Indigo Partners and Wow air have agreed in principle for Indigo to invest in Wow. The terms of the transaction were not disclosed, however. In a statement, Wow Air said that following successful completion of due diligence, the parties would work to close “as soon as practicable”. Wow’s CEO and primary shareholder, Skuli Mogensen, would remain a principal investor in Wow upon completion of the transaction.
“The demand for low-cost air service continues to expand rapidly worldwide, and with Indigo as a partner, we hope to take full advantage of this highly attractive market segment,” said Mogensen. "I am excited to work with Indigo and I am convinced it is the best long-term move for our people and passengers."
“Skuli and WOW’s management and employees have done a remarkable job in creating a well-regarded, successful ULCC brand,” said Bill Franke, Managing Partner of Indigo Partners. “We have a strategic vision for the airline, and look forward to working with its employees and agents to deliver that vision.”
Wow Air was advised by Plane View Partners.
Wow Air’s revenue for the period January to September 2018 were US$501 million – an increase of 31% compared to the same period last year. The total loss for the period was US$33.6 million compared to US$13.5 million loss for the same period last year.