Icelandair to buy Wow in US$18M share deal

By News staff

Icelandair is set to acquire Wow Air in a share deal worth US$18 million.

In an announcement made on Monday, Icelandair said the companies will continue to operate under separate brands.

With the deal, the two airlines will have a combined 3.8 per cent share of the transatlantic market.

Both airlines fly to Toronto and both have expanded their operations in recent years.

“The tourism industry is one of the cornerstones of the Icelandic economy and it is important that flights to and from Iceland will remain frequent,” Bogi Nils Bogason, interim president and CEO of Icelandair Group, said in a statement.

“A new chapter now starts where WOW air gets an opportunity to grow and prosper with a strong backer like Icelandair Group that will strengthen the foundations of the company and strengthen its international competitiveness even further,” Skúli Mogensen, the founder and CEO of Wow, said.

Icelandair Group’s shareholders will vote on the deal in the coming days.

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