Once a premium destination for overseas investors, Turkey’s power sector has recently been struggling with the impact of lower-than-expected growth rates, partial market liberalisation and fixed, long-term natural gas contracts. Power generation firms face further stress as the economic impact of the pandemic bites. Efforts to arrange a new debt restructuring deal have been delayed by the virus and wider economic woes, casting uncertainty over future demand. However, the sector retains some high-grade assets, however, which may attract future investor interest.
By launching a subsidiary in Abu Dhabi, Hungary’s Wizz Air has made a statement of intent. Until recently, it was the Gulf airlines looking to invest in Central and Eastern Europe (CEE), rather than vice-versa. But Wizz Air has been able to leverage its success on the growing CEE market to look globally. Within CEE, the rise of low-cost carriers like Wizz Air is helping spur consolidation, with more successful flag carriers seeking inorganic growth and economies of scale.