Icelandair Buys Budget Carrier WOW Air

Icelandair, on Monday, announced that it intends to buy budget airline and major competitor, WOW Air, boosting Icelandair as the biggest transatlantic carrier for the region.

The deal, worth about $18 million according to Reuters, will preserve both brands as Icelandair said it intends to continue to operate them separately. WOW Air has made its name by offering European flights from the U.S. for as little as $55 each way, including flights from Los Angeles, San Francisco, and Pittsburgh.

“WOW air has, in recent years, built a strong brand and enjoyed great success in the company‘s markets to and from Iceland and across the Atlantic,” Bogi Nils Bogason, interim president and CEO of Icelandair Group, said in a statement.

“There are many opportunities for synergies with the two companies, but they will continue to operate under their own brands and operating approvals.”