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By October 24, 2012, Icelandic low-cost carrier WOW Air (WW) had taken over commercial responsibility for Iceland Express (HC) flight operations. The move brought two competing low-cost businesses under the WOW brand, with the airline saying it would honor tickets already sold by its rival.
In an October 24 report, Vísir said the deal had been struck the previous day for an undisclosed amount. Skúli Mogensen, WOW's principal owner, provided additional funding to complete the purchase.
WOW described the transaction as a takeover of operations. Iceland's Competition Authority subsequently reviewed it as a merger, recording that the combination took place in October 2012 and was allowed to proceed under an exemption while its review continued.
The immediate passenger consequence was a change of brand and responsibility for existing bookings. WOW said it expected no disruption for Iceland Express passengers, while announcing more flights to London and Copenhagen.
A Larger European Network
Contemporary reporting on the takeover's announced schedule described winter flights from Berlin, ski-season service from Salzburg, and Christmas flights from Warsaw and Kaunas. WOW also outlined a summer 2013 plan for four Airbus A320s and 15 European destinations. Those were the plans announced with the deal, rather than a record of services already operating in October 2012.
Iceland Express had begun flying from Keflavík to Copenhagen and London in early 2003. WOW entered operations in summer 2012. Before their combination, the two businesses competed on seven scheduled routes, including London and Copenhagen, according to the Competition Authority.
The Competition Review
On March 8, 2013, the authority announced that it would take no action against the merger. It acknowledged increased concentration on some routes but concluded the combination would not create or strengthen a dominant position or significantly harm competition. Icelandair's existing dominance in the market was central to that assessment.
The takeover gave WOW a larger operation within months of its launch. The airline continued for several years before ceasing operations on March 28, 2019.
The featured photograph shows an Iceland Express Boeing 737-700 operated by Astraeus in January 2010, before the takeover (photographer’s website). The photograph is available under CC BY-SA 3.0.
Featured image: An Iceland Express Boeing 737-700 operated by Astraeus.
File photo, January 2, 2010: Iceland Express Boeing 737-700 G-STRN, operated by Astraeus. Photo: Juergen Lehle (albspotter.eu)/CC BY-SA 3.0.
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