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Icelandair just acquired WOW

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Old Nov 5, 2018, 5:33 am
  #1  
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Icelandair just acquired WOW

This article needs to be translated, but WOW has now been gobbled up.

https://www.mbl.is/vidskipti/frettir...ZpNdtzXlmAm06U
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Old Nov 5, 2018, 6:09 am
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Getting shares in the combined entity is a better outcome for the shareholders than bankruptcy. The combined group will be able to deploy capacity more rationally
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Old Nov 5, 2018, 6:10 am
  #3  
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Oh, wow!
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Old Nov 5, 2018, 6:10 am
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It’s an all stock buy-out with WoW’s owner gaining 5,4 percent ownership of Icelandair. WoW will continue to operate as a separate entity. It will be interesting to see how (if) this will work out...
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Old Nov 5, 2018, 6:21 am
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The deal values Wow at as little as $18 million.
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Old Nov 5, 2018, 6:56 am
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I wonder if this will lead to any changes in partner FF program recognition (specifically, will Alaska MP recognize WOW?)
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Old Nov 5, 2018, 8:15 am
  #7  
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Here's an English article on the take-over.

https://www.flightglobal.com/news/ar...43zul9aBptD1eA

This seems a smart play for FI to remove a competitor but WOW has an all-Airbus fleet while FI flies Boeing so not sure how the two fleets will work together.
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Old Nov 5, 2018, 9:24 am
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Originally Posted by tcook052
Here's an English article on the take-over.umi

https://www.flightglobal.com/news/ar...43zul9aBptD1eA

This seems a smart play for FI to remove a competitor but WOW has an all-Airbus fleet while FI flies Boeing so not sure how the two fleets will work together.

All of WoW's Airbuses are leased whereas Icelandair owns most of their Boeings. With Icelandair in the driving seat, I see Boeings in WoW's future... Assuming it has a future -
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Old Nov 5, 2018, 11:21 am
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I wonder if this will have any cross-effect on existing bookings. I know it says they will operate as separate entities. But I have an FI booking CLE-LGW-CLE in June, wondering if they can switch it over to being operated by WoW.
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Old Nov 5, 2018, 11:49 am
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Originally Posted by bradleykhofmann
I wonder if this will have any cross-effect on existing bookings. I know it says they will operate as separate entities. But I have an FI booking CLE-LGW-CLE in June, wondering if they can switch it over to being operated by WoW.
Undoubtedly. Rather than being competitors with one airline initiating service to a US airport and the other jumping on, they’ll be partners. Flights can both be expected to get rationalised and become more expensive. It was only when WOW offered $99 one way seats that FI matched.

Link to USA Today article

Fleetwide, given FI has a fleet of mostly 757-200s but is going 737 MAX 8 iirc, it’s likely WOW will continue operating with their newer Airbii.

As to FFP, maybe, but look how IAG is treating their ULCC and Aer Lingus (kind of FFP relationship with BA, keeping it out of oneworld).

In any case, we’ll see how it develops, but if I lived in your shoes I would watch my ressie like a hawk.
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Old Nov 5, 2018, 1:08 pm
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Oh I'll keep an eye on it. CLE is one place where they butted heads with each other. WOW pulled out first but FI said they'll be back next year. I believe they truly will be, so I'm not truly worried my flights will go bye-bye. Just made me think it would be a downgrade to fly a WoW aircraft if they use WoW as a substitute to less robust destinations.
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Old Nov 5, 2018, 5:48 pm
  #12  
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Happy dance!!! Now if AS will accept the WOW flights for mileage. Whooopie.
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Old Nov 6, 2018, 4:43 am
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looks like there will be quite a few routes, on both sides of the atlantic, which will see less competition

https://www.icelandair.com/about/routemap/

https://wowair.co.uk/travel-info/route-map/
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Old Nov 6, 2018, 6:38 am
  #14  
 
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Originally Posted by bradleykhofmann
Oh I'll keep an eye on it. CLE is one place where they butted heads with each other. WOW pulled out first but FI said they'll be back next year. I believe they truly will be, so I'm not truly worried my flights will go bye-bye. Just made me think it would be a downgrade to fly a WoW aircraft if they use WoW as a substitute to less robust destinations.
perhps service and legroom might be a downgrade, but almost any plane is better than a 757 right?
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Old Nov 6, 2018, 8:56 am
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Originally Posted by spanglysteve
perhps service and legroom might be a downgrade, but almost any plane is better than a 757 right?
CLE-KEF is 737M8. At least for now.
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