Skúli Mogensen, former CEO of now-defunct WOW air, hopes to resurrect the airline which announced bankruptcy just one week ago. Skúli is now searching for up to USD 40 million (ISK 4.8 billion) in investments to finance the project. According to an investor presentation, the new company would buy up WOW air’s remaining assets, including the WOW brand, and would be flying from Keflavík Airport to 13 destinations by the end of June. Fréttablaðið reported first.
Ten aircraft by 2021
An investor presentation dated April 3, now in the hands of Fréttablaðið, outlines the prospective company’s operational plans until at least 2021. The presentation states that the new airline would first take on lease projects for larger European airlines, starting operations almost immediately. By the end of June, it would be flying to destinations in Europe and North America, such as London, Paris, Amsterdam, Barcelona, New York, and Boston. The company expects to be operating seven aircraft by the spring of 2020 and ten by 2021.
WOW team has “learned its lesson”
Skúli and other key figures involved in the company’s establishment would own a 51% share in the new company, while investors would have a 49% stake. They expect liquidity to be positive in the second quarter of next year. The investor presentation specifically states that the company’s CEO would take a 30% pay cut in the first year of operations.
Skúli would fill the position of CEO at the new company, as at WOW air, while others involved in the project were also key figures at the now-bankrupt company. The investor presentation states that the team has learned its lesson and the new airline would stick to purely low-cost policies in order to avoid the mistakes of the past.