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Icelandair has purchased all shares in WOW Air, eliminating the competition between the two airlines that have brought prices down for consumers looking to fly to Iceland. The companies will continue to operate under separate brands. The deal is worth nearly $18 million and buy-out is still subject to board approval, but the process should only take around three weeks. Icelandair will now control 3.8 of the transatlantic market. This isn't the best news for consumers who were benefiting from the competition between the low-cost barebones WOW flights and Icelandair. Icelandair consistently lowered prices in order to entice travelers away from the $99 WOW flights.
There is some good news for travelers, though. The service aboard WOW will definitely improve with investments from Icelandair into the planes, staff, and services. [CNT]
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