Tag: Icelandair (Page 2 of 2)

Iceland’s WOW Air To Reduce Fleet, Cut Jobs

December 13, 2018 / WIL BALDWIN

COPENHAGEN (Reuters) – Icelandic low-cost carrier WOW air, which is in talks with U.S. private equity fund Indigo Partners about a potential investment, said on Thursday it would reduce its fleet to 11 aircraft from twenty and cut 111 jobs.

Indigo is managed by Bill Franke, the veteran U.S. low-cost airline investor, and has also made investments in U.S.-based Frontier Airlines, Mexico’s Volaris, Chilean carrier JetSmart and Hungary’s Wizz (WIZZ.L).

“After a challenging year, WOW air is now restructuring and simplifying its operations to return to its roots as a profitable ultra-low cost airline while discussions with Indigo Partners progress,” WOW Air said in a statement.

It said it was in negotiations with its lessors to return some of its aircraft including all Airbus A330s. Four Airbus A321s are being sold in a transaction that will improve its liquidity by more than $10 million, it said.

WOW Air will have around 1,000 employees after the job cuts, it said.

Indigo and WOW Air have not disclosed any details about their talks, but WOW Air has said that CEO and primary shareholder, Skuli Mogensen will remain a principal investor in WOW after the deal.

Icelandair (ICEAIR.IC) last month scrapped its plan to buy the privately-held airline.

(Reporting by Teis Jensen; Editing by Kirsten Donovan)

Image from http://wowair.us

Icelandair Group’s Acquisition Of Wow Air Cancelled

November 30, 2018 / WIL BALDWIN

Icelandair has released the following statement regarding the mutual decision to cancel Icelandair’s takeover of Wow Air:

November 29, 2018 04:00 ET | Source: Icelandair Group hf.

The acquisition of Icelandair Group of Wow air, based on a purchase agreement signed on November 5th, has been cancelled. Both parties agree on this outcome.

Icelandair Group hf. issued a stock exchange release last Monday, November 26th, stating that the company estimated that it would be unlikely that all of the conditions in the share purchase agreement would be fulfilled by the shareholders’ meeting on November 30th. That situation remains unchanged.
Therefore, it is unlikely that the Board of Directors of Icelandair Group can recommend to the shareholders that they agree to the purchase agreement. Furthermore, the Board does not intend to submit to the shareholders’ meeting a proposal to postpone decision-making on the purchase agreement.

Due to this this situation, both parties agree to abandon the aforementioned purchase agreement.
Icelandair Group will hold its shareholders’ meeting on Friday, November 30, as previously announced. An authorisation proposal for the Board to increase the share capital of Icelandair Group is on the agenda of the shareholders’ meeting.

Bogi Nils Bogason, Interim President & CEO of Icelandair Group:
“The planned acquisition of Icelandair Group of Wow air will not go through. The Board of Directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing. We want to thank WOW air‘s management for a good cooperation in the project during recent weeks . All our best wishes go out to the owners and staff of the Wow air. “

Skúli Mogensen, CEO and Founder of Wow air:
“It was clear at the outset that it was an ambitious task to complete all the conditions of the share purchase agreement in this short period. We thank the Icelandair Group’s management team for this challenging project, and also wish the management and staff of Icelandair Group all the best.”

Further information:
Bogi Nils Bogason, Interim President & CEO
bogi@icelandairgrop.is

Following the news of the cancelled deal, it has been reported that budget airline roup Indigo Partners has agreed to buy a stake in the struggling discount carrier.

Click the link below for the full Indigo Partners-Wow Air story!

Indigo Partners invests in Wow Air

Icelandair Agrees To Buy Rival WOW Air

November 7, 2018 / WIL BALDWIN

(Reuters) – Icelandair (ICEAIR.IC) has agreed to buy rival Icelandic airline WOW air from its founder for about $18 million in an all-share deal aimed at creating a stronger international competitor.

Airlines are looking to consolidate in many markets as a result of rising running costs, largely to higher oil prices, and increased competition from low-cost, budget carriers.

WOW has focussed on low-cost travel across the Atlantic, using smaller single-aisle planes to fly between Iceland and destinations in the United States and Europe.

While there has been some consolidation in Europe over the last year, with Lufthansa and easyJet acquiring parts of failed airline Air Berlin in 2017, the chief executives of the continent’s biggest airline groups say more is to come.

Struggling Italian carrier Alitalia is seeking new investors and British Airways-owner IAG (ICAG.L) bought a stake in Norwegian Air (NWC.OL) with a view to a takeover.

A jump in the oil price could spur more consolidation, as weaker players are likely to suffer over the winter period as costs rise during a period when fewer people tend to fly.

Both Icelandic airlines, which Icelandair said would continue to operate under separate brands, use Keflavik Airport as their main hub between Europe and North America.

