Indigo Partners has cancelled negotiations with cash-strapped Icelandic low-cost carrier Wow Air – who in turn has restarted discussions with the Icelandair Group.
Indigo Partners was set to make an investment in Wow and earlier this month both said discussions were continuing in “good faith” and they were aiming to close a deal by 29 March.
Wow Air said it has started discussions with Icelandair Group and the parties aim to conclude the negotiations by Monday (25 March)
Wow Air and Indigo Partners first started meetings in Reykjavik back in December over an investment shortly after the Icelandair Group pulled the plug on taking over the LCC, but the discussions have restarted and it appears something has changed.
Late last year, Wow returned four aircraft to lessors and revealed it was seeking urgent funding to keep it afloat.
Phoenix-based private equity firm Indigo Partners 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.
Indigo was prepared to increase its planned investment in Wow to US$90 million, up from $75 million previously.