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Captial Commitments

Capital commitments

Capital commitments

42.
The Company has entered into contracts with Boeing with an obligation to purchase 6 Boeing 737-800 aircraft in the year 2007. The intention is to lease or sell all of the aforementioned aircrafts.

43.
One of the Groups company, Icelandair Ground Services ehf., has paid ISK 60 million penalty to the Competition Authorities due to an alleged breach of the competition law. The case has been appealed and there is considerable chance that the amount will be returned in part or in full. The payment, which has not been charged to the Income Statement is entered among receivables in the Balance Sheet. The case is considered to be brought to court in 2008-2009



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