The venture will increase the two airlines’ combined share of the transatlantic market to nearly 4%, bosses have said.
Low-cost long-haul carrier Wow was founded in 2011 by Skuli Mogensen, who recently said he expected the airline to raise $200-$300 million though an IPO during the next 18 months.
Reuters valued the deal at around $18 million and both Bloomberg and the Financial Times at around $25 million, based on a $455 valuation of Icelandair.
The two airlines confirmed the proposed acquisition on Monday (November 5), subject to approval by shareholders and Iceland’s competition authority.
