Kamal Ahmed: Chancellor Hammonds 10bn Of Green Shoots Philip Hammond Presents His Budget On 8 March, And The Chancellor Will Base His Budget Calculations On Updated Figures On Growth And Borrowing Supplied By The Obr.

REUTERS/Kacper Pempel More LONDON/BERLIN (Reuters) - Budget airline Wizz Air (WIZZ.L) will open a new British base at London Luton, seeking to drive growth in routes between Britain and eastern Europe and improve efficiency, it said on Thursday. The east Europe-focussed airline said the base will open on June 18 with one new Airbus A320 aircraft. Luton will be its first UK airport with base operations, and the number of routes it serves from the airport will rise to 42. Although London-listed Wizz has been flying from Britain since 2004, until now it had not set up a British base. CEO Jozsef Varadi said the decision to do so reflected the size of the Luton operation, where it served 5 million passengers last year, making it the second largest airline there behind easyJet. "For the scale and size of the business, the operating model is not efficient or sustainable. If we want to grow, we need to base some capacity there," Varadi told Reuters, adding that space at Luton was getting tight and Wizz wanted to book an overnight stand before rivals did. Basing planes at Luton will give the airline more flexibility and allow it to open more routes, he added. The three new routes announced on Thursday will connect London Luton with Tel Aviv, Kosovo and Georgia. Varadi said the decision had nothing to do with Britain's decision to leave the European Union. He said Wizz was happy with its Hungarian operating certificate for now and was not currently looking at whether to apply for a British certificate.

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Wizz Air Airbus 321 aircraft lands at the Chopin International Airport in Warsaw CEO Jozsef Varadi said the decision to do so reflected the size of the Luton operation, where it served 5 million passengers last year, making it the second largest airline there behind easyJet. "For the scale and size of the business, the operating model is not efficient or sustainable. If we want to grow, we need to base some capacity there," Varadi told Reuters, adding that space at Luton was getting tight and Wizz wanted to book an overnight stand before rivals did. Basing planes at Luton will give the airline more flexibility and allow it to open more routes, he added. The three new routes announced on Thursday will connect London Luton with Tel Aviv, Kosovo and Georgia. Varadi said the decision had nothing to do with Britain's decision to leave the European Union. He said Wizz was happy with its Hungarian operating certificate for now and was not currently looking at whether to apply for a British certificate. Such decisions would have to await clarity on future traffic rights between Britain and the EU. Wizz Air also announced two new routes from Frankfurt airport this week, meaning more low-cost competition for German carrier Lufthansa (LHAG.DE) at its home base after Ryanair (RYA.I) announced a deal to start flights this summer.

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Boosted by self-assessment tax receipts, January is typically a strong month for government finances. For the financial year-to-date, borrowing stands at 49.3bn , the lowest since the comparable period of 2008. Economists say strong tax receipts mean the government could undershoot the forecast deficit of 68bn for the current financial year. The forecast cheap tickets was made by the Office for Budget Responsibility (OBR) in November's Autumn Statement, although this estimate marked a sharp revision from the previous prediction of 55.5bn. Kamal Ahmed: Chancellor Hammonds 10bn of green shoots Philip Hammond presents his Budget on 8 March, and the chancellor will base his budget calculations on updated figures on growth and borrowing supplied by the OBR. In a statement, a Treasury spokesperson said: "We remain committed to returning the public finances to balance and building on our progress in reducing the deficit from 10% to 4% of GDP over the last six years." Click to see content: Feb_borrowing_comps Earlier this month, the EY Item Club economic think tank said that estimated borrowing for the 2016-17 financial year could be revised down to 65bn from the 68bn forecast made in the Autumn Statement. "The OBR is likely to deliver some rare good news to the chancellor by revising down its forecast for public sector net borrowing in the current fiscal year," the EY Item Club said in its Budget preview. "Unusually, tax revenues have been performing better than expected in recent months," it said. 'Better shape' Other forecasters are even more optimistic about the outlook for UK finances.

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