An American aviation agency mentioned on Friday it had taken over Iceland’s bankrupt airline WOW Air along with native buyers and mentioned flights would resume in October.
USAerospace Associates CEO Michele Ballarin informed a information convention that the corporate would relaunch carrying the identical identify, and that its first flight could be between Dulles airport in Washington DC and Keflavik in Iceland subsequent month.
She gave no monetary particulars of the buyout, however USAerospace mentioned that it had earmarked $85 million to assist with WOW’s money stream.
The chapter of the low-cost provider March prompted an enormous stir in Iceland the place it was anticipated to have a adverse impression on tourism numbers, in addition to on the broader economic system which is headed for recession.
Till its insolvency, WOW Air carried greater than a 3rd of all guests to Iceland.
Some 51 p.c of the airline’s capital can be held by Icelandic buyers, permitting it to function in Europe, with the remainder taken up by USAerospace.
WOW’s headquarters can be at Dulles airport.
WOW Air will resume operations with two plane, Ballarin mentioned, however plans to function 10 to 12 planes by the summer season of 2020.
Till the US firm stepped in, the airline had run out of potential buyers after its native competitor, Icelandair, pulled the plug on takeover talks.
The relaunch of WOW Air comes at a troublesome time for Icelandic tourism.
Customer numbers to the island fell by 20 p.c within the second quarter of 2019 in comparison with the identical interval final 12 months as vacationers balked on the excessive value of holidaying there.
Iceland’s WOW Air funds provider collapses, cancels all flights
© 2019 AFP
Iceland’s WOW Air to renew flights with new homeowners (2019, September 6)
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