Flugdienst Fehlhaber is established in 1991 to offer all-cargo services to regional destinations on behalf of larger corporations and the major freight operators. Revenue flights begin and continue for two years with a pair of Cessna 406 Caravan Ils.
FLUGFELAG AKUREYRAR, H. F.: Iceland (1937-1939). In the spring of 1937, Flugfelag Akureyrar is formed at the north coast community of Akurayri and is equipped with a WACO YKS floatplane. The first Akureyri to Reykjavik air bridge is inaugurated on May 4. Summer-only service begins on June 5 over routes from Reykjavik to London, Glasgow, and Copenhagen.
Operations continue apace in 1938 and into 1939. While taking off from a fjord during the winter of the latter year, the WACO capsizes and with the loss of the company’s total flying equipment, it is forced to close its doors. It will be succeeded the following year by Flugfelag Islands, H. F. (2).
FLUGFELAG AUSTURLANDS, H. F.: Egilsstadir Airport, Egilsstadir, IS-700, Iceland; Phone 354 (97) 11122; Fax 354 (97) 12149; Code XZ; Year Founded 1972. Flugfelag Austrurlands is organized at Egilsstadir in 1972 to continue the commuter work of failed Flugjonustan. Shares are held by private and local government interests (55%) and Flugfelag Islands, H. F. (2)/Icelandair, H. F. (45%). Ronar Faisson is named managing director. Employing a Piper PA-31-310 Navajo, revenue flights are started or continued linking the company’s base with Bakkafjordur, Vopnafjordur, Borgarfjordureystri, Nordjordur, Breiddalsvik, Hofn i Hornafirdi, and Akureyri.
Services are maintained throughout the remainder of the decade and into the 1980s, by which time Reykjavik has joined the route network. In 1983, a second Navajo is acquired.
The two Pipers maintain the company’s regional system until 1990 when a third PA-31 is purchased. Gustaf Gudmundsson becomes general manager in 1991.
Operations continue in 1992-1999; however, recession causes the fleet to be reduced to just one each Navajo and Navajo Chieftain.
As the new millennium begins, Flugfelag Austerlands is also operating as Eastair, Ltd. True to its name in either language, sight-seeing tours continue to be offered from Egilsstaoir to impressive sites throughout East Iceland.
FLUGFELAG ERNIR, H. F.: Iceland (1969-1991). Organized at Isafjordur on May 1, 1969, this carrier is originally known as Hordur Gudmundsson Air Service. Scheduled commuter services are undertaken linking the company’s base with Sudureyri, Flateyri, Thingeyri, Bildadular, Holt, and Patreksfjordur. During the 1970s, the company name is changed to Flugfelagid Ernir and the fleet comprises one Britten-Norman BN-2 Islander and a Piper PA-23 Aztec.
Markets do not change in the 1980s; however, the Islander is replaced by a Cessna 404 Titan in 1987. In 1990 , President Gudmundsson adds a de Havilland Canada DHC-6 Twin Otter and a Cessna 404 Titan in place of the Islander.
In 1991, the company is renamed Ernir Airlines.
FLUGFELAG ISLANDS, H. F. (1): Iceland (1928-1931). The Icelandic government forms this carrier on May 1, 1928 to provide seasonal services around the island. Richard Walter is named managing director and a Junkers F-13, christened Sulan, is leased from Deutsche Luft Hansa, A. G. (DLH). During the summer, services are expanded by the addition of a second chartered F-13, the Veidibjallan.
The two Junkers are lost in accidents during 1929-1930; however, a third F-13, the Alftin, is rented for the 1931 season. The effects of the world depression are felt even in Iceland and the last scheduled flight is made on August 3.
