WOW Air Buyout

by Angelique Platas

Nov 8, 2018

WOW Air in Iceland © Gestur Gislason | Dreamstime.com

Feature

In a pending deal, Icelandair agreed to purchase WOW air, its low-budget rival airline. The purchase still needs to be approved by Icelandic shareholders and is valued at about $18 million in shares. While the Icelandic rival would be under new ownership, the two airlines are expected to operate independently.

Founded in 2011, WOW air appealed to customers as a small airline offering affordable prices for flights between Europe and the United States. Additional charges for water, legroom, baggage and a slew of other services are tacked on to the price to fly.

While WOW air offers low-cost, no-frills service across the Atlantic onboard small, single-aisle aircraft, Icelandair is more of a traditional carrier. The full-service Icelandair operation appeals to business-class travelers expecting amenities and service, while WOW air operates more for the budget-friendly crowd willing to sacrifice comfort for cost.

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