Skúli Mogensen, former chief executive of bankrupt WOW air, has come up with a plan to resurrect the airline, having “learned his lesson”.
Skúli Mogensen, the former chief executive of the now-bankrupt WOW air, says he’s planning to bounce back again having “learned his lesson”.
Barely a week after the bankruptcy, which resulted in Iceland’s biggest-ever mass layoff, he says he hopes to resurrect the airline and is searching for up to US$40 million in investments to finance the project, Iceland Review reports.
An investor presentation dated April 3 that found its way to Fréttablaðið, Iceland’s biggest newspaper, details the prospective company’s operational plans up to 2021.
The new carrier would buy up WOW air’s remaining assets, including the WOW brand, and initially be a leasing business.
Immediately after getting an operating license, the company would, according to the plan, lease four A321neo and one A320neo to an unnamed European airline for 12 weeks.
But, by the end of June, it would be flying from Keflavík to cities in Europe and North America like London, Paris, Copenhagen, Amsterdam, Barcelona, Baltimore, Boston and New York.
The company would have a fleet of seven aircraft by this time next year and ten planes by 2021.
Mogensen is reported to be working on the project with other former employees. The presentation says the team has learned its lesson and that the new airline would stick to a purely low-cost model to avoid the mistakes of the past.
According to the plan, he and his team will own a 51% stake in the new company, while other investors will take the remaining 49%.
The company’s management is prepared for a wage reduction of 30% in the first year of operation, the plan says, and the company would be profitable in the second quarter of 2020.