Does anybody else see the potential problems of merging one financially challenged airline with another financially challenged ditto? The only reason for going via KEF when hopping across the pond, given the phalanx of direct options, is a lower price. At a price so low, one might argue, it's not possible to turn a profit?
Why do you talk about Icelandair as a financial challenged airline? Good cash reserves and lots of equity. Yes they discussed with a lender changed conditions for a bond, as cash flow and profits did not match projections and had to declare that because they operate on the stock exchange. They had also to re evaluate and lower the guidance for expected profits this year. That does not make Icelandair Group a financial challenged company. Perhaps they were even discussing the changed situation with the bond holder in regards to buying WOW.
Now Icelandair buys its main competitor, while he is still active and not bankrupt. The the deal is an stock exchange, so it does not touch the cash reserves of Icelandair.
The disappearance of Primera Air also gives Icelandair a boost, as they had been competing on the market for chartered holiday flights.