FLUGFELAG ISLANDS, H. F. (2)-ICELANDAIR, H. F.: Reykjavik Airport, Reykjavik, IS-101, Iceland; Phone 354 (1) 690 100; Fax 354 (1) 690 391; Http://www. centrum. is/icelandair. front. html; http:// Www. arctic. is/Transport/Icelandair/Icelandair. html; Code FI; Year Founded 1940. Flugfelag Akureyrar is reorganized in 1940 as Flugfelag Islands (Air Company of Iceland) and company headquarters are transferred to Reykjavik. A new WACO YKS floatplane is purchased to replace the crashed unit and domestic service is restarted. A total of 770 passengers are transported prior to a total ban on flying instituted later in the year in response to the widening European war. The restriction of flying is lifted in 1941 and the Reykjavik to Akureyri WACO operation is resumed.
The first landplane to be received is a Beech 18D, which is delivered in 1942. It is employed to inaugurate a new service, linking the capital with Egilsstadir.
Two de Havilland DH 89A Dragon Rapides are acquired in 1943 and irregular domestic flights continue in 1944-1945 as a war surplus Consolidated PBY Catalina is acquired. In March of the former year, three local flyers (Kristinn Olsen, Alfred Eliasson, and Sigurour Olafsson) return from Canada and unsuccessfully attempt to sell the company their Stinson SR Reliant. When Flugfelag turns them down, they launch Loftleidir, H. F.
Two Douglas DC-3s are leased from Scottish Airlines, Ltd. in 1946 and scheduled service to Prestwick and Copenhagen begins on May 27.
A DC-3 with 4 crew and 12 passengers, disappears while on a May 29, 1947 flight from Reykjavik to Akureyri; the wreckage is found the next day near Hjedinsfjordur and there are no survivors.
The aircraft lease with Scottish Airlines, Ltd. lapses in 1948; the first DC-4 is delivered and enters service on April 10 and a joint Reykjavik-London DC-4 service is inaugurated with Loftledir Icelandic Airlines, H. F. on May 3, 1949.
Flights continue in 1950.
While on final approach to land at Reykjavik on January 31, 1951, a DC-3 with 3 crew and 17 passengers crashes at sea off Hafnarfjordur during its second attempt to land in a snowstorm; there are no survivors.
The Icelandic government now decrees that domestic competition between its two airlines is undesirable. Internal services are awarded to Flugfelag Islands while Loftledir Icelandic Airlines, H. F. is freed to inaugurate deep discount fares across the North Atlantic.
The marketing title of Flugfelag Islands-Icelandair is adopted in 1952.
Little change is seen in 1953-1956. The carrier’s first turboprop, a Vickers Viscount 759, is deployed on several European routes in May 1957, including Reykjavik-Copenhagen via Glasgow on May 3, Reykjavik-London via Glasgow on May 6, and Reykjavik-London on June 3.
In 1959, enplanements are 51,195; these figures rise to 61,554 in 1962 and 62,056 in 1963.
A Vickers Viscount 759D with four crew and eight passengers crashes while on final approach to Nesoy Island, Norway, on April 14 of the latter year; there are no survivors.
With a base in the middle of Western Europe, the carrier is able to offer low-cost access almost everywhere on the Continent and the U. K. and wins a reputation as the “hippies” airline.
In 1964, the Handley Page Herald and Fokker F.27-200 Friendship are evaluated as Viscount replacements, with the latter winning out.
Annual enplanements are 90,701.
Birgir Kjaran becomes chairman in 1965.
New sales facilities are opened in Frankfurt and Reykjavik and the passenger terminal at Reykjavik is upgraded. The first Fokker F.27-200 is delivered in May.
Passenger boardings jump 33.7% to 136,793 while freight traffic is up 12.3%.
A second F.27-200 arrives in 1966 as airline employment reaches 380. A total of 160,000 travelers are carried on the year and revenues are $2.43 million.
A DC-3 is lost under unknown circumstances at Danmarkshavn, Iceland, on February 23, 1967.
The first Boeing 727-108C is delivered in June and helps the year’s bookings to climb to 182,666. Revenues total $7.2 million.
