It has been reported that WOW air is to return to the skies! On the 28th of March 2019, WOW Air went bankrupt and ceased flying.
Now an American company called US Aerospace Associates LLC has acquired the remaining assets of WOW Air, Michele Ballarin, chairman of the company explained in a press release.
The new WOW Air will be based in Washington Dulles Airport (IAD), and the airline’s first flight after its bankruptcy is expected to be in October 2019, from Washington Dulles to Keflavik, Iceland.
According to Icelandic law, an Icelandic company must have at least a 51 percent Icelandic ownership. This means that the American company will hold 49% of the shares.
Ballarin explains that $85 million has already been raised for the operation, and that this amount will be used for operating the company in the first two years. There is provision to be able to increase this up to $100 million. For the first 6-12 months, approximately $25 million will be released for the company’s operating cost.
She stresses the importance of having sufficient capital, following a conservative financial policy and running the company as economically as possible. When WOW Air returns to the skies, it needs to be done correctly.
Ballarin’s first priority plan is to offer service to former destinations of the bankrupt airline, but she is also interested in adding Washington’s Dulles International Airport to the list of destinations. This is where the headquarters of USAerospace Associates is located.
Do you think it will help Icelandic tourism to have this budget airline flying to Iceland? Please let me know you thoughts in the comments below.