Icelandic low-cost airline Wow Air is restructuring and simplifying its operations as the company's discussions with venture capital firm Indigo Partners progress.

The measures mean that 111 employees will be allowed to leave the company.

Wow Air is cutting costs and shrinking its fleet from 20 to eleven planes. The company is in discussions to return some of its leased planes while four have been sold, which will improve the company's liquidity by just over $10 million, according to a press release.

As a consequence of the downsizing, the workforce will also be reduced and 111 people will be laid off.

"This is the most difficult day in Wow Air's history. We have dedicated people who have worked hard to make Wow Air a reality and it breaks my heart to downsize the company. However, to secure our future and preserve Wow Air in the long term, we unfortunately have to take drastic measures," says Skuli Mogensen, CEO and founder of Wow Air, in a press release.

At the same time, Wow Air announced that discussions with Indigo Air, which signed a preliminary agreement to invest in Wow Air at the end of November, are progressing.

Source: di.se