Wow air is in desperate need of investment but has just lost another key investor.
Indigo Partners has canceled its investment, according to a statement on Wow air's website.
"The proposed investment of Indigo Partners LLC ("Indigo Partners") in Wow air has been canceled by Indigo Partners. Therefore, all negotiations between WOW air and Indigo Partners have been canceled," read the statement.
The ultra-low-cost carrier began to look for investors last fall, and it looked like Icelandair was going to join forces with Wow, but that deal stalled. Now, after the cancelation of the agreement with Indigo Partners, it appears the two airlines might come to a deal after all.
"Subsequently WOW air has started discussions with Icelandair Group. The parties aim to conclude the negotiations by Monday, March 25, 2019," the brief statement concluded.
Wow appears to have fallen victim to expansion plans that were too bold. After growing rapidly between 2015 and 2018, the carrier is now cutting routes and selling aircraft in order to keep its doors open.
The airline announced in December that it would be cutting routes and reducing its aircraft from 20 to 11 planes. The airline also planned to return four widebody Airbus 330s.
"After a challenging year, Wow air is now restructuring and simplifying its operations to return to its roots as a profitable ultra-low cost airline, while discussions with Indigo Partners progress," Wow said in a statement.
Wow is still selling tickets-and offering its signature low fares. However, travelers should be prepared in case the airline can't reach a deal with an investor and does end up going belly up.
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