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Iceland’s WOW air ceases operations, leaving passengers stranded
Iceland’s WOW air became the latest budget airline casualty on Thursday, halting operations and cancelling all future flights after efforts to raise more funds failed.
WOW, which focused on low-cost travel across the Atlantic, advised stranded travellers to seek flights with other airlines. It flew a total of 3.5 million passengers last year.
“This is probably the hardest thing I have ever done but the reality is that we have run out of time and have unfortunately not been able to secure the funding of the company,” WOW CEO and founder Skuli Mogensen wrote in a letter to the company’s 1,000 employees.
“I will never be able to forgive myself for not taking action sooner,” he added.
WOW had earlier postponed flights on Thursday as it entered what it had hoped were the final stages of an equity raising with a group of investors.
The airline grounded at least six planes in North America that were set to leave late Wednesday from Montreal, Toronto, Boston, Detroit, New York and Baltimore.
“My flight from Boston has been cancelled. Having a hard time getting through to anyone on the phone. Can you help me at all?” Twitter user Marc Solari wrote.
WOW replied with an apology and offer of further assistance.
WOW is the latest budget airline to collapse as the European airline sector grapples with overcapacity and high fuel costs. Recent failures include Britain’s Flybmi, Nordic budget airline Primera Air and Cypriot counterpart Cobalt.
‘RESCUE FARES’
Other airlines including, Icelandair, Easyjet and Norwegian stepped in offering discounted ‘rescue fares’ to stranded passengers, according to the Icelandic Transport Authority WOW has been pursuing different avenues to raise money over the past few months.
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