“It has developed from being a marketing vehicle operating in the international ACMI (Aircraft Crew Maintenance and Insurance) and charter markets, to serving as a capacity solution provider.”
Loftleiğir–Icelandic is a capacity solution company for the international passenger airlines and tour operator industries. Loftleiğir- Icelandic was formed as a subsidiary of FL Group in 2002, though international charter operations had been a part of the general operations of the airline and its predecessors for decades. It has developed from being a marketing vehicle operating in the international ACMI (Aircraft Crew Maintenance and Insurance) and charter markets, to serving as a capacity solution provider, thus expanding its horizon above the aircraft types traditionally operated under the Icelandair Air Operator’s Certificate. In early 2006, the company bought a majority of the shares in the Latvian charter operator LatCharter Airlines as part of Loftleiğir-Icelandic’s strategy to strengthen its position in the Baltic and CIS region and add the Airbus family into its worldwide ACMI product line.
The Company currently operates AM (Aircraft and Maintenance), ACMI (Aircraft, Crew, Maintenance and Insurance) and full charter contracts in Europe, Africa, the Middle East and North and South America. Furthermore, Loftleiğir-Icelandic has established itself as a business class operator serving one of the most prestigious operators in the US A, A&K (Abercrombie & Kent), by operating first-class flights around the world where all seats are business class. The Company has five Boeing 757-200 and three Boeing 767-300ER aircraft, all but one of which are operated under Icelandair’s AOC (Air Operator’s Certificate). In addition, the company has two Airbus 320 aircraft operated under the LatCharter Airline’s AOC.
Current market conditions are favourable, especially on the wide-body market due to a lack of aircraft availability. Thus, the wideranging aircraft market knowledge accumulated within Loftleiğir-Icelandic has put the company in a good position to meet demand. In mid-2003, the Company introduced its first wide-body aircraft by adding a Boeing 767 to its fleet, which opened up new markets. This led to an increase in the proportion of ACMI projects at the expense of all-inclusive projects, which has helped to increase profitability and reduce sensitivity to external fluctuations.
The company has been successful in establishing itself on the European market and enjoys increasing awareness internationally.
Loftleiğir-Icelandic is currently seeking to use its extensive market knowledge to widen its spectrum of services further with the objective of securing continued growth in revenue and profitability. In addition to the current charter and ACMI operations, the company has increased its brokering activities, both in terms of arranging for third-party dry and wet leases and in terms of aircraft brokering.