WOW air 2.0?
According to Fréttablaðið, Skúli Mogensen has compiled an investment statement, dated yesterday, saying he plans to set up an airline that sticks strictly to the budget model; as WOW air did in its first, profitable years.
Skúli is reportedly working with his core management team from WOW air, who plan to own 51 percent of the new company. Investors are being called upon to inject around 40 million US dollars in exchange for a 49 percent share.
According to Fréttablaðið’s sources, the new airline plans to provide charter services to large European airlines during its first 12 weeks before commencing scheduled flights between Keflavík and 13 European and North American destinations.
WOW air was declared bankrupt a week ago following a financially difficult period during which managers desperately sought new investors. The company lost 22 billion krónur last year. Skúli told RÚV shortly after negotiations with possible investors broke down that time simply ran out for the airline, even though a rescue package was achievable.
WOW air’s core operations using narrow-body Airbus jets was fundamentally profitable, Skúli maintains. Branching out into long-haul routes with wide-body jets, as well as experiments with different classes of seating, were expensive mistakes that complicated operations that reportedly contributed most to WOW air’s downfall.