Indigo Partners Agrees WOW air Investment
A day after Icelandair cancelled its plans to acquire local rival WOW air, Indigo Partners announced an in principle agreement to invest in the low cost carrier.
Indigo, which has major investments in four airlines, did not disclose terms of the deal. They did reveal, however, that WOW’s founder and chief executive Skúli Mogensen would remain a principal investor in the airline.
Mogensen said “The demand for low-cost air service continues to expand rapidly worldwide, and with Indigo as a partner, we hope to take full advantage of this highly attractive market segment. I am excited to work with Indigo and I am convinced it is the best long-term move for our people and passengers.”
Indigo Managing Partner Bill Franke said the CEO and WOW management “have done a remarkable job in creating a well-regarded, successful ULCC brand. We have a strategic vision for the airline, and look forward to working with its employees and agents to deliver that vision.”
Icelandair was about to complete its WOW acquisition, but said in a November 26th stock exchange release that not all of the terms of the deal were likely to be met by Friday’s shareholder meeting. On Thursday it said the situation was unchanged and that the two parties had agreed to abandon the takeover.
Indigo Partners has stakes in US ultra low cost carrier Frontier Airlines, Chile’s JetSMART, Mexico’s Volaris and Hungary’s Wizz Air. It is headquartered in Phoenix, Arizona.