Tag Archives: Loftleidir Icelandic

Icelandair Group submits an offer to buy 51% of Cabo Verde Airlines

TACV-Cabo Verde Airlines Boeing 757-2Q8 D4-CBP (msn 30045) AMS (Ton Jochems). Image: 932908.

Loftleidir Icelandic’s subsidiary has submitted a binding offer for majority shares of Cabo Verde Airlines.

Loftleidir Icelandic, a subsidiary of Icelandair Group, will, together with Icelandic investors, submit a binding offer for a 51% of the shares in Cabo Verde Airlines on Cape Verde.

Authorities in Cape Verde and Loftleidir Icelandic have been cooperating for some time. In August 2017, Loftleidir Icelandic signed a management agreement with the Cape Verde Government on restructuring Cabo Verde Airlines.

The agreement also aimed to strengthen the international airport in Cape Verde, to develop the islands as a promising tourist destination and to build an international hub for connecting flights. Coinciding with the agreement, it was announced that the company was due to be privatised. Cabo Verde Airlines already has operating licenses to fly scheduled flights to Europe and the United States.

 

The purchase price is confidential. However, the acquisition would partly be paid for by the work already completed by Loftleidir Icelandic’s employees. The acquisition is made through a new company, Loftleidir Cabo Verde. Loftleidir Icelandic holds a 70% stake in the company, and other investors 30%. Loftleidir Icelandic’s acquisition of Cabo Verde Airlines does not have significant effect on Icelandair Group’s financial statements since Cabo Verde Airlines will not be reflected in the group’s consolidated financial statements. The share will classified as an associated company.

Árni Hermannsson, Managing Director of Loftleidir Icelandic:

“The participation in the acquisition of a majority share in Cabo Verde Airlines holds great opportunities for Loftleidir Icelandic, especially in light of the expected growth in passenger demand in Africa in the coming years. We have already participated in the restructuring of the company, and Cabo Verde Airlines’ operations are well suited to Loftleidir Icelandic’s projects around the world. The knowledge and experience already available within Loftleidir Icelandic and its sister companies has come to good use in restructuring the company and will continue to assist in further developments. Further opportunities are related to shared use of airplanes from Icelandair Group’s fleet, and crews where applicable, as is already being done in various projects. In developing connecting routes, we can also draw further on Icelandair’s experience. In the case of Cabo Verde Airlines, we have opportunities for well-organized connecting routes between Europe and South America on one hand, and West Africa and North America on the other, along with West Africa and Europe. The island’s location is ideal for developing connecting flights.”

Top Copyright Photo (all others by the airlines): TACV-Cabo Verde Airlines Boeing 757-2Q8 D4-CBP (msn 30045) AMS (Ton Jochems). Image: 932908.

Cabo Verde Airlines aircraft slide show:

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Icelandair to operate two Boeing 767-300s, Air Iceland to become a new Bombardier Q400 operator

Icelandair Group (Icelandair and Air Iceland) (Reykjavik) has announced Icelandair will operate two Boeing 767-300s. The Group has also announced plans to replace Air Iceland’s aging Fokker 50 fleet with newer Bombardier DHC-8-402 (Q400) aircraft. The Group issued this statement:

Icelandair Group logo

The Board of Directors of Icelandair Group has decided to update the fleet policies of the subsidiaries Icelandair and Air Iceland.

All five Fokker 50 aircraft that Air Iceland operates will be sold and three Bombardier Dash 8 Q400 will replace it. After that Air Iceland will operate five aircraft, three Bombardier Q400 and two Q200. The Q400 aircraft can seat 74 passengers while the Fokker 50 takes 50 passengers.

Air Iceland logo

The airline’s operations will be simplified and optimised as number of aircraft decrease and synergies will increase as all aircraft will be from the same manufacturer. As the Q400 is faster and has a longer range,

Air Iceland 3.2015 Route Map

Air Iceland Route Map: Air Iceland flies domestically in Iceland and adjacently to Greenland.

Air Iceland sees opportunities in new markets. The company will be better equipped to service the domestic market as the aircraft are larger and travel time will be shorter. The airline aims to increase the number of foreign tourists on board its aircraft going forward.

Icelandair logo-1 (LRW)

In 2015 Icelandair will operate 23 Boeing 757-200 that take 183 passengers and one 757-300 that takes 220 passengers. The company owns 22 of those aircraft and leases two that will be redelivered this autumn.

Above Copyright Photo: Boeing 757-208 TF-FIN (msn 28989) taxies at London (Heathrow). LHR is a likely place where the larger Boeing 767-300 would be utilized along with New York (JFK).

 

It has been decided that they will be replaced with two Boeing 767-300 aircraft that take 260 passengers that will be added to the route network as of the spring of 2016. Larger aircraft are more feasible due to high load factors on many routes all year round and limited number of landing slots on certain airports. The increase of the fleet in the last few years has made it more economical to have more than one size of aircraft in the fleet. The Boeing 767 aircraft is similar to the 757 in terms of maintenance and crew training and the airline has experience in operating that type.

 

Above Copyright Photo: Daniel White – Bruce Drum Collection. Icelandair is very familiar with the Boeing 767-300 as subsidiary Loftleidir Icelandic has been a past operator of the type. Boeing 767-3Y0 ER TF-FIA (msn 24953) taxies at Sanford (SFB).

Loftleidir Icelandic logo

Icelandair Group’s subsidiary, Loftleidir Icelandic, has operated 767 aircraft in leasing projects that have been maintained by Icelandair. The aircraft has longer range than the 757 which will create new opportunities for the route network.

It has not been decided whether the new aircraft will be purchased or leased.

Bjorgolfur Johannsson, President and CEO of Icelandair Group: “Operating one type of aircraft has been very economical for Icelandair but when the route network and the fleet reaches a certain size it becomes more feasible to have a broader range of aircraft in the fleet. High load factors all year round and limited number of landing slots on certain airports also support this decision. In terms of Air Iceland a simpler and more economical fleet will make the operations better as crew training will be simpler.

We foresee further growth opportunities in the coming years with these changes to the fleet policy for passenger aircraft. Both the Boeing 767 and Q400 aircraft can service markets that the current fleet cannot, which will enable us to go into new markets and connect them to the current route network.”

Top Copyright Photo: Wingnut/AirlinersGallery.com. The five Fokker F.27 Mk. 050s (Fokker 50s) will be sold. Flugfelag Islands-Air Iceland Fokker F.27 Mk. 050 TF-JMO (msn 20205) lands at the Reykjavik (RKV) base.

Air Iceland aircraft slide show: AG Airline Slide Show

Icelandair aircraft slide show: AG Airline Slide Show

Air Iceland video:

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