Icelandair Group
Icelandair Group
Official Airline
Icelandair Group has been listed on the NASDAQ OMX Iceland since 2006. The Group is moving from being a holding company and has redefined itself as an operating company with subsidiaries focused on the international airline and tourism sectors. This marks a major strategic shift for the Group going forward.
The Group has two main business areas:
Route Network: This business segment is focused on the well-established international and domestic route networks based on the Hub and Spoke concept that the Group has developed for the last decades.
Tourism Services: With focus on support to the route network as well as offering value-added service to tourists in Iceland and Icelanders travelling abroad.
Icelandair
A key component on the scheduled airline side of Icelandair Group, Icelandair aims to be the preferred airline to and from Iceland and an attractive choice for North Atlantic travel.
Icelandair has built up an international route network with Iceland, a sparsely populated island in the North Atlantic, as a hub, connecting 15-20 European cities to 5-8 North American cities.
The network is based on a 24 hour rotation with aircraft departing Iceland early morning for Europe, returning in the late afternoon and then leaving for Canada and USA in the early evening. These then arrive back in Iceland early the following morning and the process is repeated. In 2009 Icelandair introduced Stavanger and Seattle into the network and began services to Brussels, Belgium, and Trondheim, Norway, in spring 2010. Services to Washington, US, Billund, Denmark, Gothenburg, Sweden, Hamburg, Germany, and Alicante in Spain will begin in spring 2011.
Icelandair is increasing capacity in its network by 17% in 2011 from the year before, carrying an expected 1,7 million passengers.
Air Iceland
Air Iceland is a market-driven service company offering eight scheduled domestic destinations, as well as routes from Iceland to the Faeroe Islands and Greenland.
Icelandair Cargo
Icelandair Cargo bases its business on scheduled services between Iceland, Europe and North America supported by charters and wet leases (ACMI). In addition to marketing and selling space on its own freighters, Icelandair Cargo sells the cargo hold space on Icelandair´s passenger aircraft. Icelandair Cargo network includes 30 destinations.
Icelandair Cargo is the leading carrier to and from the Icelandic market. The company offers its customers competitive and quick global services through extensive interline and special pro-rate agreements with other airlines. The operation is supported with trucking network in Europe and in the USA.
70% of the revenues are generated by the cargo operation and then the rest 30% is coming from the ACMI operation. Export is the most important resource of the company but almost 38% of its revenue is expected to be generated by export. About ninety per cent of the exports consist of fresh seafood, whereas the imports are produce, high-tech products and spare parts. For a number of years, Icelandair Cargo has carried express freight for TNT, DHL and FedEx to and from Iceland.
Icelandair Hotels
Icelandair Hotels is the largest and the leading hotel company in Iceland. The company runs and franchises two hotel chains: Icelandair Hotels, a chain of 3 and 4 star hotels, and Hotel Edda, a chain of summer hotels with a total of 1,500 rooms, which are located all around the country. In 2007 Nordica, the flagship, was separated from IH hotels and a franchise agreement was signed with Hilton International.
The market environment is dominated by a steadily growing last-minute booking trend. The Internet plays a bigger role than before, resulting in a higher yield per guest. The Hilton brand gives Icelandair Hotels access to valuable resources and customers, which are intended to be utilized to the fullest, especially in the field of meetings and conferences. Furthermore, the company's leading position in the domestic market has secured for its flagship hotel, the Hilton Reykjavík Nordica, an excellent reputation and a high level of satisfaction in the very demanding local corporate market.
