Wow airlines
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Wow airlines
From Blue Swan:
WOW air to suspend five US routes
WOW air made the following changes to Reykjavik–US service, according to a 16-Oct-2018 GDS inventory and timetable display:
Cincinnati: Four times weekly service to be discontinued from 26-Oct-2018;
Cleveland: Three times weekly service to be discontinued from 25-Oct-2018;
Dallas/Fort Worth: Three times weekly service to be discontinued from 26-Oct-2018;
New York JFK: Daily service to be discontinued from 26-Oct-2018;
St Louis: Three times weekly service to be discontinued from 06-Jan-2019.
For all routes, WOW air does not plan to resume seasonal service in 2019.
WOW air to suspend five US routes
WOW air made the following changes to Reykjavik–US service, according to a 16-Oct-2018 GDS inventory and timetable display:
Cincinnati: Four times weekly service to be discontinued from 26-Oct-2018;
Cleveland: Three times weekly service to be discontinued from 25-Oct-2018;
Dallas/Fort Worth: Three times weekly service to be discontinued from 26-Oct-2018;
New York JFK: Daily service to be discontinued from 26-Oct-2018;
St Louis: Three times weekly service to be discontinued from 06-Jan-2019.
For all routes, WOW air does not plan to resume seasonal service in 2019.
So WOW Air shareholders will get 5.4 % of the value of Icelandair in return for selling their shares. Not zero but says to me that WOW Air was deemed a near worthless company. I'm guessing WOW Air management knew their company was near bankruptcy and a deal was done to avoid the heavily-tourism-dependent Icelandic economy having a major shock from loss of confidence and decline in visitor numbers
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When I read the headline in the news I thought, “probably a smart move or they could both end up struggle through winter, competition and oil likely climbing over coming 4-6 month”.... As already stated above, the price indicates the sale of a company with a tough future. Good for all in the two companies if this makes the resulting company stronger and more viable.
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Aviation history shows that Icelandic airlines tend to have an almost uncanny knack of reinventing themselves. Shame for the investors that lose their shirts but hey ho it would appear to be a national past time up there.
KEF is ideally placed as a hub and I would expect it to continue as such (although the infrastructure is getting tight). Whether it makes sense to operate two brands along side each other is questionable. You want to maximise the number of available connections which points to there being a single operator, although there is no reason why there can't be a WOW style low cost section in each aircraft. Then again Qantas & Jetstar operate as separate brands and I believe codeshare. Makes life confusing for the punter though.
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As we spak, 4 aircraft are being flown to SNN and LDE for storage, 2x a330 and 2x a320. News sources reporting that the deal with Icelandair could be in doubt : https://grapevine.is/news/2018/11/26...y-in-jeopardy/
Also an email from Wow air to shareholders can be viewed here : https://s3-eu-west-1.amazonaws.com/w...ondholders.pdf
Also an email from Wow air to shareholders can be viewed here : https://s3-eu-west-1.amazonaws.com/w...ondholders.pdf
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I hate to see any airline struggling because there are careers, livelihoods and travel plans involved but its going to be challenging for WOW air over the next few months...
- A fifth of the fleet returned to lessors - maybe not a bad thing given the cutbacks it is making
- Several US and European routes dropped or frequencies reduced - Europe-US is the airline's primary business proposition
- Doubt an uncertainty spread by the failed acquisition and statements by the airline about its financial position
- Winter slow period on the north Atlantic coming up
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Yep, it doesn't give the public confidence booking with them and it all spirals out of control from there. Knowing what I do about their situation I certainly wouldn't go and book a ticket with them now.
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Those aircraft were taken off Wow by the lessors, they had gotten word that the ICE deal was off..that’s why SIS positioned directly from Milan to shannon without operating the return to KEF
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Flagging how the health of its airlines could affect Iceland’s economy, the central bank said this month a 14 percent fall in the value of the krona against the dollar since September was “due to some extent to temporary uncertainty about domestic airline WOW air’s financing.”
https://in.reuters.com/article/us-wo...-idINKCN1NY1CQ
This is getting serious - Wow’s problems have resulted in the Islandic currency falling 14%. Iceland sure likes flying close to the sun way too often.
https://in.reuters.com/article/us-wo...-idINKCN1NY1CQ
This is getting serious - Wow’s problems have resulted in the Islandic currency falling 14%. Iceland sure likes flying close to the sun way too often.
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Flagging how the health of its airlines could affect Iceland’s economy, the central bank said this month a 14 percent fall in the value of the krona against the dollar since September was “due to some extent to temporary uncertainty about domestic airline WOW air’s financing.”
https://in.reuters.com/article/us-wo...-idINKCN1NY1CQ
This is getting serious - Wow’s problems have resulted in the Islandic currency falling 14%. Iceland sure likes flying close to the sun way too often.
https://in.reuters.com/article/us-wo...-idINKCN1NY1CQ
This is getting serious - Wow’s problems have resulted in the Islandic currency falling 14%. Iceland sure likes flying close to the sun way too often.
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