Icelandair Group has agreed to acquire seven-year-old WOW Air, bringing together two carriers seeking a stronger foothold in an increasingly competitive international airline market.
Both carriers have a presence at BWI/Marshall Airport. WOW pulled into BWI in 2015, making a splash with cheap flights to Reykjavik, Iceland, where passengers can connect to more than a dozen other European cities via the carrier.
Icelandair recently returned to BWI after pulling out of the airport for more than a decade. The carrier offers four weekly roundtrip flights to Reykjavik.
The two carriers will operate under separate brands, with a combined market share on the transatlantic market of 3.8 percent.
WOW Air stockholders will receive 272,341,867, or about 5.4 percent of Icelandair Group‘s shares after the transaction.
The acquisition is subject to approval by Icelandair’s shareholders, Icelandic competition authorities and a due diligence process.
WOW Air has reportedly struggled financially…Read the full story from the Washington Business Journal.