Two former directors of WOW air (WW, Reykjavik Keflavik), which ceased operations in March, plan to launch a new LCC this autumn, which has the working title WAB Air, or We Are Back. The airline will operate six aircraft to fly to fourteen destinations in Europe and the United States.

The plan, in which WOW founder and CEO Skúli Mogensen is reportedly not involved, envisages one million passengers during 2020, 500 employees to be hired in the first year of operations, and revenues close to ISK20 billion (USD159 million) next year. The group's intentions were outlined in a recent memorandum seen by the business journal Markaðurinn.

The private equity and venture capital firm Avianta Capital has committed ISK5 billion (USD39.7 million), according to the report, in return for a 75% stake in the startup. Avianta is owned by Aislinn Whittley-Ryan, daughter of Michael 'Kell' Ryan, one of the founders of Ryanair who died in December 2016.

The remaining 25% will be in the hands of Neo, a company owned by the two former WOW directors, named as Arnar Már Magnússon, who was its VP for flight operations, and Sveinn Ingi Steinþórsson, who was its director for financial planning and analysis.

Steinþórsson will be the new carrier's CEO, Magnússon its deputy CEO and director of operations. John Bavister, who manages Avianta Capital along with Simon Whittley-Ryan, will be finance director at the request of the Irish investment fund.

Neo is also co-owned by Bogi Guðmundsson, a lawyer and a board member of the Icelandic tour operator BusTravel, and aviation consultant Þóroddur Ari Þóroddsson.

Fréttablaðið reported that the group had contacted at least two banks in Iceland, Arion Bank and Landsbanki, requesting a one-year loan totalling EUR31 million (USD34.9 million) intended for use as equity to secure a loan from an unnamed Swiss bank. The startup is already in the process of applying for an Air Operator's Certificate (AOC).