WOW Air Returns Four Aircraft In Restructuring
Low cost Icelandic carrier WOW air will reduce its fleet size and return four aircraft to their lessors as it restructures its operations.
In a regulatory statement the airline said it was downsizing its fleet by two Airbus A320s and two A330s “as a part of necessary restructuring of the airline and to ensure maximum utility of its remaining fleet.”
The restructuring will not impact on its plans to fly to India, the airline said.
The Reykjavík-based carrier said that since a bond issue in September “a number of external and internal events have worsened significantly and the company is now working on securing its long term funding.”
WOW said bad publicity about the financial health of the company has had a more negative impact on sales and credit position than it anticipated. It warned that its Q4 results will be materially worse than originally anticipated.
WOW agreed earlier this month to a takeover by local rival Icelandair. The all-share deal will see WOW shareholders own around 5.4 percent of Icelandair Group’s stock. The airlines will operate under separate brands after the transaction, Icelandair said.