There are 380 workers in 1968 and the fleet comprises 1 B-727-108C, 1 Viscount 759,2 DC-6Bs, 2 F.27-200s, and 2 DC-3s. Traffic falls off to 109,516.
The payroll reaches 386 in 1969 as boardings drop to 156,719. The Viscount 759 is withdrawn.
In 1970 the employee population is increased 2.08% as passenger traffic fall to 108,328.
An F.27-200 with 4 crew and 30 passengers crashes into a 1,500-ft. mountain while descending to Mygganaes, on Denmark’s Faeroe Islands, on September 27 (8 dead).
A replacement F.27-200 is added in 1971 and traffic rebounds to 130,612.
A second B-727-108C is acquired in 1972 as one DC-3 is retired; passenger boardings rise to 152,246.
Even though pilots strike the carrier May 8-10, 1973, a merger process with Icelandic Airlines, H. F. is begun in August when the capital stock of the two carriers is consolidated under a new holding company, Flugleidir, H. F.
The employee population totals 465 and the fleet includes 2 B-727-108Cs, 4 F.27-200s, and 1 DC-3. Revenue passengers number 183,287.
The two airlines maintain separate operating identities in 1974-1978 under the direction of a three-man executive committee whose aim is to eliminate wasteful competition and achieve rationalization through centralization of finances, marketing, operational, and technical affairs, domestic services, and administration. Loftleidir now flies 11 weekly roundtrips between Luxembourg and New York, while the Flugfelag B-727-108Cs fly to Scandinavia, central Europe, and the U. K.
The merger process moves slowly and, while emphasis continues to be placed on domestic and European regional service, low-fare, non-IATA flights from the U. S. to Iceland or Luxembourg grow to account for 65% of the line’s service. Passenger boardings statistics during the period are 201,375 (1974), 205,176 (1975), 205,756 (1976), 235,394 (1977), and 243,485 (1978).
The operations of Icelandic and Icelandair are fully integrated into a single national flag carrier, Icelandair H. F., on October 1, 1979. Flugfe-lag (“Air Company”) is retained as the carrier’s domestic trade name while Icelandair becomes the international moniker.
Deregulation of the U. S. industry begins to increase competition and the oil crisis brings additional costs.
Consequently, on January 2, 1980, the company is forced to lay off 139 employees. Passenger enplanements for the year total 661,557. Expenses of $133 million exceed operating income of $126.5 million, leaving losses: $6.6 million (operating) and $7 million (net).
The workforce is increased by 8.8% in 1981 to 1,159 and the fleet includes 3 DC-8-63s, 3 B-727-108Cs, and 5 F.27-200s.
The fiscal situation is such that the carrier’s board of directors considers an end to transatlantic services, in the process cutting back flights to New York from 23 to 2 each week and suspending service to Baltimore.
Boardings dip 7.6% to 533,513 and freight traffic falls 11% to 18.52 million FTKs.
Despite a return to Baltimore and growth in passenger boardings to 640,000 in 1982, a net $2.6-million loss is taken.
The workforce is increased by 0.8% in 1983 to 1,221 and an F.27-500 is delivered. Passenger traffic dips 0.1% to 640,093, but freight traffic jumps 21.5% to 22.98 million FTKs. A net $4-million profit is posted on revenues of $126.7 million.
The payroll is boosted 9.6% in 1984 to 1,338 as service is launched from Luxembourg to Detroit and Orlando, both via Reykjavik. A DC-871 joins the fleet.
Boardings jump 10.5% to 707,371, as cargo accelerates 6.3% to 24.02 million FTKs. Revenues advance 6.1% to $134.4 million while costs rise just 4.6% to $125.6 million. An operating profit of $8.8 million is generated and the net profit grows to $11.4 million.
On January 1, 1985, Sigurdur Helgason Jr. becomes president/CEO and he unveils a plan for total restructuring of corporate philosophy, fleet, and routes. The carrier is fully privatized in August as all remaining government shares (20% of the total) are sold to private investors; employees now hold a 42% stake.
