New Take-Off for WOW?

Vala Hafstað

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. This is detailed in an investment statement, obtained by Morgunblaðið.

The airline would be based on a low-cost model. Morgunblaðið’s sources state that managers from Arctica Finance, a company that in the past worked closely with Skúli on obtaining capital for WOW, met last night with Sveinn Andri Sveinsson, one of two people appointed as liquidators, following the bankruptcy.

In the investment statement, the entrepreneurs detail their idea to begin by operating five Airbus aircraft, which to begin with would be involved in charter flights. That would provide a basis for obtaining an operating certificate, as would the business partners’ ability to buy back major assets from the WOW estate, among them the trademark WOW. In addition, an agreement would have to be reached with lessors to operate five aircraft. Finally, the new company would have to succeed in obtaining sufficient capital to begin operation.

The new company would expand much faster than did WOW in its infancy. Seven aircraft would be in operation as early as next year – a number not reached until 2016 for WOW, during its fifth year in operation.

Neither Skúli nor other representatives of the project would comment further on the plan.

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