newstodate.aero
Nov 06, 2018 (newstodate): Airline consolidation took at new step forward on Iceland where the country's two largest carriers have decided to team up.
The Icelandair Group is thus to acquire WOW Air, the country's low-cost carrier, founded in 2011, that has built a growing network of intercontinental routes in head-on competition to Icelandair.
So far, the relation between the two airlines has hardly been marked by love at first sight..
The consolidation is supposedly a marriage of convenience as Icelandair has been forced to open negotiations with shareholders to obtain a temporary waiver of covenants throughout November 2018 due to a weak performance in summer 2018, while WOW Air recently failed in efforts to attract much-needed fresh capital through an emission of new shares that failed to sell in the market.
According to the sparse information available at the moment, the two brands will continue separately after the merger, with Icelandair continuing its efforts in the business legacy market, and WOW Air focusing on the low-cost and leisure market.
After the merger, and pending government approval, the combined fleet of the new entity will comprise WOW Air's two A320ceo, one A320neo, 12 A321ceo, two A321neo, and three A330-300s plus delivery of four A330-900, as well as Icelandair's three Boeing 737-8, 25 Boeing 757-200, two Boeing 757-300, two Boeing 757-200F, and four Boeing 767-300ER aircraft.
The Icelandair Group is thus to acquire WOW Air, the country's low-cost carrier, founded in 2011, that has built a growing network of intercontinental routes in head-on competition to Icelandair.
So far, the relation between the two airlines has hardly been marked by love at first sight..
The consolidation is supposedly a marriage of convenience as Icelandair has been forced to open negotiations with shareholders to obtain a temporary waiver of covenants throughout November 2018 due to a weak performance in summer 2018, while WOW Air recently failed in efforts to attract much-needed fresh capital through an emission of new shares that failed to sell in the market.
According to the sparse information available at the moment, the two brands will continue separately after the merger, with Icelandair continuing its efforts in the business legacy market, and WOW Air focusing on the low-cost and leisure market.
After the merger, and pending government approval, the combined fleet of the new entity will comprise WOW Air's two A320ceo, one A320neo, 12 A321ceo, two A321neo, and three A330-300s plus delivery of four A330-900, as well as Icelandair's three Boeing 737-8, 25 Boeing 757-200, two Boeing 757-300, two Boeing 757-200F, and four Boeing 767-300ER aircraft.