Icelandair drops WOW Air takeover talks

WOW Air has recently removed the Airbus A320-200 from its operations. Photo: © TJDarmstadt

Icelandair Group has confirmed that it has dropped talks regarding an investment in competing low-cost carrier WOW Air for the second time.

The two airlines had just started re-negotiating a possible takeover of WOW Air earlier this week, after talks between WOW and investment company Indigo Partners had failed.

Today, Icelandair confirmed that it is no longer interested in the struggling low-cost carrier.

Icelandair Group has decided that its possible involvement in WOW air’s operations, as announced on 20 March 2019, will not materialize. Therefore, all discussions between the parties have ended.Icelandair Group

In November last year, Icelandair announced it would acquire all shares in WOW Air. This plan was quickly cancelled again, shortly after WOW had entered a restructuring process. Instead, Indigo Partners LLC, a company that holds majority stakes in several low-cost carriers, stepped in to possibly save WOW Air’s flight operations. Negotiations between Indigo and WOW were cancelled on Thursday evening.

Since October last year, WOW Air has consistently downsized its operations. The airline dropped several destinations, and continues to cancel even more, entered a restructuring process, laid off more than 100 employees, and significantly reduced its fleet.

At the moment, WOW Air operates eleven aircraft, consisting of one Airbus A320neo, eight A321 and two A321neo. In comparison, before the airline came into turbulence, it was operating 17 Airbus A320 family aircraft, including A320, A320neo, A321 and A321neo, as well as three Airbus A330-300. During ITB 2019 in Berlin, WOW Air confirmed to International Flight Network that it has cancelled its order for four new Airbus A330-900neo, which were leased from CIT Aerospace and due to be delivered this year.