Skúli Mogensen, the founder and CEO of bankrupt WOW air (Reykjavik Keflavik), is already eyeing a new project which would operate with a business model nearly identical to the previous carrier, Fréttablaðið has reported.
According to an investor presentation seen by the Icelandic newspaper, Mogensen and other key WOW air staff would hold a combined 51% stake in the new carrier, with the remainder of shares distributed to external investors. The founders seek USD40 million in initial funding from third-party investors to cover the expenses for the first six months of operations. Mogensen would become the new airline's CEO.
Initially, the airline plans to operate four A321-200neo and a single A320-200neo. According to the plan, if funding is secured immediately, the airline would be able to launch this quarter already. At first, it would then focus on ACMI and charter operations for other carriers before launching own scheduled flights in June 2019.
The new airline would operate a network much alike WOW air's with flights to thirteen destinations in Europe and the United States from Reykjavik Keflavik. It would target both the incoming tourism market to Iceland, as well as passengers seeking low fares on transatlantic services.
Mogensen and his partners hope to be able to launch relatively quickly as they plan to acquire most of the assets of WOW air, including the brand. Formally, however, it would be a new company with a new Air Operator's Certificate (AOC).
The Icelandic entrepreneur underlined in the presentation that he and his team learned their lesson from the collapse of WOW air. Mogensen earlier blamed the bankruptcy on the ill-fated decision to add widebody A330-300s and insufficient cost control.
At the time of its bankruptcy on March 28, WOW air operated one A320neo, eight A321-200s, and two A321neo. According to the ch-aviation fleets module, the aircraft have not yet been redelivered to other airlines and remain stored mostly at the destinations of their final flights, with the exception of the A320neo owned by Air Lease Corporation, which is stored at Ljubljana. Two A321-200s owned by Air Lease Corporation have already been earmarked for Condor and Thomas Cook Airlines UK, respectively, but are yet to be delivered to the new operators.
