Why Did WOW Air Fail?

Yesterday WOW Air finally collapsed. The Iceland-based airline was founded in 2011, and their business model has been based around connecting people between North America and Europe via their hub in Keflavik, Iceland.

In many ways this is similar to Icelandair. Iceland is a geographically advantageous stopover point, so they could offer one-stop service between lots of cities at attractive prices. WOW Air was an ultra low cost carrier, meaning they charged for just about everything.

Perhaps the intriguing icing on the cake is that both Icelandair and WOW Air offered free stopovers in Iceland when booking roundtrip tickets, which was a unique opportunity for people to visit a country that’s increasingly on peoples’ bucket list.