Global Expansion ‘Fatal’, Says Boss of Collapsed Wow Air

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The chief executive of Iceland’s low-cost Wow Air, which collapsed on Thursday, has said his “fatal” mistake was trying to turn the airline into a global business, the Financial Times reported. Speaking to the Financial Times, Skuli Mogensen said Wow, which offered cheap flights between Europe and the US via Iceland, had started off with narrow-body planes, but “we wanted to use Iceland as a global hub connecting three continents” so the airline ordered expensive wide-bodied jets, which can fly further, in late 2016. Wow briefly flew a route between India and Iceland. As oil prices increased in 2018, however, “it was clear that we needed to change course fast,” he said. “In retrospect the wide-body decision unfortunately turned out to be fatal.” For most of 2018, jet fuel cost between $80 and $90 and came close to $100 in early October. In late March, it was $80.55, while two years earlier it had been as low as $50. Read more