than Ryanair in the future, he insisted.
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