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Wow airline collapses after funding talks fail

by LLB Reporter
28th Mar 19 10:39 am

Iceland’s Wow airline has collapsed all flights have been cancelled leaving thousands of passengers stranded. the airline collasped after failing to secure a cash lifeline.

All aircraft were grounded on Thursday after months of talks with prospective financial backers failed, customers have been told to find alternative airlines.

Wow Air said in a statement, “Wow Air has ceased operation. All Wow Air flights have been cancelled.

“Passengers are advised to check available flights with other airlines.

“Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances.”

Wow added, “Passengers may also be entitled to compensation from Wow Air, including in accordance with European regulation on Air Passenger Rights.

“In case of a bankruptcy, claims should be filed to the administrator/liquidator.”

Coby Benson, flight delay compensation Solicitor at Bott and Co said to LondonLovesBusiness, “With news of budget airline Wow Air going into administration, we urge passengers to explore alternative flight and refund options.

“Compensation under EU Regulation 261/2004 is unlikely to be granted however, many may not be aware that if they have paid for their flights with a credit card, they may be able to recover their money, in full, under the Consumer Credit Act using Section 75.

“For flights which cost less than £100 or were paid for using a debit card, the Visa/MasterCard/Amex ‘chargeback’ system can be used to recover the money paid. Anyone with flights as part of a package holiday are advised to contact the travel firm they booked with and to check if their holiday was ATOL protected. Their travel firm will be responsible for arranging alternative flights or providing a full refund”

Wow Air customers who are currently in the process of claiming compensation for a flight delay or cancellation are unlikely to receive it, but we will continue to monitor the situation and will keep all our clients updated.”

On Tuesday Wow said bondholders had approved the plan to convert bonds into equity, this allowed negotiations to start with a group of investors.

Wow said some airline could offer flights at a reduced price.

Air Berlin, Monarch Airlines, Primera Air and flybmi have all collapsed in recent years.

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