WOW Air

Jun 24, 2023

Icelandic discount carrier Play got off the ground in Canada this week, out of Hamilton's John C. Munro airport, joining New York, Washington, Boston and Baltimore in North America. A Montreal aviation professor and a Toronto personal finance columnist give their views on where Play may fit into the travel market. CEO Birgir Jónsson among Icelandic airline's execs who worked at now-defunct WOW New carrier offers cheap flights to Europe via Iceland but can it last? 12 hours ago Duration 2:08 A new airline connecting Canadians to Europe via Iceland has started flying out of Hamilton International Airport. It offers fares at a significant discount from the major carriers, but will it make it in a market where other carriers have failed? Junior Sobral was almost one of the thousands of WOW Air passengers left stranded when the Icelandic budget airline abruptly shut down in 2019. "I was supposed to be flying a week after [that] news emerged," Sobral, an avid traveller who lives in Toronto, told CBC News. But he said that won't stop him from using another discount airline, Play, which is headquartered in Reykjavík, and got its first flights from Canada off the ground this week, from Hamilton's John C. Munro airport. Hamilton — the Ontario city is listed as "Toronto" on its booking site — is now the Icelandic airline's fifth route in North America, joining New York, Washington, Boston and Baltimore. Frequent traveller Junior Sobral of Toronto says he welcomes new budget airline Play as an option for travel. (Submitted by Junior Sobral) Play offers trips to European destinations, with a stopover in Iceland, for hundreds of dollars less than competitors. Its summer kickoff promotion has one-way flights as low as $169 Cdn. Customers pay extra for checked baggage, food and seat selection on the Icelandic airline. "I never had any problems or concerns with [WOW]. I was an avid fan. I was always on their website looking for the best deals," said Sobral. "I just wish [Play] was based in Toronto." Airline got off the ground in U.S. in 2022 Play's first Hamilton-to-Europe flight departed Thursday evening. There are flights to 26 destinations in Europe, including London, Paris, Berlin, Copenhagen, Dublin, Brussels and Stockholm, stopping at Keflavik International Airport in Reykjavik on the way. It began offering flights between Iceland and Europe in 2021 and added U.S. destinations in 2022. Play's no-frills service means no in-flight magazines or Wi-Fi and entertainment systems, said chief executive officer Birgir Jónsson, one of several Play executives who had worked at WOW Air. "You basically pay for the services that you need if you want to bring extra baggage, you pay for that," he said at a media event Thursday for the launch in Hamilton. "If you want to eat something on the plane, you have to pay for it." Birgir Jónsson, chief executive officer of Play, was formerly with WOW Air, which went out of business in 2019. (Michael Cole/CBC) Play's model is similar to WOW's. While some travellers may be leery of Play due to its leadership's links to WOW, Jónsson said he has learned from past mistakes. "Be securely financed, have enough cash, don't grow too fast, [and] securely choose your destinations," he said. "So far, we've been very successful, and this is the year where we will turn an operational profit." Play plans to run flights daily, year round, knowing it will lose money in the winter months. It believes the consistent schedule will help grow demand for its service and generate more sales in the long run. "You lose money in the winter and you try to make it up in the summer, for sure," said Jónsson. "That's the harsh reality of aviation." Discount airlines come in waves Canada has seen several new players in the discount airline market in recent years, including Swoop, Flair Airlines, Lynx Air and Jetlines. However, WestJet recently announced plans to shut down Sunwing and Swoop, its low-cost subsidiaries, merging them into its mainline business. John Gradek, a professor of aviation management at McGill University, said the growth and decline of budget airlines usually comes in waves, driven by high airfares at the mainstream carriers, a phenomenon we are experiencing now. "Prices have gone through the roof," he told CBC News in an interview in Montreal. Gradek said Play's strategy appears to be based around prices that are notably cheaper than the larger airlines, but not so cheap that the company can't cover its costs. "Your strategy will be to steal traffic, not generate traffic… I think this summer's prices are OK for them to maintain profitability on the run."