ICELAND EXPRESS INVESTORS MAKE STERLING MOVE

Low fare airline Iceland Express’s new owners have acquired control of Scandinavian airline Sterling for £40 million.

The purchase was made by Fons Eignarhaldsfelag, an investment group controlled by Palmi Haraldsson and Johannes Kristinsson, who hold major shares in a number of UK companies, including The Big Food Group, Goldsmiths and Julian Graves. This development means that the pair now control the largest airline group in Iceland, overtaking Icelandair’s historic monopoly of the country’s aviation industry.

Iceland Express first challenged Icelandair’s hold on the London – Reykjavik and Copenhagen - Reykjavik routes back in February 2003, making the country much more accessible by introducing fares at up to 80% cheaper than the competition. Despite a price war, Iceland Express has since carved their own share of the market, maintaining their position where others, including GO had failed.

Whilst Iceland Express currently only challenges three of Icelandair’s routes, the Sterling partnership will certainly give the group greater reach into other European destinations. Haraldsson and Kristinsson held significant shares in Icelandair up until 2004, when they sold out to purchase Iceland Express.  

Whilst no formal decision has been made as to how the two airlines will co-exist, the move is aimed at strengthening the Iceland Express operation, which has recently added Frankfurt to its route portfolio. Commenting on the news, Almar Örn Hilmarsson, Managing Director at Iceland Express says. “Whilst the relationship between Iceland Express and Sterling is still being discussed, I can confirm that Iceland Express will try to utilise Sterling’s sales system and develop marketing links to promote their routes.

Since the takeover of Iceland Express earlier this year, new management team headed by Hilmarsson have streamlined the operation and created new opportunities for UK sales agents, introducing net fares for preferred partners on all flights using a simple online booking process. Hilmarsson commented. “We are looking to build relationships within the UK travel trade and maintain Iceland’s new found accessiblity by offering previously unavailable prices.”

Iceland Express is a no frills airline, with no length-of-stay restrictions, e-tickets are sold over the Internet and it’s very easy to change ticket dates and names. Fares to Iceland start at £123 return from London Stansted, DKK 1.276 from Copenhagen and EUR 160 from Frankfurt Hahn, including taxes.
Passenger Reservations: 0870 240 5600
Trade Enquiries: 0870 8501 007
Website: www.icelandexpress.com