Indigo Partners and Wow Air have held meetings this week in Reykjavik, Iceland as the initial steps to a potential Indigo investment after the signing of a term sheet last week.
A team from Indigo Partners spent the last two days with the carrier’s management to review the business and opportunities of the airline going forward.
Both said the overall process is “progressing” and both parties are working to finalise the investment. Issues remaining include Wow’s planned network development, vendor contracts including aircraft leases and certain waivers from WOW’s bondholders.
“These have been two very good days with detailed discussions around WOW’s current business and how we would envision it going forward. WOW air has a dedicated team and a strong brand that has significant potential,” said Indigo Partners managing partner, Bill Franke,
“We are very pleased with the visit from Indigo Partners and it’s clear that we can learn a lot from Bill Franke and his team on how to build a successful low cost airline. I don’t think we can find a better and more experienced partner to bring WOW air to the next level,” said Wow Aor chief executive officer and founder, Skuli Mogensen.
Indigo Partners reached preliminary agreement last week shortly after the Icelandair Group pulled the plug on taking over the cash-strapped low-cost carrier (LCC) which also last week 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.