Reykjavik (TAN): Icelandic budget airline Wow Air announced it was closing down on Thursday without any prior intimation to passengers leaving many in the lurch.
However, reports that the airline could cease operation any moment had been circulating over the past few days though the airline made no official announcement.
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The airline even continued selling tickets till the day it shut down, reports said. Wow Air is the latest of European airlines to down shutters in the past several months.
Founded by Skuli Mogensen, Wow Air flew 3.5 million passengers in 2018. The airline operated trans-Atlantic flights to cities such as New York and Toronto.
According to reports, the founder and CEO blamed several factors for the collapse. He cited “bad publicity” and “stricter payment terms” that put pressure on the company’s cash flow. Discussions about a potential acquisition of Wow by Icelandair Group also fell apart some months ago. Wow also unsuccessfully tried to restart discussions with Icelandair.
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“I will never forgive myself for not acting sooner,” Mogensen said in a letter to employees Thursday. “WOW was clearly an incredible airline, and we were on the path to doing amazing things again.”
More than 1,000 people will lose their jobs, reports said.
