Wizz Air Fires Chief Supply Officer For Secretly Trading Shares

Wizz Air’s chief supply officer’s employment has been terminated following an investigation that found that he had been secretly trading shares for approximately a year and a half. The London Stock Exchange shared details about this situation yesterday.

Wizz Air, Ghost Flights, Future Flying
Wizz has put an end to the secret trader’s employment. Photo: Getty Images

Between April 2019 and November 2020, Andras Sebok, who was Wizz Air’s chief supply officer at the time, bought and sold shares in 114 separate transactions. Notably, he did not inform the Financial Conduct Authority (FCA), the primary financial regulatory body in the United Kingdom, about this activity.

Action taken

In a disclosure of share transactions listed on the London Stock Exchange’s website, Wizz affirms that it did not know about these dealings until it was made aware following an investigation.

“Wizz Air Holdings Plc (the “Company”) announces transactions by a person discharging managerial responsibility (“PDMR”) in its £0.0001 ordinary shares, details of which are set out in the appendix to this announcement,” the disclosure states.

“The Company was unaware of these transactions at the time that they occurred as the PDMR did not make any notification to the Company in accordance with applicable regulatory obligations and the Company’s policies. The Company was subsequently made aware of the transactions in the context of an FCA enquiry concerning trading by the PDMR, and therefore makes this announcement accordingly.”

The business adds that it maintains strong systems and controls relating to employee share dealings. Measures include a clear PDMR share dealing policy. However, this policy was breached in this instance. Altogether, the firm concludes that it has terminated employment with Sebok and will continue to cooperate with the FCA in regard to any additional investigations or queries.

Wizz Air
The carrier highlights that it doesn’t take such issues lightly. Photo: Getty Images

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A national presence

Wizz Air Holdings PLC was listed on the London Stock Exchange in 2015. Its share price has risen steadily over the years, apart from a significant drop in 2018 and a plummet in 2020. However, this year, the share price is at the highest its ever been, currently sitting at 4,595 GBX, following a peak of 5,565 GBX on March 11th.

The airline has been showing its determination to expand in the UK market over the last year, amid the opening of several bases, including a second site at Doncaster Sheffield Airport, another one at London Gatwick, and a fourth location at Cardiff Airport. Wizz also launched its first UK domestic service this summer. It even attempted a takeover of easyJet, a move that has been rejected.

Long Haul, Low Cost, Successful
The Budapest, Hungary-headquartered airline has risen through the ranks rapidly since its founding in 2003. Photo: Getty Images

Across the continents

Yet, these expansions are not exclusive to the UK. There has been great progress all across Europe, including Ukraine, Italy, Bosnia, and Germany. It’s also important to note the launch of Wizz Abu Dhabi, which began flying at the end of 2020 with its A321neo aircraft. This subsidiary heads to several Middle Eastern and European destinations from the UAE.

Overall, these initiatives have helped to strengthen Wizz Air’s position on the FTSE 250. The company will undoubtedly be hoping to avoid further issues such as secret trading in this next chapter.

What are your thoughts about Wizz Air firing its chief supply officer for secret share trading? What do you make of the overall situation? Let us know what you think in the comment section.