Indigo Partners has reached a preliminary agreement and agreed to purchase Wow Air “in principle” and would aim to close an agreement as soon “as practicable”.
The deal comes less than 24 hours after the Icelandair Group pulled the plug on taking over the cash-strapped low-cost carrier (LCC) which earlier this week returned four aircraft to lessors and seeking new funding.
The Phoenix-based private equity firm already has stakes in LCCs and ULCCs around the globe including US-based LCC Frontier Airlines, Mexican LCC Volaris, European LCC Wizz Air and Chilean LCC JetSMART.
In a statement, Indigo Partners “will complete its due diligence of Wow before the deal can close” and said terms were not disclosed.
Indigo managing partner, Bill Franke said the company has a “strategic vision for the airline” and looks forward to working with its employees and agents to “deliver that vision”.
Wow has reportedly ended routes at least five US destinations, including Cincinnati, Cleveland, Dallas/Fort Worth, New York John F Kennedy and St Louis, since this summer.
WOW’s chief executive officer and primary shareholder, Skuli Mogensen (pictured above) will 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.”