The route network grows to 17 cities in 11 countries as service is inaugurated from Reykjavik-Bergen and Salzburg.
Passenger boardings accelerate 10.9% to 784,501. Expenses, however, skyrocket and the profit declines to $4.7 million net.
Airline employment in 1986 stands at 1,611 and the fleet includes 4 DC-8-63s, 1 DC-8-55, 1 B-727-208A, 1 B-727-108C, and 5 F.27-200s.
In January, a CL-44D-4 is sold to Aer Turas Teroranta, Ltd. A new marketing approach is undertaken, placing emphasis on Iceland-Europe service, downgrading Europe-U. S. service, and the promotion of Iceland as a tourist destination.
A cooperative route is opened with Gronlandsfly/Greenlandair, A. S. linking Godthab and Reykjavik. The company transports large numbers of the world’s journalists to Reykjavik to cover the Hofdi House summit between U. S. President Ronald Reagan and Soviet President Mikhail Gorbachev.
Customer bookings rise 5.5% to 788,831 and cargo is up 11.6% to a total of 7,596 tons. Revenues reach $161.4 million and profits double and then some to $8.26 million (operating) and $8.1 million (net).
The payroll is increased by 6.3% in 1987 to 1,563; as the company celebrates its fiftieth anniversary, it remains the largest private enterprise in Iceland.
During public ceremonies, orders are placed for two B-737-408s. On April 14, the company president, Vigdis Finnbogadottir, opens the Leif Eriksson Terminal at Keflavik Airport, 30 miles south of Reykjavik; international flights are transferred to it from Reykjavik Airport. Passenger boardings surge 16.7% to 920,594 and freight rises 30.4% to 23.7 million FTKs. Revenues advance 26.1% to $211 million, but costs increase 35.3%. As a result, the operating loss is $4.2 million and the net loss is $2.55 million.
The workforce grows a further 2.4% in 1988 to 1,600 and the fleet now includes 4 DC-8-63s, 1 DC-8-55F, 1 B-727-108C, 1 B-727-208A, and 6 F.27-200s. Orders are placed for 3 B-757-208s.
As the result of severe financial losses, services to Baltimore (BWI), Chicago and Boston are suspended at the end of September; however, twice-weekly nonstop flights begin from Glasgow to Orlando on October 31.
In December, Reykjavik to London frequencies are increased from four to six per week while flights to Frankfurt are expanded from one per week to two.
Customer bookings descend 9.2% to 835,759, but cargo swells by 18.4% to 28.07 million FTKs.
The payroll is cut by 12.5% in 1989 to 1,400 as another bad year is suffered. The high operating cost of the DC-8-63 forces a suspension of flights to Baltimore (BWI). Further emphasis is now placed on an increase of service to Europe, which now grows to total 68% of company traffic. Flights are now offered from Keflavik to London, Glasgow, Paris, Frankfurt, and Salzburg, as well as Luxembourg, the Faeroe Islands, and three Greenland stops.
In July, an interline marketing agreement is signed with Midwest Express. The arrangement offers discount fares to Midwest passengers that connect with Icelandair for travel to Iceland and Luxembourg. Simultaneously, the single-class, low-cost service operated for decades is augmented by the introduction of enhanced Saga Class business service. In November, the carrier offers a cash-bonus program to promote the new Saga Class.
Passenger boardings fall another 12.2% to 733,754 and freight is off by 3.1% to 27.19 million FTKs. Losses of $6.2 million (operating) and $3.1 million (net) are suffered. Still, the 252,000 domestic passengers transported equal in number the nation’s entire population.
Company employment is increased a slight 0.4% in 1990 to 1,405.
Beginning in January, U. S. skiers are offered a special add-on inclusive-tour package, the first by the company, to the Akureyri resort, far to the north of the capital near the Arctic Circle. At the Cannes Duty Free Exhibition in February, the carrier wins the 1989 Sony Award for excellence in-flight entertainment.
