Icelandair was supposed to take over WOW Air, but then it pulled out of the deal. But, just hours after Icelandair abandoned plans to buy its struggling domestic rival Wow Air, Indigo Partners, the private equity firm that controls Frontier Airlines, agreed in principle to invest in the carrier. The deal potentially ensures that WOW will remain a viable enterprise.
Indigo said it will make its investment after “successful completion of due diligence.” Indigo said Skuli Mogensen, Wow Air’s founder and CEO. The amount of the investment was not disclosed.
Indigo usually favors short-haul, low-cost airlines. If the deal goes through, it will be interesting to see how it will change Wow’s strategy.
Indigo Partners is an investor in Tiger Airways based in Singapore; Spirit Airlines based in Ft. Lauderdale, Florida; Wizz Air Holdings, Plc, a ULCC with multiple bases in Central and Eastern Europe; Frontier Airlines, a ULCC based in Denver; Volaris Airlines, a ULCC based in Mexico City; and JetSMART, a ULCC based in Chile. Indigo is headquartered in Phoenix, Arizona.