Icelandair Group set to buy WOW Air
It’s been no lie that WOW Air has been struggling financially of late and also load factor wise. The airline recently canceled a number of flights to the United States and is also awaiting the delivery of its first A330neo which has been pushed back to next year. The big news is that the Icelandair group has now entered into a purchase agreement to purchase all the shares in the airline known as WOW Air.
The acquisition is subject to approval by the shareholders of the Icelandair Group and various other approvals. Once the transaction is complete WOW Air shareholders will receive 5.4% of Iceladairs group shares in return.
However, WOW Air won’t completely disappear. They will continue to operate under separate brands, but the move from the Icelandair group means that the carriers can merge their market share which is at around 3.8% on transatlantic services and further grow that.
The president of the Icelandair group said “WOW air has in recent years built a strong brand and enjoyed great success in the company‘s markets to and from Iceland and across the Atlantic. There are many opportunities for synergies with the two companies but they will continue to operate under their own brands and operating approvals. The tourism industry is one of the cornerstones of the Icelandic economy and it is important that flights to and from Iceland will remain frequent.“
Meanwhile, the CEO and founder of WOW Air said “I am very proud of the success and development that we at WOW Air have enjoyed in the past few years and I am thankful for the response we have received since our very first flight. We have created a strong team that has reached remarkable success and has been a pioneer in low-cost flights across the North-Atlantic. A new chapter now starts where WOW air gets an opportunity to grow and prosper with a strong backer like Icelandair Group that will strengthen the foundations of the company and strengthen its international competitiveness even further.“