WOW Air has cancelled all flights today as the budget airline announced its collapse. The airline has been battling with obligations after an endeavor to rescue it failed to work out. The declaration comes following seven days of travel chaos for WOW Air travelers as various flights were cancelled and postponed before in the week. The carrier previously said it was in the final stages of completing an agreement over raising new funds with a group of investors. Affected WOW passengers have all been informed and are being urged to re-book with other airlines.
What has happened to WOW Air?
WOW Air said in a statement today: “WOW Air has ceased operation. All WOW Air flights have been cancelled.
“Passengers are advised to check available flights with other airlines.
“Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances.”
What are the rights of WOW travelers?
“Passengers whose ticket was paid with a credit card are advised to contact their credit card company to check whether a refund of the ticket cost will be issued,” explains the WOW website.
“Passengers who bought their ticket from a European travel agent (within the European Economic Area) as a part of a package tour (a package which includes flights and accommodation or other services) are protected by the Package Travel Directive. Those passengers are advised to contact their travel agent to arrange an alternative flight.
“Passengers who may have bought travel protection, or those passengers whose credit card terms may include such protection, may be entitled to claim compensation and assistance due to delays or travel disruption. However, such compensation is often limited.
“Passengers may also be entitled to compensation from WOW AIR, including in accordance with European regulation on Air Passenger Rights. In case of a bankruptcy, claims should be filed to the administrator/liquidator.”
For what reason did the airline go bust?
Rising oil costs in the aggressive part have brought about a several budget carriers being forced to cease operations, including Monarch Airlines, Primera Air, Flybmi and Air Berlin.
A week ago a US venture assemble finished talks in regards rescuing budget airline WOW Air.
Dialog of a takeover by Wow Air’s adversary, Icelandair continued on Wednesday. The Icelandair Group declared at the time:“The discussions will be based on the doctrine of competition law regarding the failing firm defence.”
The “failing firm defence” is a lawful term which means that, if the deal doesn’t happen, the flimsier party is probably going to quit exchanging, reported The Independent.
Be that as it may, on Sunday, Icelandair repudiated its inclusion in sparing WOW Air. It said: “Icelandair Group has decided that its possible involvement in WOW Air’s operations, as announced on 20 March 2019, will not materialise.
“Therefore, all discussions between the parties have ended.” WOW Air flights began to be cancelled soon afterwards.
A WOW air spokesperson told Express.co.uk on Tuesday: “A majority of WOW air Bond Holders and other creditors of WOW air are in advance discussions with the aim of reaching an agreement on a voluntary restructuring including an agreement of converting current debt into equity and fund the company towards long term sustainability.”
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