Indigo Partners Call Off WOW air Negotiations - Icelandair Renews Interest

Marco Green
Марта 24, 2019

WOW Air posted a pre-tax loss of nearly US$42 million (RM170 million) for the first nine months of 2018.

The decision to re-enter the talks with Iceland's main carrier came after Indigo Partners, owner of numerous low-priced carriers such as America's Frontier Airlines and Hungary's WizzAir, ended discussions with WOW.

The question of investment into Wow Air has come back to the initial name on a list - Icelandair.

The decision sees Wow Air turn its attention once again to a potential tie-up with Icelandair.

In a statement released this week, WOW air stated that Indigo Partners had canceled its proposed investment and discussions had ended.

The ultra-low-cost carrier began to look for investors last fall, and it looked like Icelandair was going to join forces with Wow, but that deal stalled.

Indigo Partners has canceled its investment, according to a statement on Wow air's website.

The collapsed talks are the latest setback for WOW Air, after months of searching for an investor.

Discussions between the two Iceland-based carriers are now ongoing, with a decision expected on Monday.

"The discussions will take place in cooperation with the Icelandic authorities".

Wow Air faces pressure from creditors and lessors and has already said it will reduce its fleet to 11 aircraft from twenty and cut 111 jobs.

WOW Air transports more than a third of those travelling to Iceland, and plays a large role in the country's important tourism sector.

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