Wow Air has shut down. Here's what went wrong, according to the company's CEO

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Wow Air CEO Skuli Mogensen told Business Insider in January that the airline made several bad decisions in recent years that did a lot of harm.

According to Mogensen, much of the airline's problems stemmed from the addition of wide-body Airbus A330-300 jetliners to its fleet.

"One of the mistakes that I made, that Wow made in the last 18 months, was that we were moving away from the low-cost model," Mogensen said in the interview."Most significantly we made our fleet structure unnecessarily complex with the addition of the wide-body A330 to our fleet."Wow Air launched with a fleet made up of narrow-body Airbus A320-family jets with 174 to 220 seats.

"One of the core essences of the successful low-cost model is to ensure that you maintain a simple and coherent fleet structure because it will very quickly complicate the operations and therefore the costs if you have multiple fleet types," Mogensen said. The presence of the A330s not only increased the airline's operating costs but also put pressure on Wow to fill the extra 120 or so seats for each flight. This hurt the airline's yields, Mogensen said.The Wow Air boss also said his company had strayed from the no-frills, low-cost business model it became known for and behaved more like a traditional airline.

"The second mistake we made and was in part because of the A330 was that we started behaving like a legacy carrier in the sense that we added a premium cabin," he said."And again complicating our message, complicating our service delivery, complicating the marketing, and we are going back to our roots as a pure low-cost carrier."

 

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Wow Air just went bust in yet another blow to the struggling budget airline industryThe 7-year-old Icelandic carrier, known for its bright purple planes and rock-bottom ticket prices, had been struggling with debt. Wow. Shame. Such a strong potential challenger to capture a lot of the 1 Stop transatlantic traffic. What they really needed was a partner both sides of the Atlantic to pick up inbound traffic, this way they could fill planes both ways and offer connecting services. RIPWOW
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