Icelandair shareholders were due to ratify the €18 million takeover of its loss-making rival on Friday, but worries about debt and a warning yesterday that losses at WOW Air were worse than expected led to shareholders indicating they could not back the purchase.
Bogi Nils Bogason, Icelandair Group interim president and chief executive said: "The planned acquisition of Icelandair Group of WOW Air will not go through. The board of directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing.”
In a statement, WOW Air said “both parties” had agreed the deal could not go ahead.
