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Wow Air has delighted passengers with low fares since 2011. But its creditors have not been as happy. Will that change if this investment goes through?
Brian Sumers, Skift | 5 years ago
This looks like a marriage of convenience for the carriers. Both are struggling, as is the wider Icelandic tourism industry. We'll have to wait and see whether one is better than two.
Patrick Whyte, Skift | 5 years ago
Passengers sitting in the back of the airplane hate it when an airline runs out of food for sale. But airlines also hate waste, and they usually must throw out uneaten fresh food the same day. How do airlines decide how much food and drink to board? It's a delicate dance.
Can Wow Air make it as a standalone airline? We're not sure. But the airline has some options for its future.
Brian Sumers, Skift | 6 years ago
Wow Air is being squeezed from all sides. It will need to reinvent its business if it wants to survive. The good news is that the company's founder and CEO, Skúli Mogensen, is willing to take some risks.
Iceland should be a good air market right now. But increased competitive capacity is putting major pressure on Icelandair. The carrier's new CEO is going to have to find a way to get the airline back on track.
European and U.S. airlines years ago underestimated the threat posed by short-haul discount airlines. Since then legacy carriers have treated transatlantic low-cost airlines as serious competitors. But there's reason to believe the low-cost model may not be as appropriate for longer routes. Legacy carriers might be OK this time.
Low-fare airlines got there first. Now, big carriers are launching basic economy fares across the Atlantic. Expect some confusion as their customers figure out the rules.
Micheline Maynard, Skift | 6 years ago
It's difficult to tell much from the first quarter results, but EasyJet seems on track to have a decent year. Acquiring some of Air Berlin’s operations will also enable it to grow in the lucrative German market.
Patrick Whyte, Skift | 6 years ago
Many airlines have been undone by ambitious expansion plans, and while Wow Air is profitable now, extra planes mean extra costs. Can a small carrier like Wow Air survive in a sector that is moving toward further consolidation?
