S-101, Iceland; Phone 561-6060; Fax 561-6062; Http://www. airice-land. is; Code NY; Year Founded 1997. In February 1997, the Flugfelag Islands, H. F. (2)/Icelandair, H. F. division Flugledir Innanlands, H. F. is combined with the Akureyri-based Flugfelag Nordurlands, H. F. to form this new domestic carrier, which is also known as Air Iceland. The combined fleet includes 3 Fokker 50s, 2 Fairchild Metro 23s, 1 Metro III, 2 de Havilland Canada DHC-6-300 Twin Otters, and 1 Piper PA-31-350 Navajo Chieftain.
The new entity begins revenue services on June 3, the sixtieth anniversary of the founding of Icelandair. A total of 12 domestic markets are visited from Reykjavik and Akureyri, along with Vagar in the Faroe Islands, Glasgow, and the Greenland communities of Kulusuk and Narsarsuaq. Flights continue in 1998.
Realizing that the Internet will play an important role in its future, the company, in late 1999, begins working on a ticketless travel system.
The company takes over both of the Avions de Transport Aerien ATR42-320s of Islandsflug, H. F. on May 21, 2000.
In cooperation with Gronlandsfly, A. S./Greenlandair, A. S., twice-weekly return service is launched from Ilulissat to Kulusuk on June 12. At Kulusuk, Greenlandair customers are able to connect with the Air Iceland service to Reykjavik.
Losing money on the routes, the carrier, on September 22, suspends flights from Akureyri to the Faroe Islands communities of Egilsstadir, Isafjardur, Thorshavn, and Vopnfjordur.
The new ticketless sales system is first tested on flights to Husavik in September and in October is placed into operation.
Like Icelandair, Air Iceland, in late November, considers dropping loss-making domestic routes.
FLUGFELAG NORDURLANDS, H. F.: Iceland (1974-1997). With Icelandair, H. F. holding a new 35% interest, Norduflug is renamed Flugfelag Nordurlands on May 1, 1974. Einar Helgason, son of founder Tryggvi Helgason, is named chairman with Sigurdur Adalsteinsson as general manager. The previous scheduled services linking the company base at Akureyri Airport with Grimsey and Vopnafjordur are maintained and new routes are added to Raufahrhofn and Thorshofn.
Late in the decade, the fleet is upgraded to comprise 2 de Havilland Canada DHC-6-100 Twin Otters, 1 Piper PA-31-350 Navajo Chieftain, 1 Mitsubishi MU-2, and 1 Piper PA-23 Aztec. New markets are opened at Isafjordur, Egilsstadir, and Siglufjordur.
A DHC-6-100 is destroyed in a ground fire at Daneborg on July 27, 1979.
During the early 1980s, Husavik, Kopasker, Olafsfjordur, Reykjavik, and Siglufjordur join the route network. Passenger bookings for the 20-employee company fluctuate during the recession; 23,400 are carried in 1981; 20,100 in 1982; and 22,500 in 1983.
On behalf of mining and other private interests, services are initiated in 1984-1987 from the east coast of Greenland.
A third Twin Otter is added in 1988, along with two Piper PA-38 Tomahawks.
A DHC-6-200 is based at Sodalen, Greenland, in the summers of 1989-1990 on behalf of a Canadian gold mining concern.
A Fairchild-Swearingen Metro III is purchased in 1991. At this point, the fleet includes that aircraft plus one DHC-6-200 and two DHC-6-300s, one of which is chartered to Empire Airways in the U. S.
FLUGLEIDIR. See ICELANDAIR, H. F.
In 1992-1993, President Helgason’s fleet includes 1 DHC-6-200 , 2 DHC-6-300s, 2 Piper Navajo Chieftains, 1 Metro III, and 1 Piper PA-23 Aztec. The company continues as an affiliate of Flugfelag Islands, H. F. (2)/Icelandair.
Twelve points in Iceland are served during 1994-1996, along with several charter destinations in Greenland. In February 1997, the carrier is combined with the Icelandair division Flugledir Innanlands, H. F. to form the new domestic airline Flugfelag Islands, H. F. (3).