Iceland reels after Wow Air demise
The recent collapse of Wow Air has had a devastating effect on Iceland’s economy, reports Bloomberg. On Wednesday, the central bank cut its main interest rate by 50 basis points, to 4%, and outlined a sharp fall in its predictions for GDP growth — forecasting it to contract by 0.4% this year instead of growing 1.8%. The demise of Wow Air has hit Iceland’s previously booming tourism industry hard, and follows a series of budget airline collapses in Europe.
Aircraft Sales & Marketing | Aviation Consultant
I'll just throw a couple of names out there: Alitalia, Air France, Tarom, Malev, Estonian Airways, Olympic, etc... If an airline disappears because it is inefficient or has a sub-perfect business model.. it happens. If WOW didn't exist in the first place, Iceland wouldn't be negatively impacted by it now. In other words it only created a bubble which now burst. I'm strongly against government intervention, unless there is a strong need for it.