Last month, WOW air announced a restructuring plan aimed at returning the airline to its ultra-low-cost roots. The company said it will simplify operations and focus on becoming profitable again while discussions continue with Indigo Partners.
As part of the plan, WOW air will cut its fleet from 20 aircraft to 11. The Airbus A330s will be returned to lessors, and four A321s will be sold in a transaction expected to improve the carrier’s liquidity by more than 10 million USD.
New flight schedules are due to take effect in January. Recently added services to Delhi (DEL) and Los Angeles (LAX) have been discontinued as the airline refocuses its route network.
The restructuring has led to job reductions. About 111 full-time employees have been laid off, and contracts with short-term staff and contractors will not be renewed for the time being.
CEO and founder Skúli Mogensen described the cuts as especially painful: “This is the most difficult day in the history of WOW air. We have dedicated people who have worked hard to make WOW air a reality and it breaks my heart to downsize the company. However, in order to ensure our future and preserve WOW air in the long run, we unfortunately must take these drastic measures.”
The carrier has already scaled back routes in recent months, and earlier plans for Icelandair to acquire WOW air were abandoned.