Indigo Partners and WOW air have agreed have agreed in principle for Indigo to invest in WOW, on the same day that Icelandair Group decided to cancel its proposed investment in WOW air. Terms of the transaction were not disclosed.
Following successful completion of due diligence, the parties would work to close as soon as practicable. WOW’s CEO and primary shareholder, Skuli Mogensen, would remain a principal investor in WOW upon completion of the transaction.
“The demand for low-cost air service continues to expand rapidly worldwide, and with Indigo as a partner, we hope to take full advantage of this highly attractive market segment,” said Mr. Mogensen in a statement released today. “I am excited to work with Indigo and I am convinced it is the best long-term move for our people and passengers.”
“Skuli and WOW’s management and employees have done a remarkable job in creating a well-regarded, successful ULCC brand,” said Bill Franke, Managing Partner of Indigo Partners. “We have a strategic vision for the airline, and look forward to working with its employees and agents to deliver that vision.”
WOW is advised in this transaction by Plane View Partners LLC, the U.S. air transportation advisory firm.
Indigo Partners was co-founded by Bill Franke and has set up a number of ultra-low-cost airlines around the world. The company is the main investor in Tiger Airways, based in Singapore, and in Spirit Airlines, located in Florida. It is also a major investor in Wizz Air Holdings (Hungary), Frontier Airlines (U.S.), Volaris Airlines (Mexico) and JetSMART (Chile). It is unrelated to Indian LCC IndiGo.
Indigo’s headquarters are in the U.S. city of Phoenix, Arizona. At the November 2017 Dubai Air Show, Indigo Partners signed an order for 430 Airbus A320neo family aircraft to be placed among its various airlines.