About three months after Icelandic ultra-LCC WOW Air ceased operations, two former managers of the airline and an investment fund plan to establish a new LCC in the country, according to news reports.

Under the working name WAB—for “We Are Back”—the new airline will be established on the foundations of defunct WOW by Arnar Már Magnússon and Sveinn Ingi Steinþórsson, as well as Irish investment fund Avianta Capital, according to reports by Icelandic newspaper Frettabladid and Iceland Review magazine.

Plans reportedly call for six aircraft to be in operation beginning in the fall, with 14 destinations in Europe and North America. The company expects 1 million passengers in its first year with revenue of ISK20 billion ($157 million) and plans to hire 500 people.

Avianta Capital will invest ISK5 billion in the airline for a 75% stake, according to the reports. Discussions were held with Icelandic banks Arion Bank and Landsbankinn to secure ISK3.9 billion for Avianta as equity to secure a loan from a Swiss bank, Iceland Review said.

The investment fund is owned by Aislinn Whittley-Ryan, daughter of Michael Ryan, who joined Irish LCC Ryanair shortly after it was founded by his brother Tony Ryan.

The remaining 25% of the airline will be controlled by Neo, a company owned by the two former WOW managers and lawyer Bogi Guðmundsson, Iceland Review said.

Talks about the new airline began in early May and a final agreement was reached June 28, Frettabladid reported.

WOW Air ceased operations March 28 after failing to attract investors. WOW founder and former CEO Skúli Mogensen is reportedly not involved in the new airline.

Kurt Hofmann, hofmann.aviation@netway.at