Icelandair To Take Over Rival WOW Air
Icelandair has agreed to buy WOW air in an all-share deal that would see WOW shareholders own 5.4 percent of Icelandair Group’s stock.
A group statement said the airlines will continue to operate under separate brands after the transaction, with the combined carriers having a transatlantic market share of around 3.8 percent.
Icelandair sees the acquisition as creating opportunities for both airlines to provide stronger competition to carriers in the international market.
Icelandair Group chief executive Bogi Nils Bogason said “There are many opportunities for synergies with the two companies… The tourism industry is one of the cornerstones of the Icelandic economy and it is important that flights to and from Iceland will remain frequent.”
WOW air founder Skúli Mogensen said he is proud of the airline’s success and development as a pioneer in low cost flights across the Atlantic.
“A new chapter now starts where WOW air gets an opportunity to grow and prosper with a strong backer like Icelandair Group,” Mogensen said.
The acquisition is subject to a vote of Icelandair Group’s shareholders, due in 3-4 weeks.