Feb 27 • 20:57 UTC 🇮🇸 Iceland Visir

"I am not ruling anything out, everything is on the table"

The Icelandic Minister of Transport, Eyjólfur Ármannsson, has not ruled out accepting Icelandair's proposal for domestic flights despite it being significantly over budget.

Eyjólfur Ármannsson, Iceland's Minister of Transport, stated that while he has not made a definitive decision regarding Icelandair's recent bid for scheduled flights between Ísafