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Marshall

WOW coming to YVR

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3 hours ago, dagger said:

The takeover has fallen through. Interesting to see if WOW survives now.

indeed.

Icelandair scraps plan to buy struggling rival WOW Air

  • Icelandair had said it intended to acquire its younger Icelandic rival WOW Air earlier this month.
  • Icelandair said Thursday that it was 'unlikely' that the conditions in the share purchase agreement would be met by Nov. 30, the shareholder meeting.
  • The issue calls into question the future of WOW Air, a budget carrier that expanded rapidly over the past several years.
Published 1 Hour Ago Updated 31 Mins Ago CNBC.com
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
105085304-19388554_1230449687065634_4213
Source: WOW Airlines

Icelandair Group on Thursday scrapped a plan to acquire its Icelandic rival WOW Air, calling into question the next steps for the struggling budget carrier.

 

WOW Air's flights first took off in 2012 and it has expanded rapidly, adding trans-Atlantic service from a host of U.S. cities. The airline is a no-frills budget carrier, that offers low airfares, some below $100 one way, and charges passengers for everything else, such as seat assignments, carry-on baggage and food and beverages.

But WOW Air said it has faced escalating financial problems since its bond issuance in September, including higher fuel costs.

Aircraft lessors and the company's creditors have "demanded stricter payment terms than before, putting further pressure on the company's cash flow," WOW air said in a statement on Tuesday.

The airline reduced its fleet by four planes earlier this week.

It is not immediately clear what WOW Air's next steps are.

The airline, which expanded rapidly and helped fuel a tourism boom to Iceland, has grappled with other problems as well, including accusations of poor customer service.

"We have to do better," WOW's CEO Skuli Mogensen told CNBC in an interview in June in Reykjavik. "It's obviously in our interest to fix it." He said such problems as canceled flights, delays and other problems cost the airline in lost passengers and the money they have to pay to compensate them.

Mogensen was not immediately available for comment on the scrapped Icelandair deal but said in a statement that 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."

WOW's problems come amid struggles of several other airlines. Budget carrier Primera Air abruptly ceased operations in October, leaving passengers stranded. A year earlier, the collapsed U.K. carrier Monarch Airlines stranded more than 100,000 travelers abroad.

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Circling the drain? 

Wow Air returns four aircraft in face of cash crunch


Iceland's Wow Air has returned four aircraft to lessors as its financial position continues to erode.

The low-cost carrier returned two Airbus A320 family aircraft and two Airbus A330-300 aircraft to their respective lessors, Wow says in a statement on 27 November. It calls the move part of a "necessary restructuring".

Wow operates 17 A320 family - A320, A320neo, A321 and A321neo - aircraft and three A330-300s, Flight Fleets Analyzer shows.

The airline's fleet reduction follows a rapid deterioration of Wow's financial position since a 24 September bond issue, the airline says in a separate statement on the same day.

Wow is actively seeking long-term funding to continue operations, a move that it says is a "necessity for the business".

Northern European carrier Primera Air collapsed in October after failing to secure working capital to keep its aircraft flying. The low-cost carrier had begun transatlantic flights to Boston, New York, Toronto and Washington earlier this year, a market where it competed indirectly with Wow.

Wow cites the collapse of Primera, as well as negative publicity about its financial health and rising fuel prices, for its weakened working capital position since the €60 million ($67.7 million) bond transaction in September.

"[Wow] had significant bad publicity about the financial health of the company, which ended up having a more negative impact on the company's sales and credit position than anticipated," Wow says. "As a result, the Q4 results are materially worse than originally anticipated."

Icelandair Group announced plans to acquire Wow in early November, in a move seen as a way to shore up the two carriers that have engaged in a head-to-head battle on transatlantic routes in recent months. However, the airline needs both shareholder and regulatory approval for the deal.

Icelandair shareholders are scheduled to meet on 30 November to discuss and vote on the Wow deal.

https://www.flightglobal.com/news/articles/wow-air-returns-four-aircraft-in-face-of-cash-crunch-453954/

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Still kicking:

Quote

Indigo Partners and WOW air Reach Preliminary Agreement



PHOENIX, Nov. 29, 2018 /CNW/ -- Indigo Partners LLC ("Indigo"), and WOW air ("WOW"), the Icelandic airline based in Reykjavik, have agreed in principle for Indigo to invest in WOW. 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.

WOW air is an ultra-low-cost carrier currently serving 25 destinations across Europe and North America.

 

"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. "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.

