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Icelandair - How Are They Doing?  
User currently offlineAdicool From Netherlands, joined Apr 2007, 302 posts, RR: 0
Posted (6 years 2 months 2 weeks 4 days 15 hours ago) and read 9040 times:

A lot of airlines post losses these days and most analysts say, that smaller European airlines won't be able to survive on their own due to the high oil prices.
So I got to thinking about Iceland Air. I know they are a very small airline and that through there geographical position shouldn't be compared with let's say OS or AZ, but I wonder if they will be able to continue to be an independent carrier in the next years. They aren't even member of own of the big alliances.
Any news on how there are doing and if there are in talks with other major airlines to cooperate? Are flight from KEF high yields?

48 replies: All unread, showing first 25:
 
User currently offlineCO 757-300 From Switzerland, joined Oct 2001, 329 posts, RR: 0
Reply 1, posted (6 years 2 months 2 weeks 4 days 14 hours ago) and read 8992 times:

i'd also like to know which portion of their business is o&d as opposed to USA-KEF-Europe & vice versa.
i have often heard about people flying on them via iceland because they are cheaper, but i rarely see them as the cheapest route across the pond.


User currently offlineAf773atmsp From United States of America, joined Aug 2006, 2698 posts, RR: 1
Reply 2, posted (6 years 2 months 2 weeks 4 days 14 hours ago) and read 8956 times:

Icelandair is suspending MSP-KEF from October to March 2009. Hopefully it won't end completely.


It ain't no normal MD80 its a Super 80!
User currently offlineBOStonsox From United States of America, joined Dec 2007, 1990 posts, RR: 0
Reply 3, posted (6 years 2 months 2 weeks 4 days 13 hours ago) and read 8902 times:

I know BOS has enough O&D for Iceland, and we were one of the first airports they served. From what I've heard FI is doing fine. Keep in mind that Iceland itself is small, with only 300,000 people. That is slightly less than the entire city of Minneapolis. If MSP-KEF disappeared, it would leave only BOS, JFK, and Sanford as their only destinations in the USA. I'm surprised that MSP-KEF is being suspended because of the Scandinavian population in Minnesota. Of course, having a large Scandinavian population doesn't necessarily mean it has enough O&D for Scandinavia.


2013 World Series Champions!
User currently onlineFlighty From United States of America, joined Apr 2007, 8655 posts, RR: 2
Reply 4, posted (6 years 2 months 2 weeks 4 days 12 hours ago) and read 8854 times:

Icelandair is probably just fine. They have a history of extremely well managed and very stable.

Quoting CO 757-300 (Reply 1):
i have often heard about people flying on them via iceland because they are cheaper, but i rarely see them as the cheapest route across the pond.

As you know, this suggests they are attracting plenty of passengers to fill the seats already, if they are not needing to offer the lowest prices.


Icelandair has some unique attributes. They have the advantage of linking the USA and Europe with extremely low-CASM and fuel efficient 757 aircraft thanks to Iceland's ocean location. This location has always helped them. So, for example BOS-KEF-MXP can be done with a 757 or narrowbody with excellent CASM. They are kind of like the freighter companies that stop at ANC or DXB for fuel. It is operationally very efficient to stop midway in these longhaul flights. So they can link a lot of markets on 757 that nobody else can.

Icelandair operates 16 757-200s including 3 package freighters, and 1 757-300.

Quoting from their 1Q investor report, "We are in the process of adapting the companies within Icelandair Group to the
new reality through streamlining and improved flexibility. We have simplified
the structure of the Group, and Sigþór Einarsson becomes the Groups´ deputy
CEO. The recently appointed CEO of Icelandair, Birkir Hólm Gudnason, has
already made changes in Icelandair and there are further changes ahead. An
agreement has been concluded on leasing the first Boeing 787 Dreamliner that
the company has on order. Icelandair Cargo growth plans have been discontinued.
A decision has been made for the company to re-enter the travel agency market.
Short-term wage contracts have been negotiated with airline staff.

