Icelandair Group has made a purchase agreement to acquire every stake of WOW Air, its largest competitor.
In turn, current shareholders of WOW Air will receive a total of 5.4% of Icelandair Group’s stock.
The Icelandic flag-carrier says it will keep the low-cost airline’s brand identity.
Founder and CEO of WOW Air, Skúli Mogensen, is confident that this takeover will only strengthen WOW’s international competitiveness. “WOW air will become a part of the Icelandair Group as a standalone subsidiary“, the low-cost carrier told International Flight Network.
In the coming days, Icelandair Group will hold a meeting where its shareholders are able to vote on the acquisition.
Icelandair operates a total of 36 Boeing 737 MAX, 757 and 767-300 airplanes, while WOW Air’s fleet consists only of Airbus aircraft (17 A320/A321 and 3 A330-300).
WOW Air, founded in 2011, had struggled due to financial issues, despite constantly growing its market share. The airline recently announced it is suspending five destinations in its United States network.
Jakob Wert is an aviation journalist from Germany. He built up the website IFN.news and is the Editor-In-Chief of International Flight Network.