Wow airlines

[LGS6753]

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.

[VickersVicount]

Wow to become Wow by Icelandair
(or maybe, Wow i wish we hadnt bothered)

[billyg]

ICE have put a swift end to the increasing duplication of their routes by WOW. Only a matter of time until the purple planes are no more !

[inOban]

Perhaps a moderator could join these posts with the existing WOW Airlines thread?

[davidjohnson6]

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

[SealinkBF]

Sold for €18m. That certainly indicates a troubled airline.

[CaptainProp]

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.

CP

[MCDU2]

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.

[Peter47]

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.

[Buster the Bear]

WOW operate Airbus, whilst Icelandair Boeing. Huge costs as a result of duplication.

[snn20]

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/icelandair-takeover-of-wow-air-possibly-in-jeopardy/
Also an email from Wow air to shareholders can be viewed here : https://s3-eu-west-1.amazonaws.com/wowair-web-files/Letter+to+WOW+air+bondholders.pdf

[Buster the Bear]

https://onemileatatime.com/wow-air-cancels-us-flights/

[Copenhagen]

Icelandair have decided not to acquire WOW.

https://globenewswire.com/news-release/2018/11/29/1658711/0/en/Icelandair-Group-s-acquisition-of-Wow-air-cancelled.html?print=1

[compton3bravo]

That's it then, just a matter of time unfortunately.

[EastMids]

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

[Hotel Tango]

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.

[snn20]

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

[Copenhagen]

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-wowair-m-a-icelandair-group/icelandair-scraps-plan-to-buy-its-rival-wow-air-shares-tumble-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.

[snn20]

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-wowair-m-a-icelandair-group/icelandair-scraps-plan-to-buy-its-rival-wow-air-shares-tumble-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.


Wow airs handler at KEF Airport Associates has laid off 237 staff this evening.

[CKT789]

https://markets.businessinsider.com/news/stocks/indigo-partners-and-wow-air-reach-preliminary-agreement-1027768928

Lifeline thrown....

[Cyrano]

WOW Air lays off 111 staff, cuts fleet from 20 to 11 aircraft, and cuts LAX and DEL routes from January: https://www.icelandreview.com/news/wow-air-lays-off-111-today/

[airbourne]

Update by WOW on their future.

WOW air is restructuring and going back to its roots
Reykjavik, Iceland – December 13, 2018

After a challenging year, WOW air is now restructuring and simplifying its operations to return to its roots as a profitable ultra-low cost airline while discussions with Indigo Partners progress.

WOW air's fleet will be reduced from twenty to eleven aircraft, all single-aisle Airbus. WOW air is in negotiations with its lessors to return some of its aircraft including all Airbus A330s. Four Airbus A321s are being sold in a transaction that will improve WOW air's liquidity by more than 10 million USD.

There will no changes in the schedule in December and early January. In January 2019, WOW air will implement a new flight schedule. WOW air will contact passengers affected by these changes.

Considering this smaller operation, a reduction in WOW air’s workforce is unfortunately inevitable. Today, 111 permanent employees were laid off across the airline. Contractors and short term staff will not be renewed for the time being. WOW air hopes to be able to offer affected employees a future employment opportunity when WOW air starts growing again.

“This is the most difficult day in the history of WOW air. We have dedicated people who have worked hard to make WOW air a reality and it breaks my heart to downsize the company. However, in order to ensure our future and preserve WOW air in the long run, we unfortunately must take these drastic measures“ says Skuli Mogensen CEO and founder of WOW air.

After this restructuring, about one thousand employees will remain with WOW air.

This information is information that WOW air hf. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 11:00 GMT on December 13, 2018.

[pabely]

Sold it's Gatwick slots and moving full London operation to STN, will that survive with such competition up the road at LTN ?

[cornishsimon]

Sold to. ?


cs

[southside bobby]

...Wizz Air.

[pabely]

Sold to. ?


cs
It was not disclosed and they don't move fully across until April, if they survive that long as obviously a cash generation exercise.

[AirportPlanner1]

Sold it's Gatwick slots and moving full London operation to STN, will that survive with such competition up the road at LTN ?

Assuming the airline survives probably yes, they already operated daily this summer with competition both up and down the road and unlike LTN’s offerings Wow will offer through flights to the US/Canada.

[True Blue]

Wow had 2 flights a day to Lgw and daily to Stn during the summer. The schedule for next summer is one daily, a bit of a reduction. Basically, the Stn operation continues as was, the 2 Lgw flights have been cancelled,so not much of a gain for Stn I think, in spite of the press releases.

[southside bobby]

"Not much of a gain for STN"...

Well at present planning WOW actually return to STN & almost certainly with the downsizing both London airports were not.

The STN ops will now be year round instead of seasonal.

The STN ops will be retimed giving better connections to US/Canada.

STN ops now commence 31st March 2019 as opposed to 25th April this year.

So a little kudos for STN certainly.

[compton3bravo]

If it lasts until then Bobby. All depends on Indigo Partners.

