WOW Air bankrupt, restarts as PLAY

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sterling
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WOW Air bankrupt, restarts as PLAY

Post by sterling » 05 Nov 2018, 16:35

I'm not really surprised about the situation of WOW Air and the Icelandair financial situation.
- Airports are increasing their tax and fees while both airlines are keeping the tariffs very low.
- You will need to move tons of passengers to make a some bucks.
- I've been couple of times on Icelandair flights (transit to US) and I noticed that only a very few passengers are purchasing food/drinks or tax-free stuff. My last Icelandair flight was to San Francisco (a B767) and while the flight was pretty decent filled (I suspect 90%), only a few tens of passengers did purchase something.

For Icelandair, the B757's are "old" and requires urgently a "refurbishement". Some of the seats had staines. Replacing some of the aircraft with "new" B767's isn't helping much.

Limited number of business travellers I noticed each time on those flights. I suspect most business travellers will prefer direct flights instead of stop-over in Reykjavik.

It will have some economic impact for Iceland's GDP if both airlines fail.

Let's what will happen with the other budget airline, Norwegian... early signs of troubles (such as stopping some US flights).


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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by luchtzak » 27 Nov 2018, 22:56

WOW Air to store 2 A330 and 2 A321

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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by TLspotting » 27 Nov 2018, 23:15

luchtzak wrote:
27 Nov 2018, 22:56
WOW Air to store 2 A330 and 2 A321
A320.

Breaking news : WOWair is restructuring.
IMG_20181127_225301.jpg
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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by luchtzak » 27 Nov 2018, 23:46

Thanks, I have more information on the matter and wrote a little article: https://www.aviation24.be/airlines/wow- ... cial-woes/

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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by luchtzak » 28 Nov 2018, 00:12

The news came out just after the low-cost airline won an award of low-cost carrier of the year (CAPA)

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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by convair » 28 Nov 2018, 01:06

Next aircraft registration: TF-END :(

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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by JustPlanes » 28 Nov 2018, 06:15

Bad time for this to happen before the slower winter... but when you want to grow too fast not to mention going into competition with an airline at your hub thats been around forever and does pretty much the same, things tend to go South sometimes....
Now as far as Icelandair taking over.... taking an airline thats in bad shape, does exactly the same to many of the same routes and operates a totally different fleet... I wonder what the plan is/was...

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Re: Icelandair Group to acquire low-cost airline WOW Air ?

Post by Magiktrix » 29 Nov 2018, 11:41

The acquisition of WOW by Icelandair is cancelled according Flightglobal.

https://www.flightglobal.com/news/artic ... er-454008/

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Re: Icelandair Group to acquire low-cost airline WOW Air ?

Post by TLspotting » 29 Nov 2018, 11:54

Press release :

The acquisition of Icelandair Group of Wow air, based on a purchase agreement signed on November 5th, has been cancelled. Both parties agree on this outcome.

Icelandair Group hf. issued a stock exchange release last Monday, November 26th, stating that the company estimated that it would be unlikely that all of the conditions in the share purchase agreement would be fulfilled by the shareholders’ meeting on November 30th. That situation remains unchanged.
Therefore, it is unlikely that the Board of Directors of Icelandair Group can recommend to the shareholders that they agree to the purchase agreement. Furthermore, the Board does not intend to submit to the shareholders’ meeting a proposal to postpone decision-making on the purchase agreement.

Due to this this situation, both parties agree to abandon the aforementioned purchase agreement.
Icelandair Group will hold its shareholders’ meeting on Friday, November 30, as previously announced. An authorisation proposal for the Board to increase the share capital of Icelandair Group is on the agenda of the shareholders’ meeting.

Bogi Nils Bogason, Interim President & CEO of Icelandair Group:
"The planned acquisition of Icelandair Group of Wow air will not go through. The Board of Directors and management of both companies have worked on this project in earnest. 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. "

Skúli Mogensen, CEO and Founder of Wow air:
"It was clear at the outset that it was an ambitious task to complete all the conditions of the share purchase agreement in this short period. We thank the Icelandair Group's management team for this challenging project, and also wish the management and staff of Icelandair Group all the best."
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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by Poiu » 29 Nov 2018, 17:12

convair wrote:
28 Nov 2018, 01:06
Next aircraft registration: TF-END :(
The question is when, not if unfortunately. Don’t think they ‘ll be around this time next week.
Another example of unsustainable growth.

