Icelandair Group has entered into a share purchase agreement to purchase the entire share capital of its budget rival WOW air.
Still subject to approval by Icelandair Group‘s shareholders, the Icelandic competition authorities and a due diligence revue, the deal would grant shareholders of financially troubled Wow Air the equivalent of 5.4 percent of Icelandair’s shares. The companies will continue to operate under separate brands. Their combined market share on the transatlantic market is around 3.8%. WOW, which has 14 Airbus A320 family aircraft and three widebody A330 planes, has come under pressure due to higher oil prices and lower air fares in recent months.