In an effort to redress its traffic downturn, Icelandair acquires two Rolls Royce-powered B-757-208s and three B-737-408s. The arrival of first of the B-757-208s is delayed until early April, due to a strike at Boeing. Using water from four Iceland rivers is used instead of traditional champagne, it is christened Hafdis (Water) and is employed to resume services to Luxembourg, Oslo, and Stockholm from Baltimore (BWI). The three “Baby Boeings” are named Eydis, Vedis, and Fanndis.
On May 7, thrice-weekly roundtrip service is initiated by the Hafdis from Keflavik to Baltimore (BWI); a fourth weekly flight will be added at month’s end.
Meanwhile, the second B-757-208, Aldis, arrives as the last DC-8-63 is sold to new owners, just one day short of the twentieth anniversary of its delivery to Flugfelag.
Orders are placed in June for three Fokker 50s; the last B-727-108 is sold to UPS (United Parcel Service) in September. Several of the B-737s join F.27-200s on the domestic service that links Reykjavik with nine local destinations, including the furthest point, Egilsstadir, 235 miles away near the east coast fjords.
Later in the year, Orlando to Europe charter flights join those already mounted from Baltimore and New York.
Customer bookings rebound 6.3% to 779,964 and cargo increases 31.7% to 35.8 million FTKs. A net $7.2-million gain is realized following an operating surplus of $9.2 million, both on revenues of $208.68 million.
The payroll is downsized by 11.8% in 1991 to 1,280 and the fleet now includes 4 B-737-408s, 3 B-757-208s, and 5 F.27-200s.
Both the last B-757-208 and final B-737-408 arrive in April, allowing retirement of all remaining B-727-208As. One B-757-208 is chartered to Britannia Airways, Ltd. for a year and orders are outstanding for four Fokker 50s, which will be employed by the Flugleidir subsidiary. During the summer, the new B-757-208s achieve a utilization rate of 16 block hours per day.
Passenger boardings slide again, falling 0.8% to 773,833 and freight drops 3.3% to 34.62 million FTKs. Revenues increase 9.5% to $215.49 million, the operating profit climbs to $15.2 million, and net gain tops out at $2.5 million.
Employee numbers are not changed in 1992.
New sale fares from the U. S. to Luxembourg are introduced on April 1 (through June 10) and include the use of a rental car for a week when two people travel together on the same flight. A three-year fleet renewal program is completed in May by the delivery of the fourth and last Fokker 50 (the Asdis); Icelandair now claims to have the youngest scheduled airline fleet in the world. Also during the month, the airline’s London-based consultant, Lincoln Beddows, assists the company in reaching a decision to target future growth in the intra-European market.
At the same time, a new weekly service is launched from Glasgow to the Faroe Islands.
Free limousine service is introduced in June for business-class passengers at New York and Baltimore (BWI). Also in June, the new Flu-gleidir Fokker 50s, which succeed the F.27-200s now retired, begin daily roundtrip services from Reykjavik to the Faeroes Islands, Isafjor-dur, Kalusuk, Glasgow, and a new destination, Narsasuak in Greenland.
A 134,500-sq.-ft. repair station at Keflavik is occupied in December.
Customer bookings recover and advance by 4.4% to 807,575 while cargo declines 12.5% to 30.30 million FTKs. Revenues total $227 million and there is a net downturn of $315,000 despite a $15.9-million operating gain.
In 1993, President/CEO Helgason oversees a fleet that includes 4 each B-737-408s and Fokker 50s plus 3 B-737-208s. In addition to a 10-stop domestic network, international destinations visited from Reykjavik include Amsterdam, Baltimore, Barcelona, Copenhagen, Faroe Islands, Frankfurt, Glasgow, Goteborg, Hamburg, London, Luxembourg, Milan, Munich, New York, Orlando, Oslo, Paris, Salzburg, Stockholm, Vienna, and Zurich.
