Indigo Partners Steps In To Buy Out Minority Stake Of WOW Air In Shadow Of Firings

Indigo Partners, the company behind budget airline Wizz Air, are strongly considering buying an undisclosed minority stake in WOW Air, Stundin reports. Meanwhile, 237 employees of one of WOW Air’s major service providers, Airport Associates, have been fired.

WOW Air founder and CEO Skúli Mogensen (seen above) will maintain a majority stake in WOW Air, but beyond that, few details have been disclosed. However, Skúli says in an announcement that he believes the move will be the right one for both WOW Air employees and passengers alike.

At the same time, there was little cause for celebration for employees of Airport Associates, one of the largest service providers for WOW Air, who fired 237 employees yesterday. This is the largest mass firing the Reykjanes area has experienced since the NATO base severely downsized in 2006, as Víkurfréttir points out.

WOW Air has been in a tough financial spot for a long time now. While it seemed as though Icelandair Group was going to buy out the beleaguered airline, that deal ultimately fell apart when Icelandair Group was unable to meet the conditions of the purchase.