Icelandic low-cost airline Wow Air, which suffered a difficult 2018 with mass layoffs and collapsed buyout discussions with Icelandair, is now approaching a takeover from the American investment company Indigo Partners.

This is reported by the Icelandic Frettabladid, citing sources.

Initially, Indigo Partners, which already owns shares in several low-cost airlines, is expected to purchase 49 percent of the company with an option to expand later.

The deal is expected to be announced on Thursday.

Indigo's takeover was made possible by Wow canceling a lease agreement with Irish aviation group Avalon for a 12-year contract for four Airbus A330s, according to the sources.

Wow Air emerged a few years ago as a challenger to Norwegian with low-cost flights between Europe and the US. Among other things, routes were opened to San Francisco and Los Angeles, routes that have now been closed.

Source: Nyhetsbyrån Direkt