In February, a strategic and code-sharing alliance is entered into with SAS (Scandinavian Airlines System). The pact will link frequent flyer programs and provide for code-sharing on all SAS flights within Scandinavia and to Hamburg via a new hub at Copenhagen. Simultaneously, an 18-month “cost rebalancing program” is started, designed to reduce expenses by 5%.
On June 1, a joint European hub is established with SAS (Scandinavian Airlines System) at Copenhagen that allows the island carrier’s passengers to interline with SAS intra-European and long-haul flights. To take advantage of this new arrangement, frequencies are increased from 7 per week to 28. Code-shared services are also inaugurated from Reykjavik to Hamburg via Copenhagen.
Later in the year, a new maintenance base is set up at Keflavik.
Customer bookings recover and grow by 2.8% to 829,935, while cargo ascends 20.2% to 36.4 million FTKs. Although an operating gain of $10.21 million is registered, there is a net loss of $1.99 million.
Airline employment is increased by 2.3% in 1994 to 1,222.
Copenhagen is now the company’s main European terminus and the busiest of its markets. Consideration is given to new markets in both the U. S. and Canada. In addition to its international routes, the company still serves 10 cities located on the periphery of the country. Plans are made to pass all domestic operations to a new Flugleidir Innanlands,
H. F./lcelandair Domestic, which will fly local routes until total domestic airline deregulation occurs in 1997. Passenger boardings jump 16.9% to 1,061,472 while freight does slightly better, climbing 17% to 42.02 million FTKs. Revenues advance 8.3% to $220.61 million as expenses grow only 4.4% to $201.97 million. Consequently, the operating profit swells to $18.64 million and net gain recovers and rises to $7.18 million.
The workforce grows by 11.2% in 1995 to 1,359.
Throughout the year, the company celebrates the fiftieth anniversary of international operations.
On March 26, the company becomes the first European airline to go completely smoke-free on both its domestic and international routes.
In August, domestic operations are split off from the main carrier and are centered under the name Flugleidir Innanlands, H. F. at their own Reykjavik Airport terminal. Given the carrier’s Fokker 50 s, the new division operates to a variety of points around the island as well as weekly to Vagar, the only airport in the Danish-owned Faroe Islands.
Enplanements accelerate 6.7% to 1,132,127 and cargo does even better, climbing 7.6% to 45.14 million FTKs. Revenues swell 18.2% to $260.68 million. Expenses rise 19.6% to $241.53 million and there are profits: $19.14 million (operating) and $9.77 million (net).
Airline employment grows by 18% in 1996 to 1,603 and the owned fleet now includes 2 B-737-408s, 3 B-757-208s, and 2 Fokker 50s. Also operated, under charter, are 4 B-737-408s, 1 B-737-4S3, and 3 Fokker 50s, one of which is subleased to Skyways, A. B. of Sweden.
A B-757-28AER arrives in January under a 75-month charter from ILFC. A B-737-3Y0 is also owned, but is leased to the New Zealand line Kiwi Travel International Airlines, Ltd. in mid-spring
Four-times-a-week B-757-208 roundtrip service begins from Ke-flavik to Boston on March 31 followed by Halifax, Nova Scotia, on May 14. Flights are also started to Munich, and Berlin.
Icelandair and Greenlandair, A. S. collaborate with Greenland Tourism, the national tourism board, to increase the number of tourists visiting Greenland during the summer. Between mid-June and mid-
September, a Fokker 50 honors this commitment with four weekly roundtrips between Narsarsuaq, South Greenland, and Reykjavik.
In December, a marketing agreement is reached with Southwest Airlines (2) for services beyond Baltimore (BWI) to Cleveland. Under terms of the pact, Icelandair will handle all reservations and ticketing, ensuring its passengers a smooth transit onto Southwest jetliners. Customer bookings soar 12.7% to 1,275,294 and 52.95 million FTKs are operated, a 17.3% increase. Operating income grows 16.2% to $302.87 million while costs decline 3.1% to $285.16 million. Operating income declines to $17.71 million and net gain inches up to $9.84 million.
