Frontier Airline backer Indigo Partners has stepped in to invest in cash-strapped Icelandic budget carrier Wow Air, just hours after Icelandair pulled the plug on its own proposed takleover.
The equity firm, which is led by serial LCC investor William Franke, says it hopes to close the transaction as soon as possible following successful completion of due diligence.
WoW Air’s CEO Skuli Mogensen will remain a principle investor in Wow.
"We have a strategic vision for the airline and look forward to working with its employees and agents to deliver that vision," Franke said.
Wow Air serves 25 destinations in Europe and North America but has been faced with mounting challenges of late.
It returned four aircraft to lessors recently and announced the axing of flights to Cincinnati, Cleveland and St Louis.
Indigo owns low cost carrier Frontier Airlines and has major stakes in Volaris, Europe’s Wizz Air and JetSmart in Chile.
