Restructuring Icelandic carrier Wow Air has signed a deal to sell four Airbus A321s it has one finance lease to Air Canada in a move the struggling carrier says will improve its liquidity by more than $12 million.
Wow had earlier in December disclosed it was working on a transaction to sell four A321s, part of wider restructuring and fleet cuts it announced earlier this month. Under these plans it will reduce its fleet from 20 to 11.
The carrier now says its board of directors has approved the transaction to sell four A321s, identifying the Canadian carrier as taking the aircraft. Wow says it has had the aircraft on finance lease since 2014.
"The sale is a part of Wow Air's ongoing restructuring and to ensure the maximum utilisation of its remaining fleet," the airline says, noting the aircraft will be delivered in January 2019. "This transaction that will improve Wow Air's liquidity by more than $12 million," the airline says.
Investment firm Indigo Partners has been carrying out due diligence ahead of a potential investment in the carrier, having emerged as a possible investor after planned acquisition by Icelandair broke down in late November.
Flight Fleets Analyzer shows Air Canada already operates 15 A321s as part of its narrowbody fleet.,