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Skúli Mogensen before the bankruptcy

Wizz Air investor backs Wow Air

Deep-pocketed Arizona-based Indigo Partners has agreed in principle an unspecified WOW air investment.

On the evening of the same day Icelandair axed its plan to buy local low-cost rival WOW air, Indigo Partners stepped in to say that in principle it agreed to invest in the struggling budget carrier.

Deep-pocketed Arizona-based Indigo already has major investments in four airlines – Hungary’s Wizz Air, the US ultra-low-cost carrier Frontier Airlines, JetSmart in Chile and Mexico’s Volaris.

The terms of a deal have not been disclosed, but it has been revealed that WOW’s founder and chief executive Skúli Mogensen would remain a principal investor.

“The demand for low-cost air service continues to expand rapidly worldwide, and with Indigo as a partner we hope to take full advantage of this highly attractive market segment,” Mogensen said.

“I am excited to work with Indigo and I am convinced it is the best long-term move for our people and passengers.”

Bill Franke, managing partner at Indigo, said that the chief executive and WOW’s management “have done a remarkable job in creating a well-regarded, successful ULCC brand. We have a strategic vision for the airline and look forward to working with its employees and agents to deliver that vision.”

Massive order
At the end of 2017, Indigo Partners put up the biggest ever order for European aircraft manufacturer Airbus. The order had a value of nearly $50 billion and was for 430 planes in the A320neo series. These are to be distributed by to Wizz Air, which will get 146, 134 to Frontier, 70 to JetSmart and 80 to Volaris.

WOW air also already operates aircraft in the A320ceo and A320neo series.

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