Struggling low-cost carrier WOW Air has re-opened talks with rival Icelandair after a rescue deal lined up with a US investor collapsed.
With just days to go before Wow must present a rescue plan to creditors, Icelandair confirmed it had agreed to get back round the table with the airline, which offers budget flights from the UK to the US and Canada via Reykjavik.
Wow had been hoping to sell a 49% stake to US private equity fund Indigo Partners in return for a minimum $75 million investment over 10 years, but the deal fell through this week.
Last month, the airline’s lenders agreed to give it until March 29 to come up with a rescue plan. It is understood that talks with Icelandair, which involve the Icelandic authorities, will conclude by March 25.
Icelandair last year pulled out of an all-share deal to buy privately-held Wow, which has said it will reduce its fleet from 20 to 11 aircraft and cut 111 jobs to reduce its debts.
