The planned take over of budget carrier Wow Air has been abandoned by rival Icelandair.
The intention to acquire Wow Air, which runs low cost transatlantic routes from Iceland with connections from the UK, was announced on November 5.
But Icelandair today cancelled the deal after admitting that it was unlikely that all the conditions attached would be fulfilled in time for a shareholders’ meeting today (November 30).
The breakdown of the agreement follows Wow Air cutting its fleet by two Airbus A320s and two widebody A330 aircraft as part of “necessary restructuring” of the airline and to ensure maximum utility of its remaining fleet.
The restructuring will not impact airline’s plans to fly to India but came as the carrier admitted it was “working on securing its long term funding”.
Icelandair Group interim president and CEO Bogi Nils Bogason said: “The planned acquisition of Wow Air will not go through.
“The board of directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing.
“We want to thank Wow Air‘s management for a good co-operation in the project during recent weeks.”
Wow Air founder and CEO Skúli Mogensen added: “It was clear at the outset that it was an ambitious task to complete all the conditions of the share purchase agreement in this short period.
“We thank the Icelandair Group’s management team for this challenging project, and also wish the management and staff of Icelandair group all the best.”