Icelandair Ends Discussions to Acquire Wow Air (Again)

A Wow Air jet at Keflavik Airport in Iceland

Icelandair, which just days ago announced it was in talks to acquire Wow Air, said late Sunday that it would not proceed with the acquisition.

“Icelandair Group has decided that its possible involvement in Wow air’s operations, as announced on 20 March 2019, will not materialize, the airline said. “Therefore, all discussions between the parties have ended.”

Following the collapse of talks with Icelandair, Wow said it had entered talks with its creditors and bondholders about a restructuring that would include a debt-to-equity swap. The low-cost Icelandic carrier said it will make an announcement on Monday.

The negotiations with Icelandair followed the news that a planned investment by Indigo Partners has fallen through.

Last November, Icelandair Group had announced plans to buy Wow Air from its founder for $18 million in an all-share deal. That deal fell apart within days of the announcement.

(Photo: Accura Media Group)