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WOW. The Deal is Off.

So Icelandair is NOT going to acquire WOW.

https://www.usatoday.com/story/travel/flights/todayinthesky/2018/11/29/no-deal-icelandair-plan-acquire-rival-wow-off/2147594002/

And WOW is returning 4 leased planes to their owners (20% of fleet).

https://www.usatoday.com/story/travel/flights/todayinthesky/2018/11/28/wow-air-drop-more-u-s-cities-its-fleet-shrinks/2141935002/

“When asked if any changes are coming, WOW representative Romano told Today in the Sky that the carrier’s ‘winter schedule is currently under re-evaluation due to changes in WOW Air’s fleet, but nothing has been finalized.’”

Posted by
5011 posts

Yep. Big changes coming. I have a feeling the cut-rate ticket prices that have made so many swoon in recent years may become a lot harder to find. We'll see.

Posted by
7405 posts

Glad I am not holding a WOW ticket.
With 20% of the fleet going away, there will have to be a commensurate reduction in service ...ouch

Posted by
2537 posts

The Icelandair deal was at a fire sale price. Many analysts speculated it was because WOW was about to run out of cash and fold.

I had a friend proudly tell me a few days ago that he got $500 tickets for his family to fly on WOW to Germany next summer. I don't know whether to warn him or let him continue in blissful ignorance. My gut feeling is that it's a sunk cost at this point -- why make him anxious about it? Perhaps it will all work out...

Posted by
2537 posts

...and, yes, I'm also happy not to be holding a WOW ticket right now.

Posted by
18752 posts

Dave, I don't know what I'd do about informing the friend. If you tell him what's going on, it will definitely induce both anxiety and uncertainty. It's not clear what would be the best action for him to take at this point. However, if he is going to end up with useless tickets, he will almost assuredly pay more for replacements next summer than he would pay by monitoring fares and buying on a dip within the next few months. Good luck with your decision.

Posted by
1178 posts

Dave, you have information your friend doesn’t have. That information could help your friend mitigate problems later on.

Your friend will have greater anxiety and uncertainty if WOW does go belly up. It will also cost more to correct the problem at that point.

Let your friend know and let him decide what to do with the info. You’re not helping him by keeping this a secret. Telling him now gives him an opportunity to create a “plan B”.

Posted by
5011 posts

Yeah, best to be up front with what's known now. What's known now is that is that WOW's future is uncertain. It doesn't necessarily mean anyone's ticket is going to become worthless - but that's a possibility. How likely/unlikely? Hard to say now, but it's worth watching and at least thinking about a Plan B.

Posted by
2537 posts

It's a family of 7. So it's already a pretty big investment.

Posted by
2537 posts

Wow. I didn't see that coming. Sweetheart deal, I'm guessing.

Better yet... I think I'm off the hook!

Posted by
7884 posts

I hope WOW recovers and continues on, it’s a good airline.

Posted by
2537 posts

I kind of hope it continues to have ups and downs just so I can write WOW in more titles and posts.

Posted by
9643 posts

It's a smart investment by Indigo Partners. They have a large investment in three other discount airlines and placed a very large order for Airbus planes last year.

Rather than lease aircraft from it's current supplier, I would think WOW will now lease them from Indigo.

The question is whether or not there is enough business between the two Icelandic carriers to survive.

Posted by
1178 posts

It's a family of 7. So it's already a pretty big investment.

That means there are less options for a Plan B. A longer lead time on problems is better.

Posted by
7405 posts

It's a family of 7. So it's already a pretty big investment.

Is your friend the type of person who would have purchased trip insurance?

Posted by
2537 posts

It's a family of 7. So it's already a pretty big investment.

Is your friend the type of person who would have purchased trip
insurance?

Probably not. If the Indigo investment goes through, though, I don't think WOW will fold. It will continue to be an okay airline when things go right, and a terrible airline when things go wrong. It will have legs at least through the summer.