Financially struggling Icelandic low-cost carrier, Wow Air, will sell four Airbus A321s to Air Canada as part of major cost-cutting strategies.
The airline owned the aircraft on finance lease since 2014, and decided to transfer them to Air Canada in January 2019, to liquidise around $12m for WOW
For the past 18 months, WOW has been reporting losses and restructuring flight routes and offloading aircraft in a bid to cut cost. US based, private equity firm ‘Indigo Partners’ is currently carrying out due diligence on WOW for a potential investment(take over), which could save the WOW from going bankrupt.
WOW Air, started in 2012, had been enjoying a rapid growth with a fleet of 20 aircraft at its peak, but reported $45m losses between summer 2017 and 2018,
The carrier returned four aircraft (two A320 and two A330) to leasing companies in November. Now selling four A321s to Air Canada and one A330 to be offloaded, will leave only 11 aircraft in WOW fleet.