Icelandair has announced the dissolution of the agreement to buy all the shares of Icelandic WOW Air to form a stronger competitor in the international market.
The airline has reported that the operation will not be carried out because it was “unlikely” that the terms of the agreement, which have not been made public, were fulfilled before the deadline, set for this Friday, November 30, according to Reuters.
The CEO of WOW Air, Skúli Mogensen, pointed out that “it was clear from the beginning that it was ambitious to complete all the conditions of the share purchase agreement in this period”.
The announcement of the purchase was made on November 5 and it was detailed that both airlines would continue to operate under different brands, accumulating a transatlantic market share of 3.8% between the two.
With the operation, both companies sought to be better prepared in the face of the strong competition in the aviation market. The failed merger comes months after the Icelandic low-cost airline Primera Air crashed in October.