Thousands stranded after low-cost airline goes bust

As from today, Thursday morning Reykjavik based budget airline WOW has ceased operations leaving thousands of passengers stranded.

At 9.15am CET the Icelandic airline released a statement saying: “Wow Air has ceased operation. All 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. Information on those airlines will be published, when it becomes available.

“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.

“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.

“In case of a bankruptcy, claims should be filed to the administrator/liquidator.”

WOW has been in financial trouble for some time and was hoping to be bailed out by Iceland Air. However, following a breakdown in negotiations WOW has now gone into liquidation.