I was in Iceland this past week and noticed all of the pretty purple planes at Keflavik Airport. Little did I know the growing turmoil regarding the future of WOW Airline and the acquisition by Iclelandair.
Well, now Iceland Monitor is reporting that: Icelandair Group’s acquisition of WOW air cancelled. The article states in relevant part that:
Icelandair group will not be purchasing WOW air and have cancelled a purchase agreement signed on November 5th. This was a mutual agreement by both airlines. Staff of WOW air have been asked to attend a staff meeting at 10 am this morning.
WOW has indicated that it intends to continue as an independent airline:
In an email from CEO of WOW air Skúli Mogensen to his staff this morning he says that his aim is to keep running WOW air as an independent airline and hopes to be able to bring good news to his staff soon.
I hope that WOW can continue – I’m not an economist, but I believe that low cost carriers help to keep competition high and prices down. However, WOW’s financial viability and future remains in doubt, especially in light of some of the problems that have been brought to light in the past week.