Iceland’s Wow Air shuts down after failing to raise new cash

Wow Air has gone out of business, stranding thousands of passengers and creating potentially huge risks for Iceland’s tiny economy and its growing reliance on tourism. The carrier is the eighth European airline to have failed since the summer as margins are pinched by fluctuating fuel costs and over-capacity that’s sparked a continent-wide fare war. All 29 of Wow’s flights scheduled for Thursday were canceled and 2,700 passengers were asked to check with other airlines to get to their destinations. The govt activated contingency plans and issued a statement seeking to offer reassurances about the consequences for the local economy. “We have run out of time and have unfortunately not been able to secure funding for the company,” chairman Skuli Mogensen said in a letter to employees. <br/>