WAB air to Rise from the Ruins of WOW Air
Two ex-directors at the now defunct airline WOW air are working on founding a new low-fare airline from the ruins of WOW air. The twosome is working on raising the airline from the ground with investors. It is planned that WAB air becomes operational next fall. According to plans, the airline will operate six airplanes which will fly to fourteen destinations in Europe and the United States. WAB is a working name at the moment and stands for We Are Back.
The plans account for a million passengers travelling with the airline in the first year, and that it will hire 500 employees in the next twelve months. The revenue is expected to be close to 20 billion ISK (140m €, 157m $) in the next year. Former founder and CEO of WOW air Skúli Mogensen is not involved with the new airline.
This was revealed recently in Markaðurinn, a supplement to the business journal Viðskiptablaðið. The Irish investment fund Avianta Capital has committed 5 billion ISK (35m €, 39.2m $) towards new shares. Avianta receives a 75% share in WAB air in return. The investment fund is owned by Aislinn Whittley-Ryan, the daughter of one of the owners of low-fare airline Ryanair. The remaining 25% will be in control of the company Neo, owned by two former WOW air directors. The ex-directors are Arnar Már Magnússon, who ran WOW air’s flight operations, and Sveinn Ingi Steinþórsson, from WOW air’s economic department. Along with the WOW air employees, Neo is owned by Bogi Guðmundsson, a lawyer at Atlantik Legal Services and a board member of BusTravel, as well as Þóroddur Ari Þóroddsson, a consultant in airplane trade.
There have been discussions with Icelandic banks Arion Bank and Landsbankinn in order to secure a 3.9 billion ISK (27.4m €, 30.7m $) to Avianta Capital. The loan window would be for one year, and the loan is intended for use as equity to secure a loan from an unnamed Swiss bank.