10/24/2012: WOW Air Acquires Rival Iceland Express

DALLAS — Today, in 2012, Icelandic low-cost carrier WOW Air (WW) acquired rival Reykjavk-based low-fare airline Iceland Express (HC).

WOW Air stressed that this was a takeover, not a merger, with WW purchasing HC’s route network, branding, and customer base. It also allowed the airline to gain access to "all the knowledge and expertise accumulated by the company during its years of operation."

By acquiring HC, WOW was able to rapidly expand its network. The airline immediately announced that frequencies would be increased on existing routes to London Gatwick (LGW) and Copenhagen (CPH). New routes to Berlin (SXF), Kaunas (KUN), Salzburg (SZG), and Warsaw (WAW) were also introduced.

A Tale of Two Airlines

Iceland Express commenced operations on February 27, 2003. The carrier expanded steadily and flew to numerous destinations across Europe and North America. British carrier Astraeus (5W) operated flights using Boeing 737-300/500 and 700s and Boeing 757-200s.

Icelandic businessman Skuli Mogensen formed WW in November 2011. Speaking at the time of the takeover, Mogensen said, "We are extremely happy with the acquisition...Iceland Express has been a pioneering low-fares airline in Iceland and was the country’s most punctual airline this summer."

Mogensen added, "This acquisition will significantly boost Wow Air and ensure that we can continue to offer the lowest prices and excellent service. We will immediately be able to greatly increase our frequency to and from London and Copenhagen and also provide more capacity and new destinations next summer."

Sadly, rapid expansion led to growing financial difficulties for WW. The carrier announced it was to cease trading on March 28, 2019.

Featured image: An Iceland Express Boeing 737-700 operated by Astraeus.