Passengers are told to go looking for 'rescue fares' from rival airlines.
Iceland's low cost carrier Wow Air has canceled all flights and told passengers to book with other airlines.
The alert said people who wanted to travel should now look for"so-called rescue fares" which may now be offered by rival airlines. In November last year, it was announced that Icelandair Group, the holding company of rival carrier Icelandair, would acquire the entire share capital of Wow Air but that proposal fell apart within weeks.Founded by chief executive, Skuli Mogensen, Wow Air took off for the first time in 2012.
The company's model was to entice passengers with ultra-low prices before slapping on extra charges for seat selection, baggage, leg room and expensive refreshments. A typical base fare for a WOW flight from the U.S. to Europe could come in at less than $200.
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