Icelandair to Buy Low-Cost Rival Wow Air for $18 Million

By Anna Breuer on 5 November 2018
  • Share
A Wow Air aircraft in San Francisco

A Wow Air aircraft in San Francisco

Icelandair Group announced plans to buy budget carrier Wow Air from its founder for $18 million in an all-share deal.

While Wow Air is part of a new breed of ultra low-cost carrier, Icelandair is a traditional full-service airline. Both are based in Iceland and together enjoy a 3.8% share of the transatlantic market.

Wow has launched over a dozen new routes to North America since 2015, and Icelandair often followed suit.

The two are expected to continue to operate under their respective brands, according to Bogi Nils Bogason, Icelandair Group’s interim CEO. Björgólfur Jóhannsson resigned as CEO in August after the company lowered projected profits.

“A new chapter now starts where WOW air gets an opportunity to grow and prosper with a strong backer like Icelandair Group,” said Wow founder Skúli Mogensen.

The transaction, which is subject to approval by Icelandair shareholders and regulatory approval, is expected to close in the first quarter of 2019.

(Photo: Accura Media Group)

Accura News

Read previous post:
United Airlines Takes Delivery of Its First Boeing 787-10 Dreamliner

United Airlines became the first airline in the United States to operate the new Boeing 787-10 Dreamliner when it accepted...