• Retirement Lifestyle
  • News
  • Entertainment
  • Medicare
Bolpfinance How The Collapse Of Wow Air Has Left Thousands Stranded In Iceland
0Shares
0 0 0 0 0
Bolpfinance
  • Retirement Lifestyle
  • News
  • Entertainment
  • Medicare
News

How The Collapse Of Wow Air Has Left Thousands Stranded In Iceland

Sam Johnson Apr 02, 2019
0Shares
0 0 0 0 0

It is not uncommon for companies to go bankrupt all of a sudden, especially airline companies that often fail to match up with the competition and are forced to cease operations. But the way Wow Airlines from Iceland shut down their company on the 28th of March 2019 was unbelievable, mainly because it came without any prior notice and they didn’t even inform more than 10,000 people who were traveling or were scheduled to travel via their airlines. Here is what we know so far.

The Birth Of Wow Air

Markus Mainka / Shutterstock

Based in Keflavik Airport, Wow Air had its headquarters in Reykjavik. It was founded in 2011 and was slated to be an extremely low-cost airline. The company was founded by Icelandic entrepreneur and investor, Skuli Mogensen who is the owner of an Investment firm named Titan which happens to own the majority of the shares in Wow Air. He also co-founded Oz Communication, which was eventually acquired by Nokia, when he was just a student. Born to parents who were orthopedist and financial director of the city of Reykjavik, Skuli took a keen interest in business and his various ventures prove just that.

Wow Air operated its first ever flight in 2012, and they offered flights between Europe, Asia, and North America. They even acquired another low-cost carrier Iceland Express’s operation and network. This airline used to operate with leased equipment. Soon, Wow Air’s customer base saw a surge and they flew their one-millionth passenger in 2014. They saw huge growth in their business and their annual passenger capacity became 1.6 million in 2016.

Financial Woes And Problems

Markus Mainka / Shutterstock

Problems surfaced back in 2018 when the company tried hard so that they could merge with other companies. Talks were on about another low-cost carrier Icelandair and Indigo Partners, but none of them worked. Icelandair said the pre-conditions proposed by their shareholders were not met, while Indigo Partners canceled due to some technical failure. It was unfortunate that despite being the Businessman Of The Year in Iceland twice in 2011 and 2016, Skuli Mogensen failed to stop the bankruptcy that was brewing.

The Bankruptcy That Stranded Thousands

Markus Mainka / Shutterstock

Even before shutting down the company, Wow Air was forced to bring down their employee number from 1000 to 360. On March 28, they finally ceased operations, and Skuli Mogensen sent an apology letter to his employees regretting not taking proper steps before. However, their decision affected a huge number of travelers who were to fly with them on that day or afterward. The company requested them to buy tickets from other airlines and customers couldn’t even reach them through their customer care number. Most customers were enraged to see the amount of dishonesty on the owner’s part. Even the employees had to deal with angry customers all night, thanks to the insensitive and sudden decision taken by the head of the company.

What Are The Stranded Passengers Saying?

06photo / Shutterstock

An estimate of over 10,000 people has been stranded due to the stunt pulled by Wow air. Icelandair had been offering some special discount for Wow Air passengers, but since all were scrambling to purchase tickets, many who tried to get hold of the discount were forwarded to an automated call service that asked them to go back to the original website to get tickets. Austin Graff, one of the stranded passengers, couldn’t even get hold of a real person when he arrived at the airport, looking to talk to officials of Icelandair. Over 5000 tourists are stranded in the country just like him. The main woe is that though Iceland is beautiful, the cost of staying one extra day can be heavy on the pocket. It is surprising to see Wow Air get away without taking any responsibility at all. Though customers are being asked to share their booking information via private messages, there is no doubt that the whole chaotic situation would take months to get resolved. And the worst part is, most customers won’t probably get a refund.

Those who had booked their flights via Hopper will thankfully get back their money, but chances are bleak for others. Another European low-cost carrier Primera Air went out of business a few months back, leaving thousands of people stranded. Maybe it is time for officials to think of effective measures to properly deal with customers who are left high and dry after such shutdowns. Getting a refund is the least that customers can get, notwithstanding the amount of harassment and the loss of time and money they face due to unforseen events such as this whole debacle with Wow Air.

Share This
0Shares
0 0 0 0 0
Previous Article
These Examples Prove That China Is Rapidly Progressing In Science And Technology
Next Article
Here Are Three of The Most Mind-Blowing Discoveries That Happened Recently
Comments (0)

Leave a Reply Cancel reply

You must be logged in to post a comment.

Related News

Why Does Australia Use Wind Energy To Drive Green Progress
News
Why Does Australia Use Wind Energy?
Helen Hayward Dec 20, 2024
Boeing strike
News
How the Boeing Strike Can Massively Impact Jobs & U.S. Economy
Sven Kramer Nov 28, 2024
Japan moon landing milestone faces hurdle with solar power failure.
News
Japan Moon Landing Milestone Faces Hurdle With Solar Power Failure
Wyatt Knox Nov 02, 2024
Kate Middleton's recovery
News
Kate Middleton Makes First Public Outing After Chemotherapy
Sven Kramer Oct 04, 2024
Bolpfinance
  • Privacy Policy
  • About Us
  • Contact Us
  • Home
  • Terms Of Use

Copyright Bolpfinance. All RIGHTS RESERVED.

  • Lost Password Back ⟶
  • Login
  • Register
Lost Password?
Registration is disabled.