Thursday June 4, 2020

Iceland’s airline boom loses its Wow factor

For an airline operating with wafer-thin margins, even a sustained run of high fuel prices can be an existential threat – but Wow probably wasn’t killed by adverse external circumstances

29th March, 2019
Wow Air fails to attract funding. Pic: Getty

On Thursday, Wow Air announced it would cease operations and cancel all flights after failing to attract funding to keep covering its losses. Founder Skuli Mogensen, a former tech entrepreneur, had tried everything – including a sale to flag-carrier Icelandair, which he had once mocked as a dinosaur. But those talks fell through, and so too did negotiations with US private equity firm Indigo Partners.

Founded in 2011, Wow Air grew rapidly. Last year, it...

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