Tag Archives: Wow Air

Wow Air launches its first route to India

Wow Air Airbus A330-343 TF-GAY (msn 1098) LAX (Michael B. Ing). Image: 935285.

Wow Air (Keflavik), despite its financial concerns, today (December 7) launched its new route to Delhi, India.

The new route will operate three a week  using its only 345-seat Airbus A330-300 (TF-GAY).

Top Copyright Photo (all others by the airline): Wow Air Airbus A330-343 TF-GAY (msn 1098) LAX (Michael B. Ing). Image: 935285.

Wow Air aircraft slide show:

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Indigo Partners and Wow Air discussions progressing

Wow Air Airbus A330-343 TF-GAY (msn 1098)  CDG (Jacques Guillem). Image: 944647.

Indigo Partners has issued this update:

Indigo Partners and Wow Air initiated diligence meetings this week in Reykjavik as the initial steps to a potential Indigo investment after the signing of a term sheet last week.  A team from Indigo Partners spent the last two days with Wow Air management to review the business and opportunities of the airline going forward.

The overall process is progressing and both parties are working to finalize the investment.

Issues remaining include Wow’s planned network development, vendor contracts including aircraft leases and certain waivers from Wow’s bondholders. 

“We are very pleased with the visit from Indigo Partners and it’s clear that we can learn a lot from Bill Franke and his team on how to build a successful low cost airline.  I don’t think we can find a better and more experienced partner to bring WOW air to the next level,” said Skuli Mogensen, CEO and founder of WOW air.

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.

Top Copyright Photo: Wow Air Airbus A330-343 TF-GAY (msn 1098) CDG (Jacques Guillem). Image: 944647.

Wow Air aircraft slide show:

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Icelandair Group’s acquisition of Wow air is cancelled

Icelandair Group issued issued this statement:

The acquisition of Icelandair Group of Wow air, based on a purchase agreement signed on November 5t, 2018 has been cancelled. Both parties agree on this outcome.

Icelandair Group hf. issued a stock exchange release last Monday, November 26, 2018 stating that the company estimated that it would be unlikely that all of the conditions in the share purchase agreement would be fulfilled by the shareholders’ meeting on November 30, 2018. That situation remains unchanged.

Therefore, it is unlikely that the Board of Directors of Icelandair Group can recommend to the shareholders that they agree to the purchase agreement. Furthermore, the Board does not intend to submit to the shareholders’ meeting a proposal to postpone decision-making on the purchase agreement.

Due to this this situation, both parties agree to abandon the aforementioned purchase agreement.

Icelandair Group will hold its shareholders’ meeting on Friday, November 30, as previously announced. An authorisation proposal for the Board to increase the share capital of Icelandair Group is on the agenda of the shareholders’ meeting.

Bogi Nils Bogason, Interim President & CEO of Icelandair Group:

“The planned acquisition of Icelandair Group of Wow air will not go through. The Board of Directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing. We want to thank WOW air‘s management for a good cooperation in the project during recent weeks . All our best wishes go out to the owners and staff of the Wow air. ”

Skúli Mogensen, CEO and Founder of Wow air:

“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 Air returns four Airbus aircraft to its lessors as it restructures

Wow Air Airbus A320-232 TF-BRO (msn 4305)  BWI (Tony Storck). Image: 932689.

Wow Air has issued a regulatory statement that it is downsizing its fleet by four aircraft – one Airbus A320 (TF-BRO), one A321 (TF-DAD) and two A330-300s (TF-WOW and TF-LUV) “as a part of necessary restructuring of the airline and to ensure maximum utility of its remaining fleet.”

 

The aircraft are being put into storage in Europe.

Top Copyright Photo (all others by the airline): Wow Air Airbus A320-232 TF-BRO (msn 4305) BWI (Tony Storck). Image: 932689.

Wow Air aircraft slide show:

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Icelandair Group acquires Wow Air

Wow Air Airbus A330-343 EC-MIN (msn 1607) LAX (Ron Monroe). Image: 944276.

Icelandair Group has made this announcement:

Icelandair Group has entered into a share purchase agreement to purchase all shares in the airline WOW air.

The acquisition is subject to, approval by Icelandair Group‘s shareholders, the approval of the Icelandic competition authorities and a due diligence. As consideration for the shares, the shareholders of WOW air will, subject to conditions, receive a total of 272.341.867 shares or the equivalent of 5.4% of Icelandair Group‘s shares after the transaction. Thereof, 178.066.520 shares or 3.5% of the shares as consideration for the sold shares. The consideration can increase to 4.8% or decrease to 0.0% in accordance with certain conditions set forth in the share purchase agreement.  94.275.347 shares or 1.8% of the shares will be paid due to conversion of a subordinated loan into equity. All of sellers’ shares in Icelandair Group will be subject to restrictive covenants for 6 months and half of the shares will be subject to restrictive covenants to further six months.

The companies will continue to operate under separate brands. Their combined market share on the transatlantic market is around 3.8%. The acquisition creates opportunity for both companies to become even better prepared to provide international carriers with strong competition in the international airline market.

Bogi Nils Bogason, Interim President & CEO, Icelandair Group: „WOW air has in recent years built a strong brand and enjoyed great success in the company‘s markets to and from Iceland and across the Atlantic.. There are many opportunities for synergies with the two companies but they will continue to operate under their own brands and operating approvals. The tourism industry is one of the cornerstones of the Icelandic economy and it is important that flights to and from Iceland will remain frequent.“

Skúli Mogensen, CEO and founder of WOW air: „I am very proud of the success and development that we at WOW Air have enjoyed in the past few years and I am thankful for the response we have received since our very first flight. We have created a strong team that has reached remarkable success and has been a pioneer in low cost flights across the North-Atlantic. A new chapter now starts where WOW air gets an opportunity to grow and prosper with a strong backer like Icelandair Group that will strengthen the foundations of the company and strengthen its international competitiveness even further.“

In the upcoming days, Icelandair Group‘s will convene a shareholders‘ meeting where Icelandair Group‘s shareholders will cast their vote on the acquisition. A shareholders’ meeting shall be convened with at least three weeks‘ notice.

Top Copyright Photo (all others by the airlines): Wow Air Airbus A330-343 EC-MIN (msn 1607) LAX (Ron Monroe). Image: 944276.

Wow Air aircraft slide show:

Icelandair route map:

Wow Air route map:

Wow Air chooses Vancouver as its next Canadian destination

First A321neo, delivered on June 21, 2017

Wow Air is expanding its Canadian services by opening a new route in Vancouver.

Starting in June 2019, there will be six weekly flights out of Vancouver International Airport (YVR).

Vancouver’s scenic skyline and seawall (CNW Group/WOW air)

The new route will be operated with Airbus A321neo aircraft.

Top Copyright Photo (all others by Wow Air): Wow Air Airbus A321-253N WL TF-SKY (msn 7694) YYZ (TMK Photography). Image: 938921.

Wow Air aircraft slide show:

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Wow Air to drop three U.S. cities

Wow Air Airbus A321-211 WL TF-PRO (msn 7680) AMS (Ton Jochems). Image: 943953.

Wow Air is adjusting its U.S. routes. Due to disappointing results, the Icelandic airline will drop St. Louis on January 7, 2019.

The company will also not renew flights to Cleveland and Cincinnati next summer when it ends flights on October 27.

Top Copyright Photo (all others by Wow Air): Wow Air Airbus A321-211 WL TF-PRO (msn 7680) AMS (Ton Jochems). Image: 943953.

Wow Air aircraft slide show:

Route Map: