Icelandair Group has entered into an agreement to purchase WOW Air, the low-cost, Iceland-based carrier. Bogi Nils, CEO of Icelandair Group, said that there are many opportunities for synergies with the two companies but they will continue to operate under their own brands and operating approvals. Under the terms of the deal, WOW Air shareholders will receive a 5.4 percent stake in Icelandair. WOW Air has opened more than a dozen routes to North America since 2015, with Icelandair often matching its rival’s plans. Icelandair is a more traditional carrier, offering business-class seats and standard amenities,  while WOW charges for everything aside from the fare. Skuli Morgensen, CEO of WOW, said the deal will give his carrier an opportunity to grow and prosper with a strong backer like Icelandair Group that “will strengthen the foundations of the company and its international competitiveness.”