Through these and other actions we are solidifying our core operations,
reducing risk and strengthening Icelandair Group for the future."


User currently offlineMAH4546 From Sweden, joined Jan 2001, 33083 posts, RR: 71
Reply 5, posted (6 years 2 months 2 weeks 4 days 12 hours ago) and read 8848 times:



Quoting BOStonsox (Reply 3):
I know BOS has enough O&D for Iceland, and we were one of the first airports they served.

Like Minneapolis, New York, and Sanford, the Boston flight relies on connections. Very little of the traffic is O&D. Boston probably doesn't even have enough O&D to Iceland to fill an ERJ-135.



a.
User currently offlineBurnsie28 From United States of America, joined Aug 2004, 7557 posts, RR: 8
Reply 6, posted (6 years 2 months 2 weeks 4 days 12 hours ago) and read 8819 times:



Quoting Af773atmsp (Reply 2):
Icelandair is suspending MSP-KEF from October to March 2009. Hopefully it won't end completely.

It was the same way last year too.



"Some People Just Know How To Fly"- Best slogan ever, RIP NW 1926-2009
User currently offlineCityofAthens From , joined Dec 1969, posts, RR:
Reply 7, posted (6 years 2 months 2 weeks 4 days 7 hours ago) and read 8620 times:

I seriously doubt the Icelandic govt would allow the airline to go under, in the extreme case. Few other airlines have shown any interest in serving the country for obvious reasons, and it is doubtful that they would move in if the national airline disappeared.

Good to hear that despite this, they are getting on with doing the best they can under the circumstances.

With regards to cheap trans-Atlantic fares, I have heard this before but as others have said, I have never seen FI offering the cheapest fare, rather a US or UK airline, typically from LHR (probably because of the intense competition between those 2 markets). It's a shame because it would definitely make an interesting stopover.


User currently offlineAdicool From Netherlands, joined Apr 2007, 302 posts, RR: 0
Reply 8, posted (6 years 2 months 2 weeks 4 days ago) and read 8310 times:

I think the position of KEF could become quite interesting in the future with more flight over the North pole to Asia. I know the FI and KEF could sustain such flights on their own, but if they were active in *A for example, I could see some good cooperation with SK. Does anyone know if FI is planning any alliance in the near future or if they want to continue to be an independent carrier - obviously they are doing quite well so, but KEF could definitely be something like DXB or SIN for Northern Europa (in a much smaller context of course). They could work there geographical position more than they already do.

Just my 0.02$


User currently offlineMCOflyer From United States of America, joined Jun 2006, 8683 posts, RR: 16
Reply 9, posted (6 years 2 months 2 weeks 3 days 19 hours ago) and read 6991 times:

I know for sure the SFB flights are almost always full.

Hunter



Never be afraid to stand up for who you are.
User currently offlineBOStonsox From United States of America, joined Dec 2007, 1990 posts, RR: 0
Reply 10, posted (6 years 2 months 2 weeks 3 days 18 hours ago) and read 6848 times:



Quoting MAH4546 (Reply 5):
Like Minneapolis, New York, and Sanford, the Boston flight relies on connections. Very little of the traffic is O&D. Boston probably doesn't even have enough O&D to Iceland to fill an ERJ-135.

The way I'm seeing this is that while you won't be able to fill a plane with solely O&D, there are enough pax to fill a plane where combined with connecting pax you have enough. Without local traffic or connecting traffic the route wouldn't work. That to me seems to be why ORD, for instance, doesn't have flights to Iceland. Chicago may have a lot of O&D for Europe where FI could connect pax at KEF, however there isn't enough local traffic to fill it up to be profitable enough. I could be wrong for other reasons, though.



