newstodate.aero
Nov 29, 2018 (newstodate): Close, but no cigar: the Icelandair Group's planned planned acquisition of the country's low-cost carrier WOW Air has been cancelled.
In a release out today, the Icelandair Group says 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, the message says.
-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, the release reads.
-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, Skuli Mogensen, CEO and Founder of Wow Air adds.
While Icelandair will certainly survive this blow, the situation may be very much different for WOW Air.
WOW Air is in deep financial woes to the extent that doubts are if the carrier can actually even pay its employees at normal deadlines.
WOW Air has over-extended its means to support a dynamic growth in aircraft fleet and network and suffered a devastating drop in equity after a weak performance in 2017, driving an acute need for influx of fresh capital.
In a release out today, the Icelandair Group says 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, the message says.
-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, the release reads.
-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, Skuli Mogensen, CEO and Founder of Wow Air adds.
While Icelandair will certainly survive this blow, the situation may be very much different for WOW Air.
WOW Air is in deep financial woes to the extent that doubts are if the carrier can actually even pay its employees at normal deadlines.
WOW Air has over-extended its means to support a dynamic growth in aircraft fleet and network and suffered a devastating drop in equity after a weak performance in 2017, driving an acute need for influx of fresh capital.