Description: Wow! Cheap fairs to Europe! Or maybe not. If you are one of those who has been stranded as of Thursday because of the collapse of Wow – a discount airline headquartered in Iceland – then maybe the bloom is off of the rose. Or maybe you’ve had a ticket on Wow for a European vacation post-graduation this summer. Well, not so wow for you. This seems to be another example of an airline that expanded too fast and too soon. leaving clients in the wake.
Date: March 27, 2019
1) How would feel if you were holding s Wow ticket? Have any of your classmates been caught in this mess?
2) If you were the chief financial officer at a discount airlines, what type of advice might you give management as they sought to expand?
3) Page 360 in Wiley’s Financial Accounting: Tools for Business Decision-Making talks about the subject of risk assessment as a component of a company’s internal control system. What do you think may have gone wrong with Wow’s risk assessment process?