Airlines WOW Air ceases operations
Iceland´s low-cost carrier WOW Air has announced, that the airline had to cease operations
The next European airline has filed for insolvency. After Germania and flybmi, Icelandic carrier WOW Air is now the next carrier that had to cease operations due to financial problems. WOW Air struggled with financial difficulties since the end of 2018.
Back then the airline announced, that it was in negotiations with Icelandair over a possible acquisition. But in the end, the deal never came into effect. Nearly a month later, WOW Air published a restructuring plan, which saw the half of the fleet being returned to lessors. Moreover, WOW Air planned to cut additional routes.
Then, Indigo Partners was favourite to acquire the low-cost carrier. But again, a deal never happened, leaving WOW Air with huge debts.
Last week, bondholders agreed on converting WOW Air´s debts into equity. However, this was not enough for the carrier to operate sustainably. WOW Air ceased operations on March 28, 2019.
Various airlines offered special discount prices for stranded WOW Air passengers. Icelandair, easyJet and Norwegian were airlines that helped passengers getting back home.
WOW Air was founded back in 2011 as an ultra-low-cost carrier. The main intention for CEO Skuli Mogensen to start a low-cost airline in Iceland was to get a piece of the passengers that connected via Reykjavik through the United States with Icelandair. In May 2012, the first passenger flight took off from Iceland.
Before ceasing operations, WOW Air flew to 27 destinations and had a workforce of around 1,000 employees. The airline operated with an all-Airbus fleet consisting of three A320s, ten A321 and three A330s. WOW Air took delivery of an A321neo and A320neo last year. Also, the carrier was about to take delivery of a first state-of-the-art Airbus A330neo.
Source © wow-air.de