Post: #1

https://www.theverge.com/2019/3/28/18285...passengers

The Verge Wrote:Icelandic low-cost airline Wow Air today announced that it has ceased operations and all flights have been canceled. In a travel alert, the airline is advising that passengers who have a scheduled flight with the airline seek “rescue fares” from other airlines, or request a refund through their credit card companies or travel insurance, if it was purchased.

“We’re just kind of like cockroaches or garbage in their eyes,” stranded passenger Bjorn Kjartansson at Boston Logan airport told a local CBS News affiliate. Kjartansson said he was booked on a Wow Air flight home to Iceland when he received multiple delay notifications before the flight (and airline) was canceled. Passengers at other airports were simply told to leave and come back later.

...

Wow Air’s collapse follows a series of other sudden budget airline shutdowns in recent months. This past October, Denmark-based Primera Air abruptly ceased operations and announced plans to file for bankruptcy after experiencing delays in plane deliveries. Last month, British airline Flybmi also shut down without notice, citing inflated fuel costs and uncertainty over how it would operate in the aftermath of Brexit.

Post: #2

Good opportunity for some Icelandic guys to take advantage of some stranded WB's.

Post: #3

Their business model was a bit puzzling. They seemed to offer some truly rock-bottom fares between the Europe & USA (and I believe Europe & Asia as well). I'm not sure how they ever were going to turn a profit.

Post: #4

This was the airline I was on when the plane turned out to prevent me from landing in the UK.

https://www.rooshv.com/i-was-detained-by...ik-airport

Post: #5

Flew them once last year Amsterdam to LA. Once was once too much. Shit airline. This doesnt surprise me

Post: #6

As I said in the other thread, this will curtail a decent number of the Americans who were planning to visit Iceland, but tourism in the country will still remain high because it's a popular destination for a variety of reasons. The in-flight experience with WOW Air when I went last year was actually pretty decent, but the baggage fees sucked. Low-fare, long haul flights is a competitive area of the airline industry, though. And clearly the company wasn't generating enough working capital to keep its operations afloat.

Post: #7

I'm very much interested in the aviation industry and have done some work on it. Unfortunately, I feel that Norwegian will be next. I like them but they have expanded too quickly. The main issue with Wow Air was a fast expansion along with low load factor during the winter months hence the end of winter shut down. Wow Air flights were just too cheap to be sustainable aswell. Apparently Jet Blue are looking at starting TATL (Transatlantic) flights.

Icelandair have pushed prices up to a more appropriate level for the costs following this. Wow Air accounted for 33% of Keflavik passengers in 2018 so a big loss. 59 workers for the Reykjavik Tourist Excursions were let go straight away.

Post: #8

They also had no business class. Thats a huge part of revenue for the traditional TATL carriers.

With both Wow and soon probably Norwegian going it does remain to be seen if its possible to run a TATL low-cost service. Ryanair would be ideally located to run one you'd think with their Dublin base, size, and low cost expertise, but they've so far resisted. Probably for good business reasons.

Post: #9

I have to imagine this is really going to hurt the Icelandic economy given how many tourists they brought

Post: #10

(03-29-2019 03:41 PM)Rang off the Pipe Wrote:  As I said in the other thread, this will curtail a decent number of the Americans who were planning to visit Iceland, but tourism in the country will still remain high because it's a popular destination for a variety of reasons. The in-flight experience with WOW Air when I went last year was actually pretty decent, but the baggage fees sucked. Low-fare, long haul flights is a competitive area of the airline industry, though. And clearly the company wasn't generating enough working capital to keep its operations afloat.

I tip my hat off to the airline CEO for his ambition. Sadly, they just didn't execute the damn thing properly. The airline business is so cutthroat. Things seem a bit more feasible for discounters when they stick to domestic routes / one region within the globe (ie. Southwest, JetBlue, RyanAir, etc.).

Post: #11

If the Max ever gets approved again, would the discount airlines buy them at a discounted price? Especially if the major carriers refuse to buy them due to negative PR fears? Even thought the pilots get mandatory training for the Max now, I wonder if the public or airlines will be willing to fly on the Max if given a choice between airbus or and older 737.

Post: #12

R.I.P. Wowair. Memorable trip with my wife and kid back in 2007.
It was a great company

Post: #13

Holy crap - I was THIS close to booking on them last week for an upcoming trip to Europe. Turned out though that they were only a tiny bit cheaper after all of the excessive luggage fees, and no direct flights, so I booked Air Canada instead.

Post: #14

(03-29-2019 03:41 PM)Rang off the Pipe Wrote:  As I said in the other thread, this will curtail a decent number of the Americans who were planning to visit Iceland, but tourism in the country will still remain high because it's a popular destination for a variety of reasons. The in-flight experience with WOW Air when I went last year was actually pretty decent, but the baggage fees sucked. Low-fare, long haul flights is a competitive area of the airline industry, though. And clearly the company wasn't generating enough working capital to keep its operations afloat.

Agree, I flew it from San Francisco to Dublin a few years ago for a very short trip (~72 hours, was going out for a friend's wedding) and it was nothing special but fine for the price which was half of any of the other options. The layover in Reykjavik airport from like 1-5 am with everything closed kinda sucked though.

Post: #15

Ryanair have looked at transatlantic very seriously over the last 15 years but never pulled the trigger. I can see why they haven’t done it, they’d have to try point to point with the UK and Ireland to the North East and somehow try to hub from Stansted and Dublin to the rest of Europe. They’d have to partner with some American airline to access the rest of the US market, it seems pretty messy.

Post: #16

https://icelandmonitor.mbl.is/news/news/...f_for_wow/

"Skúli Mogensen, founder of WOW Air, is hoping for a new take-off for the airline, which was declared bankrupt a week ago. Along with other key figures from the airline, he is seeking capital in the amount of USD 40 million to be able to resurrect the airline. That capital would ensure investors a 49 percent stake in the company, while Skúli and co. aim to own 51 percent."

...lol?

Yes, let's take our failed business model and blow through MOARRR money!

Post: #17

Airlines file for bankruptcy often. Most large US carriers did earlier this decade.

They've performed very well financially since then.