scope of operations

At Akureyri Airport, Norlandair has regular scheduled flights within Iceland and scheduled and chartered flights to Greenland. These flights were severely curtailed during the year, and overseas flights from Akureyri were virtually non-existent. Circle Air offers chartered and sight-seeing flights from Akureyri. In addition, the Akureyri Aviation Academy (Flugskóli Akureyrar) is based at the airport. Air Iceland Connect is responsible for ground handling services at Akureyri Airport.

Akureyri Airport is the centre for Iceland’s ambulance flights, as the Mýflug airline has an agreement thereto with the Ministry of Health. The travel agency Voigt Travel, in collaboration with the aircraft operator Transavia, offered chartered flights from the Netherlands to Akureyri, twice a week from February to March. The plan was to continue with the flights into the summer, but these were cancelled as of March due to Covid-19. There were chartered flights from Akureyri to Tenerife at the beginning of the year. In addition, chartered flights to the Faeroe Islands were also operated.

At Egilsstaðir, Air Iceland Connect deals with ground handling services for private and leased aircraft. There were, however, no chartered flights from Egilsstaðir this year.

Reykjavík Airport has two runways (1,567 and 1,230 m long), Akureyri Airport has one (2,400 m) and Egilsstaðir Airport has one (2,000 m). Other airports and landing sites have runways ranging from 634 m to 1,887 m in length.

INTERNATIONAL FLIGHTS AT regional AIRPORTS

The past few years have seen considerable collaboration between the marketing centres in North and East Iceland. Isavia Regional Airports and Íslandsstofa (Promote Iceland) worked together during the year on a project initiated by Flugþróunarsjóður (the Flight Development Fund) to strengthen the marketing of airports in Northeast Iceland. The results of the project showed that there were opportunities for even greater collaboration and that the airports could be marketed as two options for direct access to unique natural environs and wide open spaces. Isavia Regional Airports and Íslandsstofa will continue with this project and advertise the airports, the infrastructure and services available, while the role of the marketing centres will continue to be to advertise the destinations and goods availability and to prepare to receive future guests.

An important step was taken in 2018 when the British travel agency Super Break launched flights to Akureyri with groups of tourists from the UK. Flights were operated for three months in early 2018 and then from New Year 2018/19 through to March 2019. The flights were popular, but unfortunately, the company suffered a stoppage of operations in August 2019 and their planned schedule for winter 2019/2020 did not, therefore, materialise. The travel agency Voigt Travel was responsible for 16 flights between Akureyri and Rotterdam during the 2019 summer season. These flights have been considerably well received. In February 2020, the company again began selling flights between Akureyri and Rotterdam, which lasted to 9 March, but the company had to cancel its summer schedule due to the pandemic.

PASSENGER AND TRAFFIC FORECASTS

Isavia compiles a traffic forecast at least once a year for the company’s core operations for passenger numbers at Keflavík Airport and for traffic in Icelandic airspace.

Traffic in the Icelandic air traffic control area is assessed in accordance with information from a working group entitled the Economic Financial Forecasting Group (EFFG). The working group, which prepares a forecast for air traffic over the North Atlantic, is made up of all service providers and representatives of associations using the service in the North Atlantic.

The passenger forecast for Keflavík Airport is usually compiled at the end of each year for the coming year and is published in November or December. The forecast was issued rather late due to uncertainties regarding the use of the 737 MAX aircraft of Icelandair, as these had all been grounded.

By mid-March, however, all forecasts were obsolete due to the pandemic. This meant that it was only possible to rely on in-house passenger forecasts during planning, and no real public forecast was issued. In a normal year, the company relies on the booking status of aircraft operators, flight schedules and extensive information exchange with the airlines. Due to the uncertainties, these aspects have not been available and passenger statistics therefore garnered to some extent from information provided from the airlines and the experience and knowledge gained in recent years.

VALUE CREATION

Isavia is a company that plays an important role both community-wise and in an economic sense. Isavia’s airports, especially Keflavík International Airport, create value for the community and the economy, both in Iceland and elsewhere in the world. Direct flight connections are extremely important. The more direct connections by flight from Iceland to the main cities of the world, the easier it is for Icelandic companies and private persons to engage in business overseas and export goods and seek international experience. In addition, they increase the interest of overseas companies to begin operations in Iceland. An analysis has been carried out in Europe which indicates that an increase in flight connections of 10% produces 0.5% economic growth.

Airports are important business centres and directly and indirectly strengthen the creation of economic and social value for the communities that their operations touch. Being located close by an airport allows companies and their value chains to enjoy the benefits of their close proximity and directly and indirectly support positive economic developments for such areas.

Isavia has, through e.g. the preparation of its Masterplan to 2040, examined the possibility of constructing, in the operating area of the airport, an Airport City. There are numerous opportunities that arise from creating an Airport City. This consists of the area that covers the airport, the terminal, cargo areas, office buildings, shops and services as well as hotels. The area could support the development of operations, both flight-related and non-flight-related, and enjoy the benefits of being located near an international airport with strong flight connections to gain a competitive edge. Clear policies towards such goals can result in an increase in goods and services transactions, attract increased foreign investment in Iceland, increase the number of valuable jobs and increase the prosperity of all Icelanders

A total of 537 employees work in the largest operation unit of Isavia at Keflavík Airport. In addition, hundreds of employees work in other companies that have operations in direct connection with the airport. Approximately 163 companies have long-term access authorisations to Keflavík Airport. These are companies or public bodies with facilities within the airport and the companies that provide them with services.

Isavia’s contribution to the community consists of a range of different elements. Some of Isavia’s contributions are in the form of taxes and public levies that the Group pays or collects, together with matching contributions to employee pension funds.