WOW air

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WOW air
WOW air logo.svg
IATA ICAO Callsign
WW WOW WOW AIR
FoundedNovember 2011
Commenced operations31 May 2012
Ceased operations28 March 2019
HubsKeflavík International Airport
Fleet size10
Destinations27[1]
Key peopleSkúli Mogensen (CEO and founder)
Employees1,000[2]
Websitewowair.com

WOW air hf.[3] was an Icelandic ultra low-cost carrier founded in 2011 that operated services between Iceland, Europe, Asia, and North America.[4][1] The airline was headquartered in Reykjavík and based at Keflavík International Airport.[5] It ceased operations on 28 March 2019.[6]

History[edit]

Wow air headquarters in Reykjavík

Early developments[edit]

WOW air was founded in November 2011[7] and operated its inaugural flight in 2012.[8] WOW air was founded by entrepreneur Skúli Mogensen,[9] whose extensive business background is largely in technology and telecoms in Iceland, Europe, and North America. The sole owner of WOW air is Titan, an investment company owned by Mogensen,[10] who is the company CEO and sits on the five-person board of directors.[11]

In October 2012, WOW air acquired Iceland Express's operations and network.[12] Iceland Express operated to several destinations in Europe and North America using leased equipment. At the end of October 2012, following the acquisition of its operations, flights to Gatwick and Copenhagen saw frequency increases, services to Berlin, Kaunas (which was later dropped again), Salzburg and Warsaw had begun.

The airline carried over 400,000 passengers in 2013 and reached its one millionth passenger in December 2014.[8]

Since 2015, WOW air started expanding into North America, serving first the U.S., then Canada starting in May 2016.[13][14] Flights to Los Angeles and San Francisco began in June 2016 using two Airbus A330-300 planes leased from Air Europa.[15] WOW air's annual passenger capacity more than doubled in 2016 to over 1.6 million,[16] from approximately 740,000 in 2015.[17]

Criticism of pricing claims[edit]

In 2017, Wow Air was accused of spreading fake news through churnalism, after several media outlets reported as true Wow Air's allegedly false claim that it would fly passengers from London Stansted to New York for £99, which it said was below cost.[18]

Difficulties and takeover talks[edit]

On 5 November 2018, it was announced that Icelandair Group, the holding company of rival carrier Icelandair, would acquire the entire share capital of WOW air, subject to shareholder approval; the two airlines would continue to operate under separate names. Together, Icelandair and WOW air have a share of around 3.8% of the transatlantic market.[19][20] On 27 November 2018, WOW air announced that it had returned four aircraft to their lessors as a sale and lease back offer fell through and the company's financial situation worsened due to stricter demands by suppliers and contractors.[21][22] The four returned aircraft (two Airbus A320s and two A330s) are owned by the same company that was supposed to deliver four Airbus A330neos to WOW air.[23] On 29 November, Icelandair abandoned its takeover plans as the pre-conditions of the shareholders meeting were unlikely to be met.[24]

The same day, Indigo Partners, which has stakes in several ultra low-cost carriers, reached a preliminary agreement to buy WOW air.[25] Shortly after, WOW air announced major adjustments to its operations: the staff was reduced by 360 down to approx. 1,000, a further five aircraft (four Airbus A321s and the remaining A330) were to be phased out and the A330neos ordered would not be delivered.[2][26] WOW air thus cancelled its routes to Delhi, Los Angeles, San Francisco (which was seasonal) and Vancouver (which was to be introduced as a seasonal route in 2019).[27] In January 2019, WOW air disclosed that Indigo's investment would initially correspond to a 49% shareholding, with the option to increase at a later date.[28] However, by March 2019, Indigo Partners withdrew its investment proposal[29] and WOW air briefly but unsuccessfully resumed talks with Icelandair Group.[30] On 25 March 2019, the day after talks with Icelandair ceased, several WOW air flights were cancelled, fueling speculation as to the airline's fate.[31] The airline attributed the cancellations to a technical failure and its knock-on effects,[32] although two planes were immobilised after being repossessed by the lessor.[33]

On 26 March 2019, WOW air announced the conversion of bonds into equity and ongoing discussions with bondholders to secure the company's sustainability.[34] The following day, the company postponed all flights scheduled for 28 March "until documentation with all parties involved have been finalised."[35]

End of operations[edit]

On 28 March 2019, WOW air announced that it was ceasing operations.[6] All flights were cancelled and thousands of stranded passengers were advised to book flights with other airlines.[36][6] The founder of the company has talked of a possible resurrection of the airline.[citation needed]

Destinations[edit]

Before March 2019, WOW air had operated services to a total of 20 year round and 6 seasonal destinations[1] in Europe, the U.S., Canada, and the Middle East from its base at Keflavík International Airport.[37]

Fleet[edit]

Former WOW air Airbus A330-300

At the time of bankruptcy and cessation of operations on 28 March 2019, WOW air had an all-Airbus fleet consisting of the following aircraft:[38][39]

WOW Air fleet
Aircraft In Service Orders Passengers Notes
W Y Total
Airbus A321-200 5 8 192 200[39] 1 was wet-leased to Aruba Airlines.[23]
3 8 202 210[39]
Airbus A321neo 2 8 192 200[39]
Total 10

Previously operated[edit]

References[edit]

