Icelandair is buying out competitor WOW air

Icelandair, Iceland's flagship air carrier, has announced that it will buy its fellow Icelandic rival airline, WOW air.

WOW air is a low-cost carrier that is headquartered in Reykjavík and based at Keflavík International Airport, and operates routes between Europe, Iceland, and North America. 

A stronger competitor

According to The New York Times, Icelandair has agreed to buy WOW air for roughly 18 million, in order to create a stronger, unified competitor in the international market.

Currently, WOW air and Icelandair both offer unique stopover programs, which allow travellers to break up long-haul travel for up to 72 hours at no additional cost. For many, it means seeing two destinations for the price of one.

With aviation fuel prices continuing to rise, many low-cost carriers ultimately fail. By consolidating and combining forces with its major competitor, Icelandair will now dominate the market for travel to and from Iceland.

Both airlines will continue to operate under separate names, out of the Keflavik Airport.