About Indigo Partners
Indigo Partners is a private equity firm established by W. A. Franke in 2003 to pursue acquisitions and strategic investments in the air transportation and related industries. The firm was a lead investor in Tiger Airways based in Singapore and Spirit Airlines based in Ft. Lauderdale, Florida, and maintains lead investments in Wizz Air Holdings, Plc, a ULCC with multiple bases in Central and Eastern Europe; Frontier Airlines, a ULCC based in Denver; Volaris Airlines, a ULCC based in Mexico City; and JetSMART, a ULCC based in Chile. Indigo is headquartered in Phoenix, Arizona.

About WOW air
WOW air is a happy low-fare, long-haul airline based in Iceland with a young, low emission fleet. The airline was founded in November 2011 and currently serves 25 destinations across Europe and North America. WOW air is committed to providing the cheapest flights to and from Iceland and across the Atlantic while providing a memorable service all the way. For more information, please visit https://wowair.us/about-us.

 

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How to make a little money in the airline business... Start with a lot of money

 

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WOW air announces $99.99 transatlantic routes from Montreal Français


News provided by

WOW air

Mar 05, 2019, 06:00 ET

  •  

Montrealers can now take advantage of early special fares for spring travel to Europe

MONTREAL, March 5, 2019 /CNW/ - WOW air, Iceland's only low cost airline, is offering travellers departing from Montreal's YUL airport fares as low as CAD $99.99* to a number of European destinations, for travel between March and May 2019.

Montrealers can now book affordable flights to Reykjavik, Brussels, Berlin, Dublin and London in time for major events and celebrations taking place in spring 2019.

For lovers of books, fashion, furniture, architecture, and lovers in general, Iceland may be the perfect destination, as the world's northernmost capital city of Reykjavik prepares to host the Reykjavik International Literary Festival (24-27 April), Design March (28-31 March), and the Rainbow Reykjavik LGBT Winter Pride Festival (March 7-10).

While chocolate aficionados may choose Brussels as their ideal destination for the Easter holiday, gaming enthusiasts can head to Berlin for the Gamesweekberlin event (8-14 April), and stop by the Spring Festival funfair at Kurt-Schumacher-Damm (29 March - 22 April) which will be running for weeks.

Dublin is another wildly popular destination all throughout spring, with numerous travellers flocking to the Emerald Isle to attend St. Patrick's Festival (14-18 March) or the Dublin Dance Festival (1-19 May).

*Based on lowest one-way fare booked on wowair.ca for travel between March and May 2019. Includes all taxes, fees and carrier charges. Restrictions and baggage fees apply.   Available on select flights, only when booking round trip flights. Subject to availability. Lowest advertised fare is exclusive to MyWOW members

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Icelandair Group pulls out of Wow Air discussions

  • 24 March, 2019
  • SOURCE: Flight Dashboard
  • BY: David Kaminski-Morrow
  • London

Icelandic carrier Wow Air’s future appears increasingly uncertain after Icelandair Group ended newly-initiated discussions with the budget airline.

Wow Air had entered talks with Icelandair Group on 21 March after previous potential suitor Indigo Partners pulled out of investment negotiations.

But Icelandair Group says a possible involvement in Wow’s operations “will not materialise”.

 

“All discussions between the parties have ended,” it adds, without elaborating on the reasons.

The talks had originally been due to continue until 25 March.

Icelandair Group’s renewed interest in Wow marked the second time the two sides had embarked on tie-up discussions.

It had previously disclosed, in November last year, that it intended to take over Wow, which was suffering heavy losses.

But pre-conditions for a shareholders’ meeting on the acquisition were not met, prompting Icelandair Group to abandon the merger plan.

Wow Air has pared back its services to an Airbus A320-family operation, having previously expanded with A330s.

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The cheaper the flights the shorter the run...

 

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You can fly from North America to Europe for $99 and that is sustainable....

If it sounds to good to be true, then it probably isn’t.

Flair should pay close attention.

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Wow's financial woes have been apparent for many months but really came to a head when a proposed deal with Iceland Air collapsed last week.  Anyone who booked with them in the last few weeks was taking a huge gamble but as we all know money talks and airlines keep promoting the almost god given right to cheap air travel to the masses.

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21 hours ago, blues deville said:

Affirm. 

I wonder if AC will be looking for more. The purchase price for the last four struck me as ridiculously low

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1 hour ago, dagger said:

I wonder if AC will be looking for more. The purchase price for the last four struck me as ridiculously low

I think it’s possible. Might even be lower priced now!

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