Icelandair Group‘s business concept is built on Icelandair‘s Route Network and on marketing Iceland as a year-round destination.
In 2016 the Group employed an average of 3,900 full-time employees, generated total revenues in excess of USD 1.3 billion and carried 4.0 million passengers on its international and regional flights.
Iceland´s uniquely central location between Europe and North America is the key to our hub-and-spoke network.
In 2017 the Route Network will connect 28 European airports with 18 North American airports through the Company's hub. The number of passengers in 2017 is projected at about 4.0 million, with 26 Boeing 757 narrow-body aircraft and 4 Boeing 767 wide-body aircraft serving the Route Network.
Focusing on route networks and tourism services
Reducing seasonality in the Group’s operations
Focusing on organic growth and business development
Achieving greater synergies between Group companies
Improving efficiency with special emphasis on continuous cost control
Icelandair Group’s strategy can be graphically illustrated in the shape of building blocks, rising in order to show our approach to the Company’s strategic development from the ground up. At the base is the day-to-day focus of our employees on current operations and at the top is our vision for Icelandair Group
The top three building blocks represent our long-term aspirations and corporate conduct. They are the core of our competitive advantage and determine how we structure our operations to leverage our strengths. In essence, they determine our strategic direction and serve as the lens through which we evaluate new projects and strategic initiatives.
The bottom two building blocks represent our short-term focus on profitable operation. They are revised annually and updated to capitalise on emerging short-term and long-term trends. The strategic initiatives are the engine that drives the long-term strategic direction of the Group and the goals provide us with important checkpoints along the way to monitor our progress.
Our vision statement encapsulates our aspirations. It is a powerful tool to rally all our stakeholders in a common future direction. It reflects our ambitions and quantifies our goals of unwavering commitment to connect Iceland.
The vision belongs to Icelandair Group as a whole, and all our employees contribute to its realisation. Through our goals and strategic initiatives we translate our aspirations into actions that can be measured and managed throughout the business cycle. The essence of our vision encompasses the focal points of our business concept of leveraging our strengths; to us, these points are much more than mere words on paper.
Icelandair Group has been at the forefront of devising a long-term strategy for Iceland as world-class destination, and through our investments in Icelandic tourism we have played a leading role in a sustained campaign of development and promotion that benefits not only our own operations but the entire Icelandic travel industry.
Steadily expanding Icelandair‘s Route Network, which has grown by 20 destinations from the year 2009, is the Group‘s key to enhancing Iceland’s position as an international connecting hub.
Our unique talent pool remains our primary source of strength, as our employees have proven time and again.
We depict our vision as a structure resting on three pillars: the growth of Icelandic tourism,
the growth of connecting VIA traffic and a combination of flexibility and experience.
Sustainable value creation for our shareholders and other stakeholders lies at the heart of our organisation. The best way for us to succeed in this effort is to maintain our traditional dedication and commitment to connecting Iceland by drawing on the strength of our operating pillars.
Taking a driving seat role in increasing tourism to Iceland across seasons from both existing and new markets
Network growth to strengthen Iceland hub Maintain short connection time at KEF through operational efficiency
Enable rapid reactions to disruptive factors: a structure and culture that foster adaptability and nimbleness
Our core values are grounded in the philosophy that guides our internal conduct as well as our external relations with our customers, partners, shareholders and other stakeholders.
For our costumers, employees, enviroment and shareholders
Through consistency, reliability, clear product alternatives and friendly service
Via teamwork, shared information and values, accontability and profitability
What Icelandair Group needs to do in order to survive in its competitive landscape is dictated by financial objectives which are universal and apply in all business operations. These objectives however, do not in themselves suggest business strategies, nor do they provide strategic direction. Through continuous strategic development, Icelandair Group seeks to continue to sustainably grow its profitable operations. We evaluate our effort by comparison with clear-cut short-term and longer-term financial and operational goals that we translate into our EBITDA projection, which is published quarterly.
Continued development with focus on higher quality and customer engagement in our hotel business
Expand and renew logistical infrastructure at our hub in Keflavik
Continue ISO 14001 enviromental standards implementation in all subsidiaries
Focus on corporate governance
Support and develop marketing initiative for more affluent customers
Develop and implement a CSR strategy for the Group
LEAN management initiatives to improve operational efficiencies
Icelandair Group is proud of its role in the Icelandic community and continues to seek new opportunities to expand its ties to society at large. That is how Icelandair Group energises the power of the Icelandic tourism industry for the benefit of Iceland as a nation.Read more
Icelandair Group’s objective is to manage and control risk exposures and keep them within acceptable limits, subject to optimised returns, by using derivatives and other available means. All risk management is carried out within guidelines set by the Board of Directors.Read more
Icelandair Group´s fleet comprised at the end of December 2015 a total of 43 aircraft, of which 35 were owned by the Company.