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WOW headed for bankruptcy [operations ceased 28 March 2019]

WOW headed for bankruptcy [operations ceased 28 March 2019]

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Old Mar 21, 19, 3:39 pm
  #31  
 
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Yes, things are coming to a head. Indigo Partners is now out of the picture and they will not save WOW. Now it is up to Icelandic government to play midwife between Icelandair and WOW, and manage an orderly merger.
https://wowair.is/investors/media/

It also seems that Icelandic aviation authority running KEF has managed to rack up +18M USD increase in liabilities from its customers during this year. I'm willing to bet majority of that is WOW, but probably also Icelandair since their CEO was complaining about it earlier this month along the lines of "Why is Isavia funding competitors".

It's also interesting that Isavia has mandated WOW to have one frame at KEF at all times, to guarantee payment of their debts. However WOW does not own any of their planes. So effectively WOW has forced their leasing company to explicitly guarantee their debts, since Isavia has had no troubles "confiscating" planes previously. Situation that is surely untenable for their lessors.

Also TF-NEO, which had been the "guarantee plane" during the last few days, left for "service" to Europe earlier today, which apparently caused a little bit of a storm in a teacup...
It appears the plot is thickening.

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Last edited by docjones; Mar 21, 19 at 4:06 pm
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Old Mar 21, 19, 3:41 pm
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Originally Posted by docjones View Post
Yes, things are coming to a head. Indigo Partners is now out of the picture and they will not save WOW. Now it is up to Icelandic government to play midwife and manage an orderly merger.
https://turisti.is/2019/03/icelandai...fja-vidraedur/

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What's left in terms of assets? Handful of A320s?
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Old Mar 21, 19, 3:52 pm
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Originally Posted by bman1002 View Post
What's left in terms of assets? Handful of A320s?
Nothing. WOW already sold all the planes they owned to Air Canada.
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Old Mar 21, 19, 5:35 pm
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WoW can't die fast enough. It's a scourge to the industry. I hope that Skuli Mogensen is left penniless.
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Old Mar 22, 19, 2:50 am
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Originally Posted by iflyjetz View Post
WoW can't die fast enough. It's a scourge to the industry. I hope that Skuli Mogensen is left penniless.
They’re certainly good for keeping fares down. The bloated Icelandair will no doubt enjoy less competition and they can now go back to their monopolistic roots on flights to and from Iceland.
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Old Mar 22, 19, 6:40 am
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Originally Posted by iflyjetz View Post
WoW can't die fast enough. It's a scourge to the industry. I hope that Skuli Mogensen is left penniless.
It can’t live long enough. It’s a scourge to oligopolistic industry cartel kingpins and a boon to the industry’s consumers in the markets of relevance.

Mogensen won’t end up penniless, even with WOW’s demise.
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Old Mar 22, 19, 10:51 am
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Originally Posted by Braniff View Post


They’re certainly good for keeping fares down. The bloated Icelandair will no doubt enjoy less competition and they can now go back to their monopolistic roots on flights to and from Iceland.
Icelandair posted a $56M USD net loss for 2018. Their highest net profit in the last 5 years was $111M USD; about enough to buy a new 737 Max 8. The airline industry is defined by razor thin margins.

Originally Posted by GUWonder View Post


It can’t live long enough. It’s a scourge to oligopolistic industry cartel kingpins and a boon to the industry’s consumers in the markets of relevance.

Mogensen won’t end up penniless, even with WOW’s demise.


Yes, because the airline industry is such a high margin business where they 'gouge' their customers with fares that are inflation-adjusted lower than any time in history.
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Old Mar 22, 19, 2:42 pm
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Originally Posted by Braniff View Post
It was just reported this evening in the Icelandic media that talks are now on (again) for Icelandair to take-over WOW. The talks include the government and are to finish by Monday.
I was wondering if the Frontier airlines would bail them out - nope - talks were shut down:
Bankruptcy soon @ WOW ???
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Old Mar 23, 19, 12:38 pm
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Should be an interesting week for me. Flying tomorrow ewr to kef. Fly back next Saturday night...hope they can survive one more week!
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Old Mar 23, 19, 4:31 pm
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Originally Posted by iflyjetz View Post
Icelandair posted a $56M USD net loss for 2018. Their highest net profit in the last 5 years was $111M USD; about enough to buy a new 737 Max 8. The airline industry is defined by razor thin margins.



Yes, because the airline industry is such a high margin business where they 'gouge' their customers with fares that are inflation-adjusted lower than any time in history.
The TATL flying industry cartel kingpins have some serious money-making machines in play amongst them in recent year, to the tune of some of them being profitable by billions of USD per year in some rather recent years — amounts that, inflation-adjusted, are way higher than they used to be, and are a product of consumers paying more than was the case before the cartel kingpins got so many governmental waivers and favors from the USG. Of course in any large industry with multiple players, not all players are exactly equal.
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Old Mar 24, 19, 12:28 pm
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Icelandair Ends Talks with WOW

Icelandair has just walked away from talks on a possible take-over of WOW. Government had announced previously they would not rescue WOW. Things look dour.
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Old Mar 25, 19, 8:20 am
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Plane seized in Montreal.

https://www.mbl.is/vidskipti/frettir...n_af_felaginu/
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Old Mar 25, 19, 9:38 am
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Originally Posted by largeeyes View Post
Makes it even easier for AC to take delivery now :-)

Is this pretty much an hour by hour death watch for WOW?
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Old Mar 25, 19, 4:45 pm
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Originally Posted by largeeyes View Post
And in Cuba:
https://ifn.news/posts/wow-air-cance...repossessions/

There might be last-ditch debt-for-equity swap:
https://www.mbl.is/vidskipti/frettir...reisn_wow_air/
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Old Mar 25, 19, 7:20 pm
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If anyone wants to follow their entire fleet to see which is the next to fall, here are the links of their active planes I could find from https://www.planespotters.net/airline/WOW-air

https://flightaware.com/live/flight/TFNEO
https://flightaware.com/live/flight/TFCAT
https://flightaware.com/live/flight/TFDOG
https://flightaware.com/live/flight/TFGMA
https://flightaware.com/live/flight/TFGPA
https://flightaware.com/live/flight/TFJOY
https://flightaware.com/live/flight/TFNOW
https://flightaware.com/live/flight/TFPRO
https://flightaware.com/live/flight/TFWIN
https://flightaware.com/live/flight/TFDTR
https://flightaware.com/live/flight/TFSKY
https://flightaware.com/live/flight/TFDAD
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