2013 World Series Champions!
User currently offlineViscount724 From Switzerland, joined Oct 2006, 25699 posts, RR: 22
Reply 11, posted (6 years 2 months 2 weeks 3 days 18 hours ago) and read 6693 times:



Quoting Adicool (Reply 8):
I could see some good cooperation with SK.

SK and FI applied for and were granted U.S. antitrust immunity in 2000, so they are free to do almost anything in terms of joint operations, pricing, codesharing etc. to/from the USA.


User currently offlineAndaman From , joined Dec 1969, posts, RR:
Reply 12, posted (6 years 2 months 2 weeks 3 days 17 hours ago) and read 6569 times:



Quoting Viscount724 (Reply 11):
SK and FI applied for and were granted U.S. antitrust immunity in 2000, so they are free to do almost anything in terms of joint operations, pricing, codesharing etc. to/from the USA.

Also AY codeshare with FI, KEF-HEL on FI metal, targeting the Asian tourists especially.

Quoting Adicool (Reply 8):
KEF could definitely be something like DXB or SIN for Northern Europa (in a much smaller context of course)

HEL working on that already ,)

How about FI joining any alliance?


User currently offlineSwatpamike From United States of America, joined May 2004, 581 posts, RR: 0
Reply 13, posted (6 years 2 months 2 weeks 3 days 16 hours ago) and read 6346 times:

Hello All

I flew twice on them both times JFK-KEF-LHR. Both times I noticed the amount of freight waiting to be loaded on all legs. I wonder if they really need pax to make money.

Cheers

swatpamike


User currently offlineSEPilot From United States of America, joined Dec 2006, 6971 posts, RR: 46
Reply 14, posted (6 years 2 months 2 weeks 3 days 15 hours ago) and read 6143 times:

Since they are the only airline serving Iceland fares to and from Iceland are much higher than fares from Europe to the US and vice versa. I know about it because I had an Icelandic son-in-law for a few years and my daughter filled me in on the details. If you wanted to stay for a day or two in Iceland and continue on, the fare was reasonable. But any lengthy stay in Iceland would cost you.


The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
User currently offlineAndaman From , joined Dec 1969, posts, RR:
Reply 15, posted (6 years 2 months 2 weeks 3 days 15 hours ago) and read 6121 times:



Quoting SEPilot (Reply 14):
Since they are the only airline serving Iceland

You mean the only one to US?
To Europe there are more choices, the local IcelandExpress and a couple of European airlines.


User currently offlineVasu From United Kingdom, joined Apr 2005, 3943 posts, RR: 0
Reply 16, posted (6 years 2 months 2 weeks 3 days 12 hours ago) and read 5985 times:

Any real-life photos available of their new interiors yet?

User currently offlineN383PA From United Kingdom, joined Aug 2007, 104 posts, RR: 0
Reply 17, posted (6 years 2 months 2 weeks 3 days 7 hours ago) and read 5879 times:



Quoting Vasu (Reply 16):

Try the following websides for the new seats:

www.icelandair.co.uk

click on new look

www.icelandairgroup.com

for finacial news and information about all companies


User currently offlineSEPilot From United States of America, joined Dec 2006, 6971 posts, RR: 46
Reply 18, posted (6 years 2 months 2 weeks 2 days 15 hours ago) and read 5574 times:



Quoting Andaman (Reply 15):
You mean the only one to US?
To Europe there are more choices, the local IcelandExpress and a couple of European airlines.

I did not realize that there were other choices to Europe; I do know that they are the only one to the US.



The problem with making things foolproof is that fools are so doggone ingenious...Dan Keebler
User currently offlineMu2 From United States of America, joined Jan 2004, 210 posts, RR: 0
Reply 19, posted (6 years 2 months 2 weeks 2 days 14 hours ago) and read 5502 times:

Why do they go to SFB and not MCO? Does it have to do with fees?

