The Icelandic airline Icelandair has reached an agreement to take over its   
   rival Wow Air. The two Icelandic companies will continue to operate as   
   separate brands, according to the Icelandair Group.   
       
   Both Icelandair and Wow Air sell cheap flights from Europe to North America   
   with transfer in the Icelandic capital Reykjavik. That airport is mainly used   
   by the two price breakers. On the whole transatlantic market, however, they   
   only have a combined market share of around 3.8 percent.   
       
   Icelandair had to confess last week that it had violated one of its debt   
   covenants and had to ask bondholders to temporarily turn a blind eye. The much   
   younger Wow Air is also in awkward papers. It has been losing money for   
   several years and sought a partner to get through the difficult winter months,   
   now that oil prices are rising.   
       
   Icelandair shareholders will be able to vote on the deal in the coming days,   
   Wow Air is valued at $ 18 million (15.8 million Euro). After that, the   
   Icelandic competition authority must also give the green light.   
      
   --- D'Bridge 3.99 SR33   
    * Origin: AVIATION ECHO HQ (2:292/854)