The new Icelandic carrier PLAY has been forced to delay its initial ticket sales.
It’s failed to get external investment because potential buyers baulk at the fact they’re expected to pay $14m for 50% of a company with no real value when the ex-WOW and Air Atlanta Icelandic shareholders have an equal 50%.
As a result PLAY is now offering 70% to a potential investor. Nobody is saying what happens if the other $14m fails to materialise, as there’s substantial doubt over some of the senior managers – Ex-WOW. They we’re responsible for the mismanagement of that airline and its collapse.
PLAY’s startup process is already concerning in itself. It’s been chaotic and clearly management has underestimated the way it needs to present itself to investors.
It seems naïveté runs deep even amongst the more experienced leadership team and there is too much wishful thinking, untempered by reality and commercial practicalities.
Once again it seems, the desire to found an airline is being driven by desire and not business sense.