Icelandic carrier WOW Air has ceased operations and cancelled all flights with immediate effect, barely 48 hours since its banks gave it a way out “for the long term”.
Skúli Morgensen the airlines CEO said he would never be able to forgive himself and that despite the earlier statement on Tuesday, the airline hasn’t found any funding.
That statement could land him in a heap of trouble with Icelandic regulatory authorities.
The airline has spent six months negotiating with Indigo Partners who finally had enough last week. WOW then went back to its first choice Icelandair Group but that deal collapsed on Monday.
On Tuesday the airline announced its banks had agreed a debt for shares deal, but whatever has happened in the last 24 hours has clearly scuppered that deal.
WOW expanded at a tremendous rate and this year had planned to launch flights to Delhi. Oil prices and over capacity, coupled to the Icelandic currency becoming so expensive, (caused by bitcoin miners in a large part, heavily based on the island with its cheap electricity from geo-thermal), that tourists and lay-over visitors vanished almost overnight.
Icelandair Group is now alone on the island and probably glad of it. It was in enough trouble itself.