User currently offlineAndaman From , joined Dec 1969, posts, RR:
Reply 20, posted (6 years 2 months 2 weeks 2 days 13 hours ago) and read 5472 times:



Quoting SEPilot (Reply 18):
I did not realize that there were other choices to Europe

Yes this summer there were surprisingly many airliners actually, like LH, SK, AB, Germanwings etc, according to the Keflavik website.

An Icelandic LCC IcelandExpress is interesting, they have several destinations in Europe, would like to try them myself:
http://www.icelandexpress.com/


View Large View Medium
Click here for bigger photo!

Photo © David Townsend - DavidTownsendImages



User currently offlineCadet57 From United States of America, joined Jul 2005, 9085 posts, RR: 30
Reply 21, posted (6 years 2 months 2 weeks 2 days 13 hours ago) and read 5467 times:



Quoting Af773atmsp (Reply 2):
from October to March 2009



Quoting Af773atmsp (Reply 2):
Hopefully it won't end completely.

That is a pretty good indicator its a seasonal suspension.

Quoting MCOflyer (Reply 9):
I know for sure the SFB flights are almost always full.

Does not mean the flight is profitable.



Doors open, right hand side, next stop is Springfield.
User currently offlineFlyDreamliner From United States of America, joined Jan 2006, 2759 posts, RR: 15
Reply 22, posted (6 years 2 months 2 weeks 2 days 13 hours ago) and read 5442 times:



Quoting BOStonsox (Reply 3):
I'm surprised that MSP-KEF is being suspended because of the Scandinavian population in Minnesota. Of course, having a large Scandinavian population doesn't necessarily mean it has enough O&D for Scandinavia.

It's a winter thing. Fewer tourists in winter. Firstly, Scandinavia isn't that great to visit in the months when it has like 7 hours of daylight, and most in MN are heading southward in that season. We're losing our CDG flight for winter too. C'est la vie.

As for summer, it's like a holy pilgrimage thing - Minnesotans, a great number of whom are of scandinavian heritage, have to go there, often more than once. Denmark and Norway are places I'm kind of obligated to go to...

Icelandair caries a lot of MSP to europe traffic over the summer.

I think it's a strong city for connections to scandinavia. Heck, i bet they could even swing a 3x weekly 767 MSP-CPH or MSP-OSL or something like that, between hub feed and O and D, DL could do well next summer.



"Let the world change you, and you can change the world"
User currently offlineN383PA From United Kingdom, joined Aug 2007, 104 posts, RR: 0
Reply 23, posted (6 years 2 months 2 weeks 2 days ago) and read 5228 times:

Tried to gather some information regarding FI winter and coming summer schedule:

This winter FI will only operate 7 aircraft (757) instead of 11 in the summer. As far as I understood the 757-300 is not operating for FI this winter and might be leased out.

KEF-BOS DAILY
KEF-JFK DAILY
KEF-SFB 3 X WEEK

KEF-ARN DAILY
KEF-OSL 8 X WEEK
KEF-CPH 16 X WEEK
KEF-AMS 4 X WEEK
KEF-FRA 4 X WEEK
KEF-CDG 2 X WEEK
KEF-LHR 13 X WEEK
KEF-MAN 2 X WEEK
KEF-GLA 2 X WEEK

SUMMER 2009 as planed for now:

KEF-YYZ 5 X WEEK
KEF-YHZ 2 X WEEK
KEF-MSP DAILY
KEF-BOS DAILY
KEF-JFK DAILY

KEF-HEL 4 X WEEK
KEF-ARN DAILY
KEF-OSL 8 X WEEK
KEF-CPH 28 X WEEK
KEF-AMS DAILY
KEF-FRA DAILY
KEF-CDG DAILY
KEF-SXF 3 X WEEK
KEF-MUC 2 X WEEK
KEF-LHR 2 X DAILY
KEF-MAN 2 X WEEK
KEF-GLA 3X WEEK

For the summer 2009 schedule there are still mediteranean destinations missing and due to the nature of north atlantic traffic the amount of flights will vary in the summer month of june,july and august.

regards

N383PA


User currently offlineHumberside From United Kingdom, joined Dec 2005, 4927 posts, RR: 4
Reply 24, posted (6 years 2 months 2 weeks 1 day 22 hours ago) and read 5116 times:

Is SFB axed for Summer 2009 then, or just not loaded yet? Is KEF-MXP returning as well?


