WOW Air: Rescue fares and guidance for passengers issued

WOW Air has ceased operation. All WOW Air flights have been cancelled.

Passengers are advised to check available flights with other airlines.

Some airlines may offer flights at a reduced rate, rescue fares, in light of the circumstances.

Information on those airlines will be published when it becomes available.

• Passengers whose ticket was paid with a credit card are advised to contact their credit card company to check whether a refund of the ticket cost will be issued.
• Passengers who bought their ticket from a European travel agent (within the European Economic Area) as a part of a package tour (a package which includes flights and accommodation or other services) are protected by the Package Travel Directive. Those passengers are advised to contact their travel agent to arrange an alternative flight.
• Passengers who may have bought travel protection, or those passengers whose credit card terms may include such protection, may be entitled to claim compensation and assistance due to delays or travel disruption. However, such compensation is often limited.

Information is available from the WOW Air website, Icelandic Transport Authority, Keflavik airport and other relevant airports.

Options available to customers due to travel with WOW will depend on what, and how, they booked.

• If you booked a package holiday, you should contact your Abta member travel company to discuss your options. If your flights are part of a package then you are better protected. It is the package organiser’s responsibility to make alternative arrangements free of charge, or if no suitable alternative is available, you will be offered a replacement holiday or a full refund for the price of the package holiday. If you are abroad, it should make arrangements to bring you home at the end of your trip.
• If you booked your flights directly with the airline, you will need to make alternative arrangements. If you paid for your flights with a credit or debit card, you should contact your card company to find out about recovering your money. You should also contact your travel insurance provider to see if your policy covers this circumstance.
• If your flight ticket was booked and issued by a travel agent, you should check your travel insurance to see if you’re covered, and also check with your travel agent as to whether they’ve provided scheduled airline failure cover.

• If you booked directly with WOW Air and paid by credit card, you may be protected under Section 75 of the Consumer Credit Act 1974 and should contact your card issuer for further information.
• Similarly, if you paid by debit or charge card, you should contact your card issuer for advice as you may be able to make a claim under their charge back rules.
• If you purchased travel insurance that may include cover for scheduled airline failure, known as SAFI, you should contact your insurer. If you did not book directly with WOW Air and purchased your tickets through an intermediary, you should contact your booking or travel agent in the first instance.
• Passengers who booked directly with the company via either a credit, charge or debit card may alternatively be able to make a claim against their card provider. Some card providers will ask for a negative response letter confirming the position. Passengers may also be able to make a claim against their travel insurer.

The CAA will publish a negative response letter shortly.

Consumer watchdog Which? claims WOW was continuing to sell fares at 7am on Thursday, two hours before the airline ceased operations.

“Passengers will quite rightly be appalled WOW Air was still selling tickets right up to the moment it collapsed knowing full well that any tickets sold would likely not be worth the paper they are printed on.

“You will need to check if you booked your flights as part of a package as this will mean you are Atol protected and will be entitled to your money back.

“If not, you may still be able to claim through your travel insurance or card issuer but it will depend on your circumstances. You can visit which.co.uk for more advice on your rights.”

WOW's collapse comes just days after fresh discussions over the airline’s future got under way on Tuesday (March 26), the best part of five months after initial talks over a potential sale of WOW became public.

Last November, Icelandair announced it had agreed to acquire the low-cost carrier for a reported €18 million, only to pull out of the deal a fortnight later.

US investor Indigo Group came in for WOW after Icelandair walked away. However, WOW confirmed last week talks with Indigo had broken down, and that it had resumed discussions with Icelandair.

Talks between the two Icelandic carriers reopened last Wednesday (March 20) but Icelandair confirmed on Sunday (March 24) it had decided not to invest.

WOW proceeded to consult bondholders over a voluntary restructure, including the prospect of converting existing debt into equity, a move which took a major step forward on Tuesday (March 26).

“Bondholders have formally approved to convert their bonds into equity, and formal discussions with investors have commenced to fund the company,” said the airline in a statement.

“This is an important milestone in financially restructuring the company and secure the long-term sustainability of WOW Air.”

Two days later, the airline announced it had cancelled all flights and ceased operations.

WOW Air flies from Gatwick, Stansted and Edinburgh to Iceland and serves North America and continental Europe.

Its operations are built around Reykjavik’s emergence as a transfer hub, but incurred heavy losses in the year to June 2018 as it sought to expand its operations.