It seems the saga of WOW Air continues, with the airline announcing it is to further trim its Airbus narrow body fleet, with four Airbus A321 aircraft to leave the fleet and find new homes with Air Canada.
WOW Air Airbus A321
According to the airline, they have signed a sale and purchase agreement to sell Air Canada four Airbus A321 aircraft that WOW air has had on finance lease since 2014.
The transaction will improve liquidity to the airline which will deliver what they describe as “more that US$12 million”.
The airline notes the sale is a part of WOW air ongoing restructuring and to ensure the maximum utilization of its remaining fleet.
Snip, snip, snip
WOW Air has already made changes to its UK operation for 2019, with the airline to abandon Gatwick Airport, and switch to Stansted Airport to conduct operations from the 31st March. However, the WOW Air networks are being trimmed, with North American destinations vanishing.
In addition, with four other aircraft gone back to lessors and 111 less staff needed, it seems that the airline is switching to a leased-only fleet – whilst it continues to attract the attention of Indigo Partners and how it can survive.
However, the shrink’till’profitable strategy does have issues – and in airline terms, it can be deadly if you cut the wrong route or wrong plane that was flying a few weeks earlier.
WOW Air continues to be one to watch as its survival isn’t guaranteed right now…
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I better hurry up and fly both of these airlines before they go under and the opportunity is lost.
It’s interesting times with all these Transatlantic low cost carriers. I’ve been thinking there has been too much capacity over the Atlantic for some time – and with high fuel prices… the weaker airlines that are flying by the seat of their pants are coming out.
Book – but have a backup plan!