Visit the Air Humberside Website and Forum
25 Vinniewinnie : Flew with them from STN mid July and to be honest they are just your usual LCC! The only bonus is that u get to fly a MD 90 which unlike any other pl
26 BOStonsox : That's funny, I've always thought of it as being a winter destination. A place like the Blue Lagoon, especially, would be, since who would go bathing
27 Vasu : Out of interest, does FI get a lot of connecting traffic from western Europe to Orlando? Have looked at London to Orlando flights a few times now, hop
28 Planenutz : For while last year, wasn't FI offering flights to St. Peterburg (Pulkovo)? They were very quiet about this and I never saw any promotions or adverts.
29 FlyDreamliner : I have to imagine that the 767-300ER was expensive to operate as a fleet type of one aircraft, and that probably made the flight yet harder. SFO is co
30 VinnieWinnie : Well not really! What's the point of going to a country in the winter where it is freezing cold + where you only have 5 hours of daylight! In June-Ju
31 AustrianZRH : As one learns in the first physics lecture, and in all other sciences: no value is complete without a unit. And as there are 3 types of degrees out t
32 VinnieWinnie : Absolutely my bad! Mmm ok but 1) U get bored of your bath after a while.. 2) U'd probably get bored of the Aurora Borealis after a while as well! Tha
33 Af773atmsp : Plane spotting at KEF? Although it would be night time, but you can listen to the jets. I would like to go to Iceland in the winter. How much snow do
34 CityofAthens : Iceland in Summer: Cold Iceland in Winter: Freezing
35 Babybus : It is interesting to see that FI have 13x flights to LHR while BA has none at all. The fact that the KEF flight was moved to LGW and now stopped must
36 Pnwtraveler : Iceland Air has some radio ads running in Toronto. Nice to see them here on their summer service.
37 CityofAthens : It wasn't moved to LGW; it started and ended there. A complete waste of money and resources, I'm surprised BA even bothered to try.
38 Vasu : I believe they used to have gazillions of adverts on the London Underground advertising flights to Iceland and the US... (think I remember that corre
39 BOStonsox : 25 degrees Celcius? That's 77 degrees Farenheit. The official website for the Blue Lagoon says the temperature is 98-102 degrees Farenheit, closer to
40 Babybus : If FI can utilize two 757's a day on the route I'm sure BA guessed they could fill one of their old 737's. But for some reason they couldn't. Who exa
41 Post contains images CityofAthens : How on earth is a single 737 from LGW , with few connections possibilities, able to cope competing with 2 x 757s daily from LHR to such a limited mar
42 BOStonsox : Really? I keep hearing the opposite. Maybe this fluctuates over time.
43 413X3 : Is their cargo division not doing well? Why are they canceling the expansion of it?
44 Andaman : Reykjavik is expensive for sure, with Oslo the most expensive city in the Nordic countries and in the very top in Europe. Anyway, Iceland is great pl
45 Adicool : KEF is expensive, more than London and Zürich for example, but still somewhat affordable...Oslo on the other hand made me lose three stones in three
46 Argonaut : Well, for a long, long time, they certainly were the cheapest. It goes back decades, to when Loftleidir were "the backpacker's airline." Even in fair
47 Planenutz : Babybus, I remember seeing a lot of adverts in the tube stations several years back. They said "The coolest way across the Atlantic." They were especi
48 Babybus : As noted I don't live in Scotland. That explains the first one. There has been no tube advertising in memorable history. Re: Cost of Reykjavik I am s
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