US-firm, Indigo Partners, has agreed to invest in budget Icelandic carrier, WOW air, after yesterday’s announcement that Icelandair was cancelling their own purchasing deal with the company.
Indigo Partners, who own Wizz Air, has over recent years expanded to Iceland, following a series of successful investments in the airline industry. Indigo Partners is based in Phoenix, Arizona, USA.
Over the last couple of years, WOW Air’s future has been dubious, with the company struggling to fund its operation, all the while dealing with a litany of customer complaints and growing distrust among its employees. These reasons had led CEO Skúli Mogensen to seek a purchasing agreement, a search that ultimately led to Icelandair’s proposal to purchase the company.
After pre-conditions were not met for the shareholders meeting, however, this agreement fell through, putting WOW Air into serious jeopardy. As reported yesterday, Skúli was already in talks with prospective foreign and domestic investors upon the deal’s cancellation.
And, it seems, the CEO now has something to finally celebrate, keeping a minority stake in the company upon Indigo Partner’s takeover.
One of the managing partners at Indigo, Bill Franke, released a company statement praising Skúli Mogensen for building WOW Air, and states that the company is looking forward to working with their new staff.
This is a follow on story from yesterday’s report, BREAKING NEWS: Icelandair Group Cancels Purchase of Wow Air. Tell us your thoughts on the latest news out of Iceland in the Facebook comments box below.