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Icelandic low-cost carrier Wow Air has ceased operations just days after announcing it had reached an equity agreement with bondholders.
An alert on the troubled airline’s website says all flights are cancelled and advises passengers who need to travel to book with other carriers.
The carrier operated flights from Stansted, Gatwick, Edinburgh and Dublin to Iceland, with connections across the Atlantic from Keflavik.
Passengers affected by the cancellations who paid by credit card are advised to contact their provider to find out if a refund is possible. Otherwise, those who booked through an agent or TMC are protected and can contact their agent to book a different flight.
They may also be entitled to compensation from Wow Air under EU261 rules, but if the airline goes bankrupt passengers will have to file a claim with the appointed administrator.
European low-cost carrier Wizz Air is offering special 'rescue fares' on flights between Reykjavik and Stansted or Gatwick until 7 April for passengers left stranded by Wow Air's collapse.
Wow Air had announced earlier this week that bondholders had agreed to turn their bonds into equity for the carrier, but it has been unable to reach a deal with investors for a cash injection to keep it in operation.
Icelandair had twice shown interest in acquiring Wow Air, with investor Indigo Partners holding extensive talks while the airline underwent a restructuring programme. However, both discussions broke down when it become apparent the carrier couldn’t meet the terms of any deals.
Wow Air’s struggle comes after several airlines have gone bust in recent years, most notably the sudden collapse of Monarch in October 2017.
October 2018 saw the demise of Cobalt and Primera, while Germania and Flybmi both went into administration this February.