Wow Air: Icelandic airline cancels flights as it fears possible collapse

The low-cost Icelandic airline Wow Air canceled its morning flight between Gatwick and Reykjavik, as fear of its imminent collapse was felt.

Last week, a US investment group interrupted discussions on the rescue of the airline in financial difficulty.

Discussions resumed on Wednesday with Wow Air rival Icelandair about a takeover. A previous rescue, valuing Wow Air at around £ 13 million, was dropped in November 2018.

When negotiations resumed last week, the Icelandair Group announced: "The discussions will be based on the doctrine of competition law with respect to the defense of the failing company."

"Defending the failing business" is a legal term that indicates that, if the transaction does not succeed, the weaker party will probably cease trading.

The potential rescuer announced Sunday night: "The Icelandair Group has decided that its possible involvement in Wow Air's operations, as announced on March 20, 2019, would not materialize.

"Therefore, all the discussions between the parties are over."

Bogi Nils Bogason, managing director of Icelandair Group, said: "The financial situation and operations are such that we see no reason to continue."

Wow Air then issued its own statement announcing a debt / equity agreement for bondholders and other creditors. the company towards long-term sustainability.

In a few hours, Wow Air began to cancel flights, including the early morning trip from Reykjavik to Gatwick, which was scheduled to depart at 6:20 am on Monday.

A pbadenger, Amy Bellety from Hertfordshire, tweeted: "It was necessary to make another reservation on another flight with another airline as a replacement flight within 2 days.

"No help on food / flight refund."

The return leg in the Icelandic capital, which was due to leave Gatwick at 9:30, was also blocked.

A pbadenger booked to fly from Gatwick, Shari Handley, tweeted: "You canceled our return flight later this morning!"

She had to travel via her home country to Detroit via Iceland.

"We filled out your form and a customer service representative was supposed to contact us" very soon ", but we never heard anything. Help me! We have to go home. "

The airline replied, "My sincere apologies for all the inconveniences you have caused. Thank you for sharing your reservation number for badistance.

Other guests complained of delays in the payment of an allowance for flight interruption.

"I'm looking for an answer for a week without success", wrote Graham Munro. "Can any one answer my firm date request to which my allowance will be paid?

Wow Air also canceled flights between Reykjavik and Chicago and Pittsburgh on Monday, with flights to Brussels and Barcelona blocked Tuesday.

The airline was founded by Icelandic entrepreneur Skúli Mogensen. He first flew to Paris on May 31, 2012 and later this year took over an existing airline, Iceland Express.

In 2018, Wow Air carried 3.5 million pbadengers. It employs approximately 1,000 people and operates a fleet entirely composed of Airbus.

His rival, Primera Air, went bankrupt in 2018.