wow air, deal, Icelandair, Iceland, airlines, buy, purchase, delay, cancel, go ahead, competition, shares, stock, trading, rescue, grounded, cancel, flights, travel, fly, Montreal, Cuba, Miami, jobless, redundant, union, VR, bankruptcy, number, people, unemployed, Keflavik, airport, airline, 1500, airport associates, government, jobs
Photo: WOW air

WOW grounds planes, cancels flights

The struggling carrier has grounded two of its aircraft, resulting in bookings being halted to a number of destinations.

WOW air has grounded two of its aircraft at short notice, one in Montreal, the other now standing in Miami, on the request of a company that is leasing the planes to the struggling Icelandic ultra-low-cost airline.

As a result, bookings have been closed for nine destinations on the WOW air website, the news site mbl.is reports. WOW has sent another aircraft to Montreal to rescue stranded passengers from there.

China-based BoComm leasing has repossessed the two Airbus A321 aircraft, reportedly over contract violations. The planes had been delivered to WOW in May 2017.

The groundings follow the failure of rescue talks with US investment firm Indigo Partners and with competitor Icelandair Group. All discussions between the parties have been halted.

WOW air says that a majority of its bond holders and other creditors are currently in talks with the aim of reaching an agreement on a voluntary restructuring.

This includes possible deal to convert debt into equity and fund the company towards long-term sustainability.

Saving mission
The founder and chief executive of WOW air, Skúli Mogensen, says he is doing his best to save the company from bankruptcy, mbl.is reports. Sources say that the carrier has debts of 22 billion Icelandic krona (€160 million).

WOW air is continuing its desperate search for a buyer or investor, having already launched a radical ‘back-to-basis’ restructuring process, slashing its fleet size by half and downsizing its workforce.

Related stories

Icelandair axes one more US route

WOW drops nine US routes, keeps four

WOW air to slash staff and fleet