Cash-strapped Iceland carrier Wow Air said after a challenging year it is now restructuring and simplifying its operations to “return to its roots” as a profitable ultra-low cost airline while discussions with Indigo Partners progress.
The carrier will reduce its fleet from 20 to 11 aircraft, all single-aisle Airbus and is in negotiations with its lessors to return some of its aircraft including all Airbus A330s. Four Airbus A321s are being sold in a transaction that will improve Wow Air’s liquidity by more than $10 million.
However, there will be no changes in the route schedule in December and early January, but later in January, Wow Air will implement a new flight schedule.
The airline said due to a smaller operation, a reduction in the workforce is inevitable and today (13 December), 111 permanent employees were laid off while contractors and short term staff will not be renewed for the time being.
“This is the most difficult day in the history of WOW air. We have dedicated people who have worked hard to make WOW air a reality and it breaks my heart to downsize the company.
“However, in order to ensure our future and preserve WOW air in the long run, we unfortunately must take these drastic measures,” said chief executive officer and founder, Skuli Mogensen (pictured above).