Airline employment grows by 4.8% in 1997 to 1,680.
Southwest Airlines (2) and Icelandair begin to test their single-route program on January 22. Passengers from Cleveland are able to connect at Baltimore (BWI) to Icelandair flights bound for Reykjavik.
In February, code-sharing begins with British Midland Airways, Ltd. on services from Reykjavik to London (LHR) and beyond to Dublin and Belfast and from Reykjavik to East Midlands Airport via Glasgow. Also during the month, the Flugledir Innanlands, H. F. division is combined with Flugfelag Nordurlands, H. F. to form the new domestic carrier Flugfelag Islands, H. F. (3).
Icelandair flies the cast and crew of ABC-TV’s Good Morning America to Scandinavia for their live broadcasts from the “Lands of the Midnight Sun,” between May 12-17. Hosts Charles Gibson, Joan Lunden, and Spencer Christian broadcast live from Denmark, Norway, Sweden, Finland, and Iceland. Although the airline is not specifically profiled, the ABC and Icelandair personnel work well together.
Flugfelag Islands, H. F. (3) begins operations on June 3.
The Icelandair/Greenland Tourism service is operated again this summer. This year, a fifth weekly frequency is provided by an Atlantic Airways Faroe Islands, A. S. British Aerospace BAe 146-200A.
During the July Paris Air Show, the carrier orders a pair of B-757-200s for delivery in 1998-1999 and two B-757-300s for delivery in 2001; eight options are also taken for planes to be received between 2000 and 2006.
The carrier serves as the official airline of the 24th Annual Virginia Scottish Games at the end of the month.
Southwest Airlines (2) and Icelandair expand their marketing agreement on August 14 to include Chicago (MDW), and Providence. Southwest passengers from those cities, as well as Cleveland, are able to connect at Baltimore (BWI) with Icelandair flights to Reykjavik. All reservations and ticketing will continue to be handled by Icelandair Reservations.
On October 6, the alliance with Southwest Airlines (2) is further expanded. Southwest customers from Louisville to Baltimore (BWI) are able to seamlessly connect with Icelandair flights to Luxembourg.
During the month, a B-737-3S3QC arrives under a four-year charter from ILFC.
Service is inaugurated to Glasgow on November 1 from both New York (JFK) and Baltimore (BWI).
Passenger boardings fall 5% to 1,211,732, but freight climbs 5.5% to 55.8 million FTKs. There are losses: $5 million (operating) and $4 million (net).
Icelandair begins weekly B-757-208ER roundtrip service from Reykjavik to Minneapolis (MSP) on April 9, 1998. Those taking the flight to Iceland are able to connect on to Copenhagen, Oslo, Stockholm, London, Glasgow, Frankfurt, Hamburg, Luxembourg, Amsterdam, and beginning on May 14, the carrier’s newest European gateway, Helsinki.
An arrangement is entered into with Gronlandsfly, A. S./ Greenlandair, A. S. in June. Flights previously operated from Kanger-lussuaq and Narsarsuaq to Copenhagen with a B-727-90C wet-leased from First Air, Ltd. of Canada will now be operated under a wet-lease agreement with Icelandair. A B-757-208ER, painted in Greenlandair livery and christened Kunuunnguaq (Little Knud) in honor of the Danish explorer Knud Rasmussen, is dedicated to the arrangement.
For the second consecutive year, the company serves as the official airline of the Annual Virginia Scottish Games, which begin on July 24.
Under terms of a marketing agreement signed with Trans World Airlines (TWA) on July 30, customers of Icelandair and TWA are able to earn and redeem loyalty points in each other’s frequent flyer programs beginning on September 1.
The board of directors, meeting at Reykjavik during the week of August 17, determine to place greater emphasis on travel to Europe and makes several changes in the company’s route network that are announced on August 24. Services to Paris and Frankfurt will be expanded in January and, perhaps most startlingly, service to Luxembourg, an integral part of the carrier’s route network since 1955, will be eliminated as improved connections are made via the airline’s hub at Keflavik.
