Posted on: 29 March 2019 by Kimberley Young
The Icelandic low-fare airline, WOW Air, has ceased operations and cancelled all flights.
The airline had been facing an uncertain future after talks with Icelandair Group collapsed on 25 March. The carriers had resumed talks on 21 March after previous negotiations around an acquisition of WOW Air by Icelandair ended without an agreement.
In the intervening period, the private equity firm, Indigo Partners, stepped in and in November it had agreed in principle to invest in WOW, however, Indigo Partners withdrew its offer in March.
After talks with Icelandair fell through, WOW Air issued a statement that “Most WOW Air bond holders and other creditors of WOW Air are in advanced discussions with the aim of reaching an agreement on a voluntary restructuring including an agreement of converting current debt into equity and fund the company towards a long-term sustainability,” however the airline ceased operations on 28 March.
Airport operator, Isavia, behind WOW Air’s main hub, Keflavik Airport, said: “Isavia regrets that WOW Air has ceased operations, as the company has transported a large number of passengers through Keflavik Airport for the past seven years and has been an important link in Keflavik Airport’s success and the development of tourism in Iceland.
“It is clear that the elimination of WOW Air will affect the operation of Keflavik Airport. Isavia will in the near future review what the effects may be.”
Passengers are being advised to check available flights with other airlines and some airlines are offering ‘rescue fares’.
WOW Air offered flights to 25 destinations across Europe and North America and is the latest airline to cease operations in a series of low-fare and regional carriers to close their doors, following Flybmi and Germania earlier this year.