Icelandic carrier Wow Air’s future appears increasingly uncertain after Icelandair Group ended newly-initiated discussions with the budget airline.
Wow Air had entered talks with Icelandair Group on 21 March after previous potential suitor Indigo Partners pulled out of investment negotiations.
But Icelandair Group says a possible involvement in Wow’s operations “will not materialise”.
“All discussions between the parties have ended,” it adds, without elaborating on the reasons.
The talks had originally been due to continue until 25 March.
Icelandair Group’s renewed interest in Wow marked the second time the two sides had embarked on tie-up discussions.
It had previously disclosed, in November last year, that it intended to take over Wow, which was suffering heavy losses.
But pre-conditions for a shareholders’ meeting on the acquisition were not met, prompting Icelandair Group to abandon the merger plan.
Wow Air has pared back its services to an Airbus A320-family operation, having previously expanded with A330s.
Source: Cirium Dashboard