The carrier’s staff at New York (JFK) is significantly reduced on September 15. From that date, Icelandair operations are handled by British Airways, Ltd. (2), under the supervision of five Icelandair employees.
Employing the ILFC B-737-3S3QC, Icelandair begins weekly allcargo service between Boston and Reykjavik on October 25. The service will be tested for nine weeks, after which the airline will determine whether or not it should be expanded.
Beginning on November 1, Icelandair, makes a special package available to families wishing to visit the new home of Keiko, the killer whale from the film Free Willy, who is Iceland’s newest tourist attraction. The offer, which will end on March 31, includes a viewing and a talk by a local guide.
A $131-million order is placed with Boeing on December 3 for two B-757-208ERs. The purchase is in addition to three B-757 requests still outstanding.
Passenger boardings accelerate 17.6% to 1.32 million, while freight traffic rises 6% to 54.5 million FTKs. Revenues advance 12.6% to $321 million, while costs climb 7.2% to $312 million. Consequently, there are profits: $9 million (operating) and $2 million (net).
Flights continue in 1999. During the summer, an MD-83 is wet-leased by Crossair, Ltd. and employed on a weekly seasonal service between Reykjavik to Zurich.
While in the final stages of takeoff from New York (JFK) on June 27, Flight 614, an Icelandair B-757-208ER with 7 crew and 185 passengers, clears an Air France B-747F, which has just landed, turned, and crossed the runway in front of the departing passenger plane; no injuries are reported.
A former Challenge Air Cargo B-757-23APF is added to the fleet in September, replacing the company’s smaller B-737-3S3QC. At the same time, Icelandair moves the North American terminus of its transatlantic freight service, operated from Liege via Keflavik, from Boston to New York (JFK) to accommodate a new loading agreement with TNT Worldwide Express.
A code-sharing agreement is signed with SAS (Scandinavian Airlines System) on October 8. Under its terms, SAS is allowed to assign its designator to Icelandair flights from the three Scandinavian capitals to Boston, Minneapolis/St. Paul, and Baltimore/Washington and from Reykjavik via Copenhagen, Stockholm, and Oslo to Hamburg, Gote-borg, Munich, Dusseldorf, Brussels, and Zurich. Icelandair, for its part, places its code on SAS flights from Scandinavia to all of its new partner’s destinations in Europe.
The carrier’s new millennium color scheme is unveiled on the B-757-27B Hafdis in November. Featuring “Icelandair Holidays” titles, the new livery also commemorates the 1,000th anniversary of Leif Eriksson’s visit to North America.
Passenger boardings rise 3% to 1,349,000, as freight traffic plunges 11% to 75.9 million FTKs. Revenues rise 8.7% to $416.7 million and there is a net profit of $20.8 million.
The workforce at the beginning of 2000 totals 1,769 and the company continues to fly 1 each B-737-3S3QC and B-737-408 on local services. The B-757 fleet now includes 6 Dash-208ERs and 1 each Dash-23APF, Dash 27B, and Dash-28A. The code-sharing agreement with SAS (Scandinavian Airlines System) takes effect on January 1.
Permission is received from Transport Canada on February 18 to increase Keflavik to Halifax roundtrips to four times a week.
While on final approach into Minneapolis (MSP) on November 1, Flight 1653, a B-757-208ER arriving from Reykjavik, is hit by lightning. Although the aircraft is able to land safely and no injuries are reported, the Boeing is damaged and requires such repairs as to force a 24-hour postponement of the return flight.
As a cost-cutting measure, service from Reykjavik to Copenhagen, Frankfurt, and Minneapolis is suspended on November 23.
Customer bookings jump 10% during these 12 months to 1.47 million, while cargo traffic skyrockets 748% to 115.1 million FTKs.
World History
