Wow Air Cancels All Flights: Refund Process For Credit Card, Travel Agency Explained

Iceland's Wow Air stopped all flights and stranded thousands of passengers. In an update to its website, Wow Air said it has ceased all operations and advised distressed passengers to book with other airlines to carry on with their travel plans.

The collapsed airline has been operating flights from London Stansted and Gatwick in the U.K. Wow Air flew both short and long routes. In Europe, it flew to destinations such as Copenhagen and Spain’s Alicante and in the U.S flights serviced Washington and Boston.

Of late, the airline was looking for fund infusion and was talking to investors. There were speculations that Iceland Air Group, the parent company of competitor Icelandair may take a major stake in Wow Air. But that did not work out and talks ended on Sunday.

Advisory to passengers

In the advisory to passengers, the carrier said it is likely that other airlines may step in to help out the passengers with alternate flights at a reduced rate popularly known as “rescue fares.”

Wow assured that it would try to publish such information as and when it is ready.

The website also advised passengers on the options for a refund of the money they have spent on booking tickets with Wow Air. Passengers can get back their money from the channels they have used in booking their tickets. It may be via credit card or European travel agents.

Section 75 of the Consumer Credit Act stipulates that credit-card providers bear a joint responsibility to any failed transaction of a customer and must offer a payback.

The website also counseled that passenger may get some compensation from Wow.

“In accordance with European regulation on Air Passenger Rights, or in case of a bankruptcy, claims can be moved via the administrator or liquidator," the airline updated.

Founded in 2011 by chief executive Skuli Mogensen, Wow Air started flights in 2012. It employed 1,000 people and flew 3.5 million passengers in 2018 in its 11 aircraft.

The business model of low fares and extra charges

The carrier's business model was rock bottom prices and charging passengers additional charges for baggage, seat selection, leg room, and refreshments.

The Wow Air's base fare between the U.S. and Europe was less than $200. However, the falling number of tourists to Iceland and soaring fuel costs dented the airline’s profitability. Adding to the distress was poor customer reviews attacking recurring delays.

Travel expert’s advice

Meanwhile, Travel industry expert Simon Calder advised passengers not to spend big money on alternative flights unless they are in a real hurry.

He exuded the optimism that other airlines may step in and offer assistance to the distressed passengers. Calder said he expected Wizz Air, Easyjet and Norwegian airlines to support the stranded passengers.