Icelandair ehf is the main airline of Iceland, based on the grounds of Reykjavík Airport in Reykjavík.^[1] It is part of the Icelandair Group and currently operates scheduled services to 33 cities in 13 countries on both sides of the Atlantic Ocean out of its hub at Keflavík International Airport.^[2][3] The geographical position of Iceland thus allows for one-stop transatlantic flights, which is one pillar of the airline's business strategy, along with traffic to and from the country.^[4]

In 2011, Icelandair transported 1,750,000 passengers, an increase by 18 percent compared to 2010.^[5]

History[link]

Flugfélag in the early decades[link]

The first Flugfélag Íslands Douglas DC-4, dubbed Gullfaxi, arriving at London Heathrow Airport in June 1953.

Icelandair traces its roots back to 1937, when Flugfélag Akureyrar was founded in Akureyri on the north coast of Iceland. Flight operations started in 1938 with a single floatplane of the type Waco YKS-7. In 1939 the airline had to be grounded when the aircraft was destroyed in a capsizing accident. The company moved to Reykjavík, were it acquired another Waco aircraft and was re-launched in 1940 as Flugfélag Íslands, which translates as Flight Company of Iceland.^[6] Previously, two unrelated airlines of the same name had existed in the country (from 1919 to 1920, and between 1928 and 1931).^[7] For international purposes, the name Iceland Airways was adopted.^[8]

The fleet was expanded with a Beechcraft Model 18 in 1942, and with two de Havilland Dragon Rapide^[9] as well as one U.S.-made Consolidated PBY Catalina in 1944, the latter being the first ever aircraft registered in Iceland to be flown to Iceland by an Icelandic crew from North America.^[10] On 11 July 1945, this aircraft operated the first commercial flight over the Atlantic Ocean for the airline, which led from Reykjavík to Largs in Scotland, with four passengers and four crew members on board. Regular flights to Prestwick Airport, Scotland and Copenhagen in Denmark, using B-24 Liberator aircraft leased from Scottish Airlines were launched in 1946.^[7]

In the same year, comfort and performance of domestic flights in Iceland could be improved with the introduction of the Douglas DC-3 Dakota. A total of six airliners of that type had been purchased, which remained in service with the airline until 1972, the oldest one being still flightworthy as of 2011.^[11] Until the late 1960s, Flugfélag concentrated mostly on domestic flights, where it initially faced fierce competition from Loftleiðir, another airline which had been founded in 1944. When a merger proposal of the Icelandic government was rejected by the two airlines, the domestic routes were split among them as a measure to ease competition. When Loftleiðir pulled out of the domestic market in 1952 to fully concentrate on international flights, Flugfélag became the main domestic carrier of the country.

International services stayed part of the business model of Flugfélag, though to a far lesser extent compared to Loftleiðir. In 1948, the Douglas C-54 Skymaster was introduced on those routes, and in 1957 two new Vickers 759 Viscounts were acquired, the first turboprop airliners to be operated by an Icelandic airline. In the 1950s, Flugfélag began to use the Icelandair branding for its international flights.^[8]

In 1967, Flugfélag was the first Icelandic airline to join the jet age, when a Boeing 727 dubbed Gullfaxi was put into service.^[12] Another 727 was acquired in 1971, and the aircraft type was operated until 1990.^[13] In 2008, the cockpit section of the "Gullfaxi" was put on display at the Icelandic Aviation Museum at Akureyri Airport, the original base of the airline.^[14]

Loftleiðir[link]

Another company called Loftleiðir had been formed in 1944 by three young pilots returning from their flight training in Canada. Their company, whose name roughly means "Skyways", concentrated on Icelandic domestic air services for the first few years.^[15] The first planes used were two Stinson Reliants, and then a Grumman Goose^[16] amphibious aircraft.

At first, Loftleiðir, like Flugfélag Íslands, concentrated on domestic air services. Loftleiðir began scheduled international operations in 1947.^[17]

By 1952, the Icelandic authorities were very worried that fierce competition between both Icelandic airlines would ruin both companies, and attempted to force a merger between them.^[18] This did not happen at the time, but instead the authorities split up the domestic routes between the two airlines.^[19] As a result, Loftleiðir ceased domestic flights in Iceland entirely, concentrating instead on international flights.^[18] Loftleiðir's pioneering low-fare services across the North-Atlantic then commenced in 1953.^[20] In a way, Loftleiðir can even be considered a sort of precursor of the low-cost carriers that started operating in the 1970s.^[21][22][23] This made them a popular airline for travel between Europe and North America.^[24]

The late 1960s were an exciting time for Loftleiðir.^[25] In 1969 the company acquired Air Bahama, a small airline operating out of the Bahamas, and a year later Loftleiðir became one of the founders of Cargolux, a cargo airline. Also in 1970, Loftleiðir entered the jet age with its first two Douglas DC-8 aircraft.^[26]

