About Investing

Risk

When establishing a limited liability company, the driving force is often a profit hope. In this case, substantial macroeconomic benefits can be argued. Nevertheless, there is always some risk taken by submitting share capital.

a) Therefore, can it be asked if Skúla fails to build a Wow air, or if it fails to establish a new budget airline?

 

Furthermore, there will be no risk for those who have proposed a share capital, as the promise is canceled.

 

b) If Skúla manages to build a company or create a new low-cost company?

 

Then the private limited company X ehf will be established.

 

That company chooses a board, which must review the operating model of the new airline. If the model is guaranteed then X ehf. shares its shares and issues shares to shareholders and buys shares in the new company, against a party from X ehf. will be on the board, to ensure the interests of shareholders X ehf.

Treasury

The Treasury's position has been strengthened by the increase in tourist flows and the Central Bank's foreign exchange reserves have steadily grown throughout the growth period since Wow air was founded in 2011.

Tax revenues from aviation are significant. Icelandic companies' airline operations generate tens of billions of ISK in direct taxes and related expenses.

 

It is estimated that in addition, another billion ISK will flow into the Treasury through the branch's supply chain and billions moreover from the employees' use of the aviation industry itself.

 

It can be seen from this that air operations result in significant macroeconomic benefits for Iceland's economy.

Private limited liability company yes or no

Without the arrival of a private limited company, it is very likely that there will be no new budget airline in the country to recover from Wow air. Every day Skúli and his people will find it harder to rebuild Wow air.

As a result, it is necessary for the public to come to the establishment of a limited liability company, which could invest in a new airline.

Competition

Active competition in markets is important to boost peoples prosperity, improve business environment and safeguard public interests

 

Growth

As most people know, there has been great economic growth in Iceland in recent years or since the establishment of Wow air 2011.

Part of that growth can be traced to the arrival of tourists, which have increased activity in all sectors of the economy.

 

One thing is for sure that Icelandair cannot fill up the gap that has already happened in air transport. It is therefore clear that the competition has diminished and there is a risk that air transport will increase significantly in price, reduce the number of seats, and tourists will therefore find other destinations, which has a negative impact on economic growth and new wage agreements.