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WOW air gone - Icelandair buys 'em

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WOW air gone - Icelandair buys 'em

Old 11-05-2018, 05:17 PM
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Default WOW air gone - Icelandair buys 'em

https://www.flightglobal.com/news/ar...43zul9aBptD1eA

I read that the deal valued WoW at ~$18 million.

This is two financially troubled airlines getting together - this should go well.
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Old 11-06-2018, 01:00 AM
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Originally Posted by Andy View Post
https://www.flightglobal.com/news/ar...43zul9aBptD1eA

I read that the deal valued WoW at ~$18 million.

This is two financially troubled airlines getting together - this should go well.
WOWAir is not gone. It was acquired by IcelandAir and will continue to operate separately. At least that is the plan for now.
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Old 11-06-2018, 05:19 AM
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Originally Posted by NEDude View Post
WOWAir is not gone. It was acquired by IcelandAir and will continue to operate separately. At least that is the plan for now.
LOL! The plan. Just like the money WoW recently raised would keep them solvent for another 18 months so they could do an IPO, right?
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Old 11-12-2018, 05:39 AM
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Icelandair is not in any sort of financial trouble, quite the opposite.
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Old 11-12-2018, 08:14 AM
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Originally Posted by FLowpayFO View Post
Icelandair is not in any sort of financial trouble, quite the opposite.
WOW was in deep trouble. I suspect Iceland air will shut them down over time or merge the operations. The business model of selling tickets below your cost to produce the seat strangely was not profitable.
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Old 11-12-2018, 03:20 PM
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Originally Posted by sailingfun View Post
WOW was in deep trouble. I suspect Iceland air will shut them down over time or merge the operations. The business model of selling tickets below your cost to produce the seat strangely was not profitable.
Yes you are correct, WOW was in a desperate position sadly. I do agree that they will eventually merge the two operations but that’s up for debate. Icelandair purchased WOW only utilizing stock shares giving the owner of WOW 5.4% of Icelandair Groups shares. Plus Icelandair has over 5 years worth of cash reserves. How this is defined as Icelandair is in financial trouble is beyond me 🤷🏼*♂️
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Old 11-13-2018, 02:57 AM
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Originally Posted by sailingfun View Post
WOW was in deep trouble. I suspect Iceland air will shut them down over time or merge the operations. The business model of selling tickets below your cost to produce the seat strangely was not profitable.
They tried to make it up in volume
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Old 11-13-2018, 04:10 AM
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Originally Posted by dera View Post
They tried to make it up in volume
The Walmart model isn't possible in all industries.
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Old 11-13-2018, 02:56 PM
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Originally Posted by dera View Post
They tried to make it up in volume
Excellent Catch22 reference
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Old 11-29-2018, 06:06 AM
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Originally Posted by dera View Post
They tried to make it up in volume
There was an SNL skit years ago. It was an advertisement for a change bank. All they did was make change. They didn’t take a cut or charge anything...someone off camera asked how they make money....volume, they said. It was funny. If I knew how to attach YouTube clips, I’d search and see if I could find it.
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