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. :rolleyes:

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?

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.

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 🤷🏼*♂️

They tried to make it up in volume :D

The Walmart model isn't possible in all industries.

Excellent Catch22 reference

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.