From the ashes of WOW Air, a new budget airline hopes to rise—with a little help from overseas investment, who will have a majority stake.
The name of this new airline is tentatively being called WAB Air, Markaðurinn reports, and is aiming to be operational this autumn, starting with six airplanes flying to 14 destinations in Europe and the United States.
The investors have made projections on their likely returns as well. They expect some 1 million passengers to fly with WAB Air, which will hire 500 employees over the next 12 months, generating about 20 billion ISK in revenue.
While those are projections, there are more exact figures on who has invested and what stake they have.
The majority stakeholders will be Avianta Capital, an Irish company, which is sinking 5 billion ISK into WAB Air for a 75% stake in the company. Additionally, at least two Icelandic banks—Arion and Landsbanki—have been in discussions with the future airline to lend Avianta Capital about 3.9 billion ISK, for a duration of one year.
The remaining 25% stake will be owned by an Icelandic company, Neo. This company is owned by Arnar Már Magnússon, former managing director of operations for WOW Air; Sveinn Ingi Steinþórsson, from WOW Air’s finance department, and who was also on WOW Air’s board; Bogi Guðmundsson, an attorney for Atlantik Legal Services and the director of BusTravel; and Þóroddur Ari Þóroddsson, an airline business advisor.
More exact dates and destinations, if the project gets off the ground, can be expected later this summer.
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