During those years, Loftleiðir were often referred to, even by the company's own staff, as "the Hippie Airline" or even "the Hippie Express".^[27][28] Loftleiðir were not famous for speed or punctuality, but flying with the company became a sort of rite of passage for those young "hippies", one of whom was Bill Clinton, later US President.^[29][30]

Merger with Loftleiðir[link]

During the 1970s energy crisis, the economic situation for both Flugfélag and Loftleiðir worsened. The government of Iceland initiated a new attempt to merge the two airlines, which could be realized in 1973 following lengthy negotiations.^[31] Especially the staff of Loftleiðir complained that Flugfélag, although smaller, would have gained the upper hand.^[32] A holding company called Flugleiðir was created, which combined the two companies and began to streamline staff and operations.^[33] At the time of the merger, two thirds of the passenger traffic of the airline were international transatlantic crossings, and Flugfélag's fleet of DC-3s and 727s was enlarged by DC-8s of Loftleiðir. In 1979, Flugfélag bought all of Loftleiðir's assets in Flugleiðir, and the airline became known by today's Icelandair.^[8]

Post-merger Icelandair[link]

A pair of Icelandair Douglas DC-8s at Luxembourg-Findel Airport (1983).

The Icelandair head office at Reykjavík Airport

The aircraft fleet of Icelandair remained mainly unchanged until the Boeing 757-200 became the new backbone for transatlantic flights during the 1990s. The domestic Fokker F-27s were replaced by F-50s and Boeing 737s deployed on European routes. The European hub at Luxemburg-Findel Airport had been taken over from Loftleiðir. Passenger count topped one million in 1995^{[citation needed]} as the company's business grew on a reputation as a "backpacker airline", similar to Loftleiðir, which had been referred to as "Hippie Airline" since the late 1960s. In the same year, it was begun to dismantle the Luxemburg hub in favor of today's decentralized European network, linking the largest cities non-stop to Reykjavík.^[34]

In 1997 the domestic operations of Icelandair, part of which had previously been operated under the Flugfélag Nordurlands branding, were combined with small airline Nordurflug to form the Air Iceland subsidiary,^[35] allowing mainline Icelandair to fully concentrate on international flights since then. In 1999, a new aircraft livery was introduced, as part of an image campaign designed to retire Icelandair's "backpacker" label in favor of an emphasis on business travel. From 2001, the Icelandair hub was moved to Keflavík International Airport. As Icelandair particularly focusses on flights to North America, the company was significantly affected by the airspace closure following the September 11 attacks in the same year.

The Flugleiðir holding was reorganized as Icelandair Group (for aviation business) and FL Group (for non-aviation finance and investment business) between 2002 and 2005,^[36] with Icelandair becoming the largest and most important of eleven subsidiaries. The wet-lease and charter department, which was founded in 2003, was named Loftleiðir Icelandic, thus re-introducing a familiar name.^[37]

Developments since 2005[link]

Icelandair was hit hard by the air traffic restrictions following the 2010 eruptions of Eyjafjallajökull, which resulted in large parts of the European airspace being closed down. The air travel disruption coincided with the start of the important summer season for the company. The in-house crisis management organization began assessing the situation once the scale had become known,^[38]. Triple-daily crisis meetings were held at the airline's headquarters. Icelandair tried to operate as many passenger flights as possible, keeping its hub at Keflavík open and diverting European flights to airports that were still open, such as Glasgow International Airport or Trondheim Airport. The eventual closure of Keflavík due to the volcanic ash cloud coincided with an improvement of the situation towards Europe, which allowed Icelandair to move its headquarters with 200 staff to Glasgow and operate flights from there for ten days,^[39][40] with shuttle flights to Iceland's Akureyri Airport and round-the-clock bus shuttles onwards to Reykjavík.

In the aftermath of the eruption, the government of Iceland launched the successful^[41][42][43] "Inspired by Iceland" campaign to regain confidence in travelling to Iceland for tourists and business people,^[44] of which Icelandair was a leading participant and initiator.^[39]

When the Grímsvötn volcano erupted in 2011, Icelandair once again had to cope with airspace closures in Europe, though this time to a lesser extent due to a higher level of political preparedness.^[45][46] Weekly newspaper The Economist claimed that Icelandair could even take advantage when catering for disaster tourists.^[47]

In February 2011 Icelandair was chosen "The Knowledge Company" of the year and Icelandair CEO Birkir Hólm Guðnason was picked as "Man of the Year" in the Icelandic business community.^[48] In both categories the panel of judges of the Association of Economists and Business Graduates in Iceland said that "the fine results of the company in the previous year showed both a high degree of skill and specialist knowledge within the company as well as excellent leadership."^[49] In October of the same year, the airline was awarded the title "Marketing Firm of the Year in Iceland", by a judging panel from IMARK, the Marketing Association in Iceland.^[50]

After having launched scheduled flights to Washington D.C. in 2011,^[51] Denver was announced as new U.S. destination for 2012, bringing the total number of cities served in the country up to seven, along with Boston, Minneapolis, New York City, Orlando and Seattle.^[52] Also in 2012, Icelandair plans to resume domestic services, with regular flights to link Akureyri to its Keflavík hub through its subsidiary company Air Iceland.

