Indigo Partners has cancelled its proposed investment in Icelandic low-cost carrier Wow Air, prompting the airline to resume talks with Icelandair Group.
Wow Air says it aims to conclude talks with Icelandair Group by 25 March.
“The discussions will take place in cooperation with the Icelandic authorities,” says Icelandair Group, echoing the 25 March timeline. “The discussions will be based on the doctrine of competition law regarding the failing firm defence.”
It is not immediately clear why Indigo cancelled the proposed investment. Indigo was prepared to increase its planned investment in Wow Air to $90 million, up from $75 million previously. Indigo did not immediately respond to requests for comment.
Icelandair Group had in November 2018 announced plans to take over Wow Air but abandoned that plan later that month, after several pre-conditions were not met in time before a shareholders meeting on the proposed takeover.
A tentative deal was then reached by Wow Air with Indigo, but the deal failed to be finalised before a 28 February deadline, which was subsequently extended to 29 March.