[davidjohnson6]

Have Indigo and Wow actually signed a legally binding contract (not some fluffy preliminary in-principle piece with a thousand caveats allowing Indigo to walk away without paying a penny) that would require Indigo invest at least $50m or more into Wow and be enforceable in a court ? Or have Indigo already handed the money over already ?

I know due diligence was taking place earlier this month but nothing seems to have happened with Indigo since then...

[LGS6753]

Have Indigo and Wow actually signed a legally binding contract (not some fluffy preliminary in-principle piece with a thousand caveats allowing Indigo to walk away without paying a penny)
Almost certainly not. Nothing would be signed without due diligence, and that would take a number of weeks. I'm pretty sure it's "fluff".

[southside bobby]

Indigo Partners...

The (perhaps) subtlety appears unperceived or uncommented then...

With a common factor at present being Indigo Partners as lead investor in Wizz & engaged in negotiations/talks with WOW, recently Wizz obtain the 4 daily take off/landing slots currently used by WOW at Gatwick & wef 31/3/19 launch two new daily routes from there.

Coincidence or initial synergy in play?

Indigo Partners with a very large portfolio of single aisle Airbus a/c for future delivery would it could be imagined find another partner airline a very useful addition for the placing of some of those frames.

[Flightrider]

Not completely correct.

Airport Coordination (https://www.acl-uk.org/completed-trades/) shows that one of the daily sets slots recently acquired by Wizz at Gatwick came from Flybe. The other came from Wow. Wow's second set has gone to easyJet.

[tubby linton]

https://wowair.is/investors/media/ Musical chairs....again

[davidjohnson6]

Puts Wow Air in an very weak position. Sounds like Icelandair can pretty much name their terms - and those terms will be inferior to those on offer a few months ago

[lfc84]

"Aiming to conclude by Monday 25th March"

WOW

Sounds like there'll be a take it or leave it situation

[paully]

"Aiming to conclude by Monday 25th March"

WOW

Sounds like there'll be a take it or leave it situation

Fuel bill due maybe??

[Big Tudor]

Guess with their Max 8 & 9’s on the ground and no date for a return, Icelandair might view WOW as a quick fix for the gap in their fleet?

[inOban]

I was thinking that! Any Airbus airline will have a value to a Boeing one at present.

[tubby linton]

All change again! https://newsclient.omxgroup.com/cdsPublic/viewDisclosure.action?disclosureId=881012&lang=en

[compton3bravo]

I fear the worst unfortunately. Good look to all employees.

[BAladdy]

So far today WW have cancelled on trip to and from KEF and there are long delays on a couple of flights. Anyone know the reason from disruption?. The flights affected are:

Cancelled Flights

WW810 - KEF to LGW
WW811 - LGW to KEF

Delayed Arrivals

WW252 from YUL scheduled to land 04:35 - Delayed 15hrs 10 mins
WW853 from DUB scheduled to land 13:35 - Delayed 12hrs 50 mins
WW815 from LGW scheduled to land 23:40 - Delayed 3hrs 20 mins

Delayed Departures

WW852 to DUB scheduled to depart 06:55 - Delayed to 20:50
WW814 to LGW scheduled to depart 15:50 - Delayed to 20:30

[Dct_Mopas]

An aircraft has apparently been grounded by the lease company. In Montreal according to various articles. So WOW are short of an aircraft by the sounds of it which will probably not be helping.

[BAladdy]

Looks like they are a couple of tThey currently have 2 A321’s on the ground in Montreal both have been there 10hrs+. Hopefully it is just 1 aircraft that is grounded there.

[rog747]

They sadly seem to be about to go bust from the latest news unless a Fairy godmother arrives very soon - Icelandair pulled out last night.

[caaardiff]

Dct_Mopas

Reading elsewhere that the lease company involvement is only a rumour and WOW are claiming it's a tech prob. Another aircraft was sent to YUL, so one would hope if it is leasing issues that doesn't get caught up as well. Opinion seems to sway towards tech issues which has led to the other delays and cancellations.
Claims about bankruptcy shouldn't be made or assumed on open forums when there's hundreds of employees involved, especially if there's no solid evidence yet, just media speculation. It doesn't do anyone any favours.

[rog747]

Sadly the state of the airline is well known for many months now - so no assumption nor rumours there Caaardiff

The latest financial news last night was there is little time left for a bail out or to find a buyer but of course we do hope that the company will pull through OK if at all possible

News at noon today
Troubled Icelandic carrier WOW Air is running out of options for future financing, after their last hope of investment pulls out. Icelandair have stated ‘all discussions have ended’, leaving WOW Air with no more buyers in the pipeline. With dozens of flights cancelled today and widespread concern that they’ve reached the end of the road for the struggling carrier?

[Dct_Mopas]

caaardiff

This news article in Iceland stated otherwise, so hence my post. Seems very specific, this is what’s already spreading around the internet freely.

https://www.mbl.is/vidskipti/frettir/2019/03/25/vel_wow_i_montreal_tekin_af_felaginu/

Via a translate website it says:

“Airpla*ne WOW air, TF-PRO, which ferry had passengers from Montreal airport in Can*ada last nig*ht, was chil*led at the requ*est of the landlord yester*day. Sources stated that it is not cle*ar whet*her WOW air is able to relea*se the machine again with pay*ment to the aircraft rental comp*any.

