Iceland-based WOW Air was a low-cost carrier that operated commercial flights between 2012 and 2019. Headquartered in Reykjavik, the airline flew to over 35 destinations at one point from Keflavik International Airport. Wow Air operated scheduled flights to various destinations in Europe, North America, and India as part of the expansion plan in Asia.
The airline ceased operations in March 2019 following a two-year series of losses. WOW Air's management tried to acquire emergency funds to keep the airline afloat but did not succeed.
.jpg "Why Did Wow Air Collapse? (1)")
Photo: Airbus
At the time of suspension, more than 4,000 passengers were left stranded. The airline's website states,
“Wow Air has ceased operation. All Wow Air flights have been cancelled. Passengers are advised to check available flights with other airlines. Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circ*mstances.”
WOW Air operations
The airline’s most recent fleet
| Aircraft | Number | Passengers | Comments | ||
|---|---|---|---|---|---|
| W | Y | Total | |||
| Airbus A321-200 | 5 | 8 | 192 | 200 | One was wet-leased to Aruba Airlines. |
| 3 | 8 | 202 | 210 | ||
| Airbus A321neo | 2 | 8 | 192 | 200 | |
| Total | 10 | ||||
WOW Air had humble beginnings with a pair of Airbus A320-200 aircraft in 2012. The airline began its first service on May 31st, 2012, flying from Keflavik to Paris Charles de Gaulle airport. Within a few months of stable operations, the airline acquired Iceland Express's network and operations in October. Towards the end of 2012, WOW Air operated flights to several major destinations, including London Gatwick, Copenhagen, Berlin, Kaunas, Warsaw, and Salzburg.
Photo: Airbus
The airline achieved a major milestone in 2013, recording over 400,000 passengers. A year later, in December 2014, WOW Air served its one-millionth passenger. Expanding into North America was the next item on the airline's list. Iceland Express had operated several destinations in North America, so the transition was fairly simple after acquiring operations.
Honest Fares
- Bags - Everyone travels with luggage, be it alone, as a couple, or as a family
- Seats - Whether it is a window, an aisle seat, at the back of the aircraft, an exit row, or in front of the aircraft, we want you to be happy with your seat choice without paying a significant surcharge for that choice
- Nutrition - WOW Air is committed to bringing better nutrition onboard.
In 2015, WOW Air began flight expansion into North America, starting with the United States. The airline leased two widebody Airbus A330-300 aircraft from Air Europa to begin long-haul operations. In 2015, the airline recorded approximately 750,000 passengers. By 2016, the airline was flying to multiple destinations in the US and Canada, including flights to Los Angeles and San Francisco. At the end of 2016, the airline's annual passenger capacity more than doubled to over 1.6 million.
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The airline’s former fleet
| Aircraft | Total | Introduced | Retired |
|---|---|---|---|
| Airbus A320-200 | 2 | 2012 | 2018 |
| Airbus A320neo | 1 | 2017 | 2019 |
| Airbus A330-300 | 3 | 2016 | 2019 |
End of operations
On March 28th, 2019, the airline announced that it was ceasing all operations effective immediately and canceling all flights. As a result, thousands of passengers with booked flights were stranded. The airline issued a statement requesting passengers to book flights with other airlines. The primary reason for the shutoff was the financial crisis.
According to Skuli Mogensen, the founder and CEO of WOW Air, as reported by The Guardian,
“I will never forgive myself for not acting sooner. Wow was clearly an incredible airline and we were on the path to do amazing things again.”
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WOW was an ultra-low-cost Icelandic airline that collapsed into bankruptcy before turning 8 years old.
Four airlines, namely easyJet, Iceland Air, Norwegian, and Wizz Air, offered discounted fares to rescue passengers who were booked on WOW Air before the cease of operations. WOW Air also stated that passengers who booked flights using their credit cards may contact their financial institutions to check whether they qualify for a refund. Moreover, their travel agents mostly covered passengers with package holiday purchases.
Photo: WOW Air
The irony of the matter was that the airline was selling tickets on its website up until the last minute before ceasing operations. A consumer group noted that at 7 AM on Thursday, March 28th, 2019, tickets were available for purchase at the carrier's website. According to a travel editor at the consumer group, Rory Bolend,
“Passengers will quite rightly be appalled that Wow Air was still selling tickets right up to the moment it collapsed, knowing full well that any tickets sold would likely not be worth the paper they are printed on.”
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So, why did the airline fail?
Since the beginning of operations, the airline has been operating on minimal margins. The airline sometimes kept fares below the minimum to quickly expand into newer markets. However, Mogensen stated that the ambitious airline essentially failed because it took up a fleet of A330-300 jets, which resulted in a tremendous increase in fuel costs. The company was already in too much debt at the time. In the hope of receiving more funding, the airline acquired widebody aircraft for its operations.
Photo: Vytautas Kielaitis | Shutterstock.com
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Moreover, the already challenging environment for European low-cost airlines only added to WOW Air's financial difficulties. In a nutshell, the ambition to become too big too fast brought the airline down.
What are your thoughts on the collapse of WOW Air? Did you ever travel with WOW Air? Share your experience in the comments section.
