16 SEPTEMBER 2019
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Moves to revive Icelandic low-cost carrier Wow Air, possibly within a few weeks, were being reported in Iceland last week after a US-based investor came forward. Wow collapsed earlier this year (BTN 1 April), leaving passengers stranded.
Reports in the Icelandic press in July said Wow Air assets were being bought up by an unnamed source, including the airline's product and logo, domains, booking systems, software, sales computers, uniforms, and most of its spare parts and tools.
US-based businesswoman Michele Ballarin was then identified as leading the initiative through a company called US Aerospace Associates. Local press said it would be an Icelandic company with 49% US ownership.
Further details were made public on Friday, when Ballarin gave a statement and press conference, broadcast by the Visir website, confirming the new owners putting in up to US$85m (about £67m) to revive Wow Air operations over the first two years.
Ballarin said the plan would be to start with two aircraft, which the company already had, on flights between Keflavik and Washington. The fleet would increase to four by next summer, eventually increasing to about 10-12.
The company would operate initially under a US AOC but would apply for an operating licence in Iceland in due course.
All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum
David Bentley, Oldham
Icelandair won't make the same mistake twice. They'll price Wow out of the market. I'll be surprised if it ever takes off.