Together they have a combined 3.8 percent share of the transatlantic market, Icelandair, which warned on profit in July due to an increase in capacity on some routes across the Atlantic, added in a statement.

Icelandair shares jumped by nearly 50 percent after it announced the WOW takeover, the biggest one day percentage gain in its stock price since September 2009. The headline value of its offer for WOW was based on Friday’s closing share price.

“WOW air has been Icelandair’s main competitor and the acquisition is likely to lead to increase in average fares and better capacity control on the market to and from Iceland.” Arion Banki analyst Elvar Ingi Moller said.

WOW’s founder and sole owner Skuli Mogensen, who will receive 272 million shares in Icelandair, said that the deal will strengthen its international competitiveness.

Moller said WOW, which has 14 Airbus A320 family aircraft and three widebody A330 planes, has come under pressure due to higher oil prices and lower air fares in recent months.

Icelandair said its shareholders are due to meet to vote on the deal in the near future.

(Reporting by Tommy Lund; Additional reporting by Saray Young; Editing by Jon Boyle/Louise Heavens/Alexander Smith)

Image from www.boeing.com

Icelandair Introduces Boeing 737 MAX Service

April 18, 2018 / WIL BALDWIN

Over the last few years, Boeing has developed a groundbreaking new aircraft that combines less fuel use, less noise and a revolutionary redesign of the passenger space. The result is a flight like you’ve never known before.

We are proud to be among the very first airlines to take the aircraft of the future into use. Over the coming years, we’ll receive a total of 16 Boeing 737 MAX planes and we look forward to sharing the new way of flying with our passengers.

Click the link below for the full story!

Icelandair Boeing 737 Max

Read the Boeing roundup…

December 12, 2017 / WIL BALDWIN

Boeing Roundup: Dreamliners grounded after Rolls-Royce engine problems…747 order…Boeing HorizonX chief Steve Nordlund

Click the link below for the full story!

Boeing Roundup

Icelandair 767 aircraft begin flying

May 13, 2016 / WIL BALDWIN

Icelandair 767 aircraft begin flying. Icelandair focuses on providing transatlantic flights that are operated through the airlines hub in Reykjavik, Iceland. The airline had focused on a single aircraft type to help streamline its costs for maintenance and training. This model had been perfected by Southwest Airlines in the US domestic market. Icelandair used the same model, but with the Boeing 757 aircraft to meet their longer flight range requirements. The Boeing 757 aircraft that are in service have become in very high demand due to their size and range capabilities. This caused the airline to look for other aircraft options in order to expand.

Icelandair 767 fleet to grow from 2 to 4 planes

The first of the two previously announced Boeing 767 aircraft is now flying. The second will begin scheduled service on May 15, 2016. The airline just announced that it will add 2 additional Boeing 767 aircraft to its fleet for next summer. The newly acquired aircraft have been retrofitted by Icelandair with in-flight entertainment systems, mood lighting, new seats, and WiFi. The 767 aircraft will be used on routes between Boston, Chicago, and New York (JFK) and Amsterdam, Copenhagen, and London (Heathrow). The Icelandair 767 aircraft have been fitted with 262 seats, which represents a 44% increase in seating capacity over the airlines 757 aircraft. The Icelandair fleet is currently comprised of 26 Boeing 757’s and 2 Boeing 767’s. Icelandair had agreed to purchase 4 new Boeing 787 Dreamliner aircraft, but transferred the purchase rights on 3 of those aircraft to Norwegian Airlines. The airline will presumably transfer the purchase right to its fourth 787 on order as well.

Icelandair currently flies to the US cities of Anchorage, Boston, Chicago, Denver, Minneapolis-St. Paul, New York (JFK & Newark), Orlando, Portland, Seattle, and Washington (Dulles). The airline also serves the Canadian cities of Edmonton, Halifax, Montreal, Toronto, and Vancouver. More information about Icelandair’s fleet can be viewed at www.icelandair.com

Icelandair 767

Image from Icelandair.com

Icelandair adding flights to Paris Orly Airport

February 4, 2016 / WIL BALDWIN

Icelandair has announced that it will be adding service to the Paris Orly Airport beginning this summer season. Flights will initially operate 2 times a week beginning on the 28th of March. Service will increase to 3 times a week beginning on the 21st of May, and then go up to 5 flights a week starting in June. The flights will be in addition to the current existing Icelandair service to the Paris Charles de Gaulle Airport. The airlines flights to Paris began over 40 years ago at Orly Airport, before moving the flights to the newer Charles de Gaulle Icelandair adding flights to Paris Orly Airport Airport. The Paris Orly Airport is located just 8 miles south of many of the major tourist attractions of Paris, including the Eiffel Tower, Place de la Concorde, and Notre Dame. Orly Airport also has high speed metro train access from both of the airport terminals.

icelandair-757