  1. ^ a b c wowair.us - Our destinations. Retrieved 9 February 2019
  2. ^ a b aerotelegraph.com - "Fleet nearly cut by half: WOW air does not want their A330s anymore" (German) 14 December 2018
  3. ^ "Company Overview of WOW air hf". Bloomberg. Retrieved 28 March 2019.
  4. ^ Zhang, Benjamin (2019-03-29). "22 famous airlines that have gone out of business". Business Insider. Retrieved 2019-03-30.
  5. ^ Get in touch - wowiceland.co.uk "WOW air Katrínartún 12, 105 Reykjavík"
  6. ^ a b c "End of Operation of WOW AIR". Icelandic Transport Authority. WOW AIR has ceased operation. All WOW AIR flights have been cancelled.
  7. ^ "How a tiny budget airline single-handedly turned Iceland into America's favorite vacation spot". Business Insider. Retrieved 20 December 2017.
  8. ^ a b "Our Story | WOW air". wowair.us. Retrieved 27 October 2017.
  9. ^ "How a tiny budget airline single-handedly turned Iceland into America's favorite vacation spot". Business Insider. Retrieved 18 January 2018.
  10. ^ Elliott, Alëx (20 September 2015). "WOW air Owner Investing Millions". Iceland Review. Retrieved 20 December 2017.
  11. ^ "Board of Directors | WOW air". wowair.co.uk. Retrieved 20 December 2017.
  12. ^ JNi.Media. "Iceland's WOW Air to Offer Tel Aviv – New York $149 RT Flights | The Jewish Press - JewishPress.com | JNi.Media | 19 Iyyar 5777 – 15 May 2017 | JewishPress.com". www.jewishpress.com. Retrieved 18 January 2018.
  13. ^ "WOW Air expands to Canada, rolls out $75 flights to Iceland". USA TODAY. Retrieved 18 January 2018.
  14. ^ "WOW Air CEO bullish on U.S. market". USA TODAY. Retrieved 18 January 2018.
  15. ^ "California - Summer 2016". WOW air. Retrieved 16 June 2016.
  16. ^ "You can now fly from the US to Europe for $70 — but one day it might be free". Business Insider. Retrieved 5 October 2017.
  17. ^ "Wow launches $99 one-way fares from SFO-Iceland, $199 to Europe". SFGate. Retrieved 5 October 2017.
  18. ^ Calder, Simon (9 November 2017). "The viral story about £99 flights to New York is fake news". The Independent. Retrieved 29 March 2019.
  19. ^ Kaminski-Morrow, David (5 November 2018). "Icelandair Group to take over budget rival Wow Air". Flightglobal.com. Retrieved 5 November 2018.
  20. ^ Jakob Wert (5 November 2018). "Icelandair acquires WOW Air". International Flight Network. Retrieved 5 November 2018.
  21. ^ "Wow Air returns four aircraft in face of cash crunch". Flightglobal. 27 November 2018.
  22. ^ independent.co.uk - Wow Air: Icelandic airline hands back four planes as cash crisis worsens 28 November 2018
  23. ^ a b c d ch-aviation.com - WOW air returns 4 aircraft, Icelandair takeover uncertain 28 November 2018
  24. ^ David Kaminski-Morrow (29 November 2018). "Icelandair Group scraps Wow Air takeover". Flightglobal.
  25. ^ Edward Russell (29 November 2018). "Indigo reaches tentative agreement to buy Wow Air". Flightglobal.
  26. ^ business-standard.com - Cheapest India-US flight to end as Wow Air set to exit Delhi route in Jan 14 December 2018
  27. ^ routesonline.com - WOW air 2019 network adjustment as of 14DEC18 14 December 2018
  28. ^ Moores, Victoria (16 January 2019). "Indigo to initially take 49% stake in Wow Air". atwonline.com.
  29. ^ "Indigo Partners has cancelled its proposed investment in Icelandic low-cost carrier Wow Air, prompting the airline to resume talks with Icelandair Group". FlightGlobal. Reed Business Information Limited. 21 March 2019. Retrieved 22 March 2019.
  30. ^ Kaminski-Morrow, David (24 March 2019). "Icelandair Group pulls out of Wow Air discussions". FlightGlobal.
  31. ^ Calder, Simon (25 March 2019). "Wow Air cancels flights amid fears of possible collapse". The Independent.
  32. ^ Elliott, Alexander (25 March 2019). "WOW air fate expected today". RÚV. Retrieved 26 March 2019.
  33. ^ Wert, Jakob (25 March 2019). "WOW Air cancels several flights following aircraft repossessions". International Flight Network.
  34. ^ "Media". wowair.is. 26 March 2019. Retrieved 27 March 2019. Bondholders have formally approved to convert their bonds into equity and formal discussions with investors have commenced to fund the company. This is an important milestone in financially restructuring the company and secure the long-term sustainability of WOW air.
  35. ^ "Wow Air postpones flights ahead of new investment deal". Flight Dashboard. Flightglobal.com. 28 March 2019.
  36. ^ "Wow Air failure: 'They gave us pizza - then cancelled our flight'". BBC News. 28 March 2019. Retrieved 28 March 2019.
  37. ^ wowair.co.uk - Our destinations retrieved 9 February 2019
  38. ^ "Icelandic Aircraft Register search results for aircraft operated by WOW air". Icelandic Transport Authority. Retrieved 21 June 2017.
  39. ^ a b c d "WOW aircraft". WOW Air. Retrieved 9 February 2019.

External links[edit]

Media related to WOW Air at Wikimedia Commons