Indigo reaches tentative agreement to buy Wow Air

Indigo Partners has a preliminary agreement to purchase Wow Air, a deal coming less than a day after Icelandair Group pulled its offer to buy the beleaguered carrier. The Phoenix-based private equity firm, which has stakes in Frontier Airlines, Volaris and Wizz Air, will complete its due diligence of Wow before the deal can close, Indigo says. Terms were not disclosed. Indigo is known for its successful investments in ultra low-cost carriers. Spirit Airlines' turnaround from a small leisure carrier in the eastern USA to a national ULCC is one of its more successful investments. Icelandair was due to acquire Wow under a deal reached earlier in November. However, the airline scrapped the deal Thursday when it was unable to meet a number of "pre-conditions" at its shareholder meeting. <br/>