Budget Airline Serving Newark Airport Folds, Passengers Stranded

NEWARK, NJ — WOW Air passengers planning to fly out of Newark Liberty International Airport on Thursday, March 28 got a nasty surprise when the Icelandic company abruptly ceased operations, leaving them stranded in Essex County.

WOW Air had one arrival from Reykjavik scheduled for 6 p.m. Thursday, followed by a departure to Reykjavik at 7:05 p.m., NJ.com reported.

It’s the second time in a year that an international budget airline has suddenly gone belly-up at Newark Airport, leaving customers in the lurch. Danish airline Primera Air suspended its service at Newark Airport in October 2018 after declaring bankruptcy.

• See related article: Budget Airline Goes Bankrupt, Cancels Newark Airport Flights

Port Authority officials issued the following advisory on Thursday morning:

“#WOW Air has ceased operations at #EWR. Please visit https://wowair.com/travel-aler... for further information.”

The news hit hard for some. “Unreal,” one person deadpanned online.

Port authority officials issued a message for “stranded” passengers an hour later:

“@Icelandair is offering stranded WOW air passengers discounted economy fares from select destinations. For more details, visit https://bddy.me/2TI14IK”

According to a statement from WOW Air, all of its flights have been canceled.

“Passengers are advised to check available flights with other airlines,” WOW Air stated. “Some airlines may offer flights at a reduced rate, so-called rescue fares, in light of the circumstances.”

The bankrupt airline offered the following suggestions about the “rights” of affected ticket holders:

• “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.”
• “Passengers may also be entitled to compensation from WOW AIR, including in accordance with European regulation on Air Passenger Rights. In case of a bankruptcy, claims should be filed to the administrator / liquidator.”

WOW Air was founded by Skuli Mogensen and began operations in 2012. It focused on providing cheap flights between North America and Europe and flew to cities including Newark, Washington D.C, New York, Paris, London and Reykjavik.

The Iceland-based airline was known for its bright purple planes and ultra-low fares. Thousands of people might now need those fares. According to Iceland Review, between 2,700 and 4,000 passengers could be stranded in all. Moreover, The Associated Press reported at least half a dozen planes were grounded in North America that were scheduled to depart Wednesday night from Montreal, Toronto, Boston, Detroit, New York and Baltimore.

In Europe, flights from seven cities — Amsterdam, Dublin, Paris, Brussels, Berlin, Frankfurt and Copenhagen — did not take off Thursday morning.

Wow Air's bankruptcy comes after half a year of talks to sell the company. Icelandair and Indigo Partners were both in the discussions, according to AP. The holding company of Icelandair agreed in November to acquire the entire share capital of Wow Air, according to CNBC. That proposal collapsed shortly thereafter and further discussion ended Sunday.

More than 1,000 people worked for the carrier last year and about 3.5 million passengers flew on the airline's 11 planes.

"I will never forgive myself for not acting sooner," Mogensen told employees in a letter Thursday. "WOW was clearly an incredible airline and we were on the path to do amazing things again."

At least two airlines have agreed to offer so-called rescue fares for stranded travelers, Hungarian airline Wizz Air and Icelandair.

Customers can click here to access the fares.

Icelandair said it has set up discounted economy fares for stranded passengers traveling to, from, or through Iceland.

"These fares will only be available for passengers who have already embarked on their journey, and have a return ticket with WOW air between 28 March and 11 April 2019. The fares are subject to availability."

Discounted Icelandair tickets will be $60 to and from Europe, $100 to and from North America, and $160 for transatlantic flights. Those prices do not include taxes or fees.

• See related article: Wow Air Ceases Operations, Stranding Passengers In U.S., Europe

This article contains additional reporting by Daniel Hampton, Patch national staff

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