The passengers carry*ing the machine, along with the crew, were dri*ven to a hotel at nig*ht and reported that due to "technical difficulties" the flig*ht would be su*spended un*til now tonig*ht. Last nig*ht th*ere was anot*her machine from WOW air, TF-DOG, which was recently depart*ing from Frankfurt to Kefla*vik, depar*ted to Montréal and will be used to ferry the co*astal flor*ets back home tonig*ht. Accord*ing to in*formati*on from the airport in Montreal, the eng*ine is on schedule at. 19:05 local time tonig*ht.

Sources claim that WOW air has lost the right to use TF-PRO for breach of contract terms, and that the owner of the machine, Jin Shan 20 Ire*land Comp*any Lim*ited, ow*ned by the aircraft comp*any Bocomm, has comm*issi*o*ned the machine el*sewh*ere.”

[onichols1]

Given the current economic climate, it's likely the situation could get much more severe!

[airbourne]

Supposed to be an update at 9am. No flights in the air right now.

[Falcon666]

https://www.bbc.co.uk/news/business-47731043

[FFHKG]

FR24 is now showing all their flights departing KEF as cancelled

[TBSC]

Finito:
https://wowair.com/travel-alert/?_ga=2.244178881.531290190.1553760059-668069186.1553516478

[daz211]

All flights cancelled amid finalising equity release.

[NickBarnes]

Just announced they have ceased operations daz, see previous post to yours

[LiamNCL]

The end game for WOW , was always coming unfortunatley.

[mik3bravo]

Sad day for staff but can you help me understand your comment a bit further. What are you basing that on, and why could it not have been prevented?

[shamrock7seal]

What was so terrible at this company?

Costs?
Revenue per seat?
Over-demand to/from Iceland?

[LiamNCL]

Its been well broadcast the financial struggle at WOW for best part of a year and although they pulled routes and tried to scale back without a takeover it was always going to come down to where they would shut up shop.

[cornishsimon]

So where are the fleet currently ? Are they all owned by the same leasing company or is there multiple leasing companies involved ?

[AirportPlanner1]

shamrock7seal

Probably a combination of all three. Icelandair have been playing them at their own game of opening up more niche US routes. In Europe the range of airlines into Iceland now is mindblowing, within this decade it was pretty much just Icelandair, Iceland Express/Wow, SAS and some German charters. In the UK the only routes were Heathrow, Stansted and Glasgow. Now London alone had until yesterday seven airlines serving all six airports. KEF is served by a number of major airlines.

Wizz probably now deliver as many flights and pax to KEF as Wow did in their early days.

[Cyrano]

Here's an interesting snippet, from this analysis of WOW Air's strategy and network (https://www.routesonline.com/news/29/breaking-news/283618/wow-airs-changing-route-network-prior-to-its-demise-/?utm_medium=email&utm_source=the-hub&utm_campaign=the-hub-EU&utm_content=the-hub-20190329):
Although Wow Air pursued a transatlantic connecting strategy, data from Sabre Market Intelligence shows that 95 percent of its traffic was local to/from Iceland in 2018, hinting it was much less reliant on connecting Europe-North America than its business model suggested.
I was really surprised to read this - I'd had the impression that it was all geared towards transatlantic connections.

[nohold]

TF-PRO A321-211SL is due to ferry into Shannon late on April 9th 2019, presumably ex Montreal.

[TartinTon]

Sabre Market Intelligence will apply to bookings made through Sabre...be interesting to see what was booked through the other GDS systems and how much of it's traffic this represents. I find it difficult to believe that 95% is local traffic.

[USERNAME_]

They're back......


https://onemileatatime.com/new-wow-air-launching/

[willy wombat]

Having read this, I wouldn’t hold your breath.

[mikkie4]

Nut cutlets vegi burgers sunflower seeds for afters decaf coffee all sounds revolting give me a steak anytime

[EI-BUD]

From the video I can pick this up in regards to references to the business model;

Premium economy experience for all pax
Free water in board - already sourced
A lounge for all the passengers to use
Michelin star chefs to redefine food offer
A mix of boeing and airbus
Zero debt and an investment of $85M
A fleet of 10-12 aircraft
Launching in October,not clear if that means flying or opening for bookings
Suggestion is that it's for the Icelandic audience. Despite the population being tiny
Competitive fares for everybody
Big focus on cargo especially fish

sounds delusional. It seems huge attention to micro detail but limited info on the big ticket items such as airline operational model. A mixed fleet, and high cost practices eg lounge for all and free trimmings on board. Despite all of that she is a great speaker and very confident...interesting talk..

[AirportPlanner1]

I’m sceptical but the Icelandic market isn’t as tiny as you think. They travel I believe something like 4-5 times per year on average, so 300k is more like 1.2-1.5 million. Plus inbound tourism.

[Maoraigh1]

https://www.icelandreview.com/business/wow-buyer-ballarin-claims-indirect-ownership-in-icelandair/
New claims.