Icelandair has decided to cancel its plan to acquire WOW Air, as the shareholders’ meeting pre-conditions were unlikely to be met.

“The planned acquisition of Icelandair Group of Wow air will not go through. The Board of Directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing. We want to thank WOW air‘s management for a good cooperation in the project during recent weeks . All our best wishes go out to the owners and staff of the Wow air. ” said Bogi Nils Bogason, CEO of Icelandair Group.

The news comes a bit less than one month after signing an agreement to purchase all shares in the airline WOW air. So, what does this mean for Wow Air?

According to Air analyst Vinamra Longrani, the troubled airline will do what it takes to overcome the crisis. The frequencies of the flights will be reduced and some roads removed.

Yet, the Icelandic low-cost carrier company today has little cash reserves.  The same day,  Indigo Partners which has stakes in several ultra low-cost carriers such as Chilean Chili’s JetSmart, Mexico’s Volaris and Europe’s Wizz Air, stepped in and reached a preliminary agreement to buy WOW Air.

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