Airlines Indigo Partners to help WOW Air

According to aviation media, Indigo Partners has reached a preliminary agreement to purchase WOW Air. The deal comes just shortly after the Icelandair Group removed its interest to buy the carrier. WOW Air has struggled with its financial performance over the past months and years.

Indigo Partners, which is a private equity firm that holds stakes in JetSmart, Wizz Air, Volaris, Spirit Airlines and Frontier Airlines, has now reportedly agreed with WOW Air on buying the airline. In a statement, the company added that it would complete its diligence of WOW before the deal will be closed.

In the news release, Bill Franke, managing partner of Indigo Partners said: "We have a strategic vision for the airline, and look forward to working with its employees and agents to deliver that vision."

Indigo Partners is a major purchaser of Airbus aircraft. In November 2017, the group ordered 430 Airbus aircraft for US$ 49.5 billion at list prices. WOW Air currently operates an all-Airbus fleet as well.

WOW had to fight with a weak financial result lately. In addition, the carrier received complaints from customers about poor customer service. Higher fuel costs and other circumstances led the airline to experience escalated financial problems since September.

Recently, WOW Air transferred four Airbus aircraft to Spain for storage. Over the winter, this could see the carrier reducing its overall operational costs.

After Icelandair Group scrapped its plans to take over rival WOW Air, Nils Bogason, newly appointed CEO of the group, said: "This conclusion is certainly disappointing [...] We want to thank WOW Air's management for a good cooperation in the project during recent weeks. All our best wishes go out to the owners and staff of the WOW Air."

If the acquisition of Indigo Partners will be finalized remains unclear. It is expected that a statement about WOW Air´s future will be made in the coming weeks.

WOW Air was initially founded in November 2011 and commenced with scheduled passenger flights in May 2012. Its main hub is Keflavik International Airport. The low-cost carrier was installed in order to compete with Icelandair. WOW Air operates flights with one Airbus A320neo, 12 A321ceos, two A321neos and one A330-300. Two further A330s have been sent into storage, as well as two A320ceos.