Doubts About WOW Negotiations Arise Skip to content
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Doubts About WOW Negotiations Arise

Despite a drawn-out negotiation period with Indigo Partners, WOW air has yet to close the deal with the company. One news source cast doubt on whether negotiations between the two were in fact still ongoing. WOW representatives are sharing very little about the company’s current situation, leading many to speculate once again how a potential bankruptcy of the airline could impact the Icelandic economy.

Svanhvít Friðriksdóttir, WOW’s Public Relations Officer, said she was unable to comment on the state of negotiations with Indigo Partners. Vísir reports that WOW air’s creditors have postponed a decision on whether or not to forgive a large portion of WOW’s debt until Monday. Unconfirmed sources report that the airline has proposed obtaining state-backed loans from Arionbanki bank to support their operations in the short term.

Government watches closely

Prime Minister Katrín Jakobsdóttir stated she could not comment on whether WOW had requested a state-guaranteed loan. She added that the government has been following the airline’s situation closely and has considered all options. “Of course, WOW is a big company, and of course it matters how they finish up their business. That’s of course the reason that we’ve been monitoring the developments closely. But we hope for the best, of course,” she stated.

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