A new investor has emerged for struggling Icelandic carrier Wow Air, just days after Icelandair pulled out of an agreement to acquire the airline.
Private equity firm Indigo Partners has agreed in principle to invest in Wow, with the carrier’s CEO and primary shareholder Skuli Mogensen remaining a principal investor.
Terms of the transaction have not been disclosed, but the two parties said they would work to close the deal “as soon as practicable” following successfully completion of due diligence.
Indigo Partners has a controlling interest in US low-cost carrier Frontier Airlines, as well as stakes in Hungarian airline Wizz Air, Chilean low-cost start-up Jet Smart, and Mexican budget airline Volaris.
Commenting on the news 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.”
As reported by Business Traveller this week, Wow Air has been forced to return four A320 and A330 aircraft to lessors, as part of “necessary restructuring of the airline”.