Inflight service[link]

Icelandair offers three booking classes: Economy, Economy Comfort and Saga Class (the latter being equivalent to business class).^[53] Free meals are only available in Economy Comfort and Saga Class, and a buy on board service is provided for Economy Class passengers.^[54]

Some of Icelandair's aircraft are equipped with a free of charge AVOD in-flight entertainment system that includes seatback, touch-screen monitors for each passenger.^[55] The airline claims to be especially children-friendly. As such, free meals, blankets, pillows and headsets are provided, and the inflight system hosts a selection of children movies.^[56]

Special Assistance is provided for travelling with pets,^[57] young travellers and infants,^[58][59][60] and Special Service, e.g. for blind people with seeing-eye dogs, expectant mothers, wheelchair service, POC systems.^[61]

Icelandair Info, the inflight magazine of Icelandair, is printed four times a year in Icelandic and English. First published in 2008, it is also the product catalogue for the airline's Saga Shop. The frequent flyer program of the airline is called Saga Club.^[62]

Destinations[link]

Icelandair flies from Iceland to 22 destinations in Europe and 9 in America. Some of those are seasonal. Additional destinations are offered on the basis of codeshare agreements with Scandinavian Airlines, Finnair,^[63] JetBlue Airways^[64] and Alaska Airlines.^[65]

Fleet[link]

An Icelandair Boeing 757-200 landing at Keflavik in 2007.

As of May 2012, the Icelandair fleet consists of the following aircraft, with an average age of 15.8 years:^[66]

Fleet history[link]

Over the years, the airline operated the following aircraft types:^[67][68]

Environmental policy[link]

Icelandair has adopted a strict environmental policy in keeping with Iceland´s image as an unspoiled country with clean air, water, sea and nature in general. The goal of this policy is to minimize Icelandair’s total environmental impact and to establish sustainable practices by optimizing the use of the resources at the company´s disposal.^[69] This is done in a variety of ways, from recyling paper in the company´s office to trying to create one of the "greenest" ground crews in the industry af Keflavik Airport to inviting passengers to participate in planting trees.^[70]

Accidents and incidents[link]

• On 29 May 1947, a Flugfélag Islands (as the airline was known at that time) Douglas C-47 Skytrain (registered TF-ISI) crashed near Hjedinsfjordur during a scheduled domestic flight from Reykjavík to Akureyri, killing the 21 passengers and four crew on board. To date, this remains the worst aviation accident in Iceland.^[71]
• On 31 January 1951, the 17 passengers and three crew members on board another C-47 (registered TF-ISG) were killed when the aircraft crashed into the sea off the Icelandic coast near Hafnarfjörður. The pilots were attempting to land the airplane at Reykjavík Airport in heavy snowfalls following a flight from Vestmannaeyjar, when radar contact was lost.^[72]
• On 14 April 1963, a Vickers Viscount (registered TF-ISU) crashed on approach of Oslo-Fornebu Airport. All 12 people on board were killed.^[73]
• On 26 September 1970, a Flugfélag Fokker F-27 Friendship (registered TF-FIL) crashed into a mountain near Vágar, Faroe Islands while approaching Vágar Airport following a scheduled passenger flight from Bergen, in what is known a controlled flight into terrain. Of the 34 people on board, seven passengers and one crew member were killed.^[74]
• On 15 November 1978, the Douglas DC-8 (registered TF-FLA) missed the runway upon approach of Colombo Airport in Sri Lanka during a chartered Hajj pilgrimage flight from Jeddah and crashed. 74 passengers and 5 crew members survived the accident.^[75][76] The disaster of Flight LL 001 (a Loftleiðir flight number, but the company had merged with Flugfélag at that time) with its 183 fatalities marks the by far worst accident in the history of Icelandic aviation.
• On 22 January 2002, the crew of Icelandair Flight 315, a Boeing 757-200 registered TF-FIO with 75 passengers on board, unintentionally entered a series of extreme manoeuvres during a go-around from a low altitude following an unstabilised approach^{[clarification needed]} into Oslo Airport, Gardermoen. During the incident the aircraft was subjected to load factors in excess of the design limits, culminating in a dive followed by a +3.59 g pull up manoeuvre clearing the ground by only 321 ft. The speed limit for the flap configuration was also exceeded. Control was regained and a second approach was flown with the aircraft landing safely. The airliner was permitted to proceed on its subsequent scheduled flights without a technical inspection being conducted until 13 March of that year when its manufacturer Boeing recommended further maintenance work after having evaluated the Flight Data Recorder. The Accident Investigation Board Norway, which led the investigation into the incident, made four safety recommendations, including one to the wider aviation community on operational procedures regarding discontinued approaches.^[77]

References[link]

External links[link]

	Iceland portal
	Aviation portal
	Companies portal

Wikimedia Commons has media related to: Icelandair

• Official website
• English website