Talks between Icelandic LCC WOW Air and prospective investors Indigo Partners are still ongoing, with a date toward the end of March now being given as the likely time for a deal agreement.

Indigo Partners, the US-based private equity firm, appeared in November 2018 as a potential investor in WOW Air, after an acquisition bid by fellow-Icelandic carrier Icelandair Group fell through.

WOW Air had increasingly branched out into the long-haul, low-cost marketplace but has retrenched in recent weeks, selling several aircraft and disposing of its long-haul Airbus A330s. It described 2018 as “a challenging year” and said it was “restructuring and simplifying its operations to return to its roots as a profitable ultra-low-cost airline.”

Indigo, which has major investments in three other LCCs in the US Mexico and Hungary, is seeking to take an initial 49% stake in WOW Air, with the possibility of a later increase in investment.

In a statement on the negotiations, WOW Air said: “While the parties have not reached an agreement, Indigo Partners and WOW Air continue to work in good faith to negotiate terms while working toward closing an investment by March 29th ... A new written procedure will be submitted to the bond holders in the coming days. No further comments will be made at this time.”

Alan Dron