Wow Air Announces Details of Potential Indigo Partnership
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Icelandic ultra-low-cost carrier Wow Air has released new details regarding its potential partnership with its latest proposed financial savior, private equity firm Indigo Partners. [Update, 3/28/2019: WOW Air has ceased operations. Find our ongoing coverage of WOW Air’s collapse, and what affected passengers can do about it, here.]
According to a Jan. 9 letter to Wow Air bondholders obtained by Air Transport World, Wow founder and CEO Skuli Mogensen says Indigo is set to take a 49% stake in the struggling carrier in the form of a convertible loan. Wow has been struggling to get its financial house in order over the past few months, making cuts to both its routes and fleet. Despite its financial strife, Wow has not stopped announcing new cheap fares, like $49 tickets from US cities to Europe.
Indigo partners stepped up at the end 2018 to signal its interest in the Reykjavik-based airline. The latest announcement is now giving more details surrounding that possible arrangement. Under the current agreement, Indigo is set to invest as much as $75 million in Wow. At the time of the first announcement, there was no indication as to how big of a stake in the airline that sum would give Indigo. The loan would have a 10-year maturity, and the total amount invested will depend on the actual needs of the airline. That initial ownership stake could be increased during the term of the loan from Indigo.
The airline and Indigo are still in negotiations on how to deal with a current outstanding loan “from a current shareholder,” who is most likely Mogensen, who said in the past he has floated the airline at least 5.5 million euro to keep it afloat. Negotiations are focused around converting that current loan to equity or leaving the loan in place before Indigo finalizes its investment.
H/T: ATW Online
Featured Photo by Wow Air.
Sign-up Successful!
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.