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Re: Icelandair Group has acquired low-cost airline WOW Air

Post by TLspotting » 29 Nov 2018, 17:32

Poiu wrote:
29 Nov 2018, 17:12
convair wrote:
28 Nov 2018, 01:06
Next aircraft registration: TF-END :(
The question is when, not if unfortunately. Don’t think they ‘ll be around this time next week.
Another example of unsustainable growth.
I have the same thought as you but I didn't really dare to say it anywhere. But next week, on Friday, the airline goes bust for me. "Another one bites the dust" is a music I already listened at least 4 times within 3 months. Cobalt, Primera... WOW is the one on the way to bust. Trust me or not but I know the aviation for a long while and I can unfortunately detect when bad things are on the way, even in real life. WOW air has 1 week or 2 to live, after it is done
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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by TLspotting » 29 Nov 2018, 19:37

"Airport Associates at Keflavik Airport has fired 237 of its 500 employees. The company is the largest ground handling agent for WOW air. According to Flugblogg source, about 70% of Airport Associates business is linked on WOW air."

https://www.facebook.com/24272141290172 ... 834656649/
I'm Thibault Lapers, spotter in Belgium for now 3 years, but not yet across the world and a huuuuuge aviation geek ! Join me on Facebook & Twitter @TLspotting

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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by TLspotting » 29 Nov 2018, 23:27

BREAKING NEWS : WOW air and Indigo Partners found a preliminary agreement so Indigo Partners should invest into WOW air soon.
I'm Thibault Lapers, spotter in Belgium for now 3 years, but not yet across the world and a huuuuuge aviation geek ! Join me on Facebook & Twitter @TLspotting

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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by sn26567 » 30 Nov 2018, 00:28

TLspotting wrote:
29 Nov 2018, 23:27
BREAKING NEWS : WOW air and Indigo Partners found a preliminary agreement so Indigo Partners should invest into WOW air soon.
Full story: https://www.aviation24.be/airlines/wow- ... n-wow-air/
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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by sn26567 » 07 Dec 2018, 18:42

Indigo Partners (US) and WOW air (Iceland) initiated due diligence meetings as the initial steps to a potential Indigo investment after the signing a term sheet last week.
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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by Poiu » 13 Dec 2018, 13:19

Bankruptcy of WOW avoided for the moment, but instead of expanding fleet will be halved, only 10 A320-321 will remain.
In a very honest letter to all employees the CEO apologised for the unsustainable growth for which he is the one to blame and which almost killed the company.

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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by mad_fab » 13 Dec 2018, 15:21

More here :

https://www.routesonline.com/news/29/br ... tion+plans

https://www.businesstraveller.com/busin ... ut-routes/

So no more A330, they'll probably axe delhi in a few days/weeks. New schedule in janvuary.

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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by sn26567 » 13 Dec 2018, 18:54

In brief: WOW air is now restructuring and simplifying its operations to return to its roots as a profitable ULCC, while talks with Indigo Partners (US) progress. The fleet will be reduced from 20 to 11 aircraft, all single-aisle Airbus. WOW is in talks with lessors to return some of its aircraft including all A330s. Four A321s are being sold, improving liquidity by more than US10 million. After this restructuring, about 1,000 employees will remain with WOW.
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Re: Icelandair Group to acquire low-cost airline WOW air, or not?

Post by globetrotter » 14 Dec 2018, 16:11

mad_fab wrote:
13 Dec 2018, 15:21
More here :

https://www.routesonline.com/news/29/br ... tion+plans

https://www.businesstraveller.com/busin ... ut-routes/

So no more A330, they'll probably axe delhi in a few days/weeks. New schedule in janvuary.
DEL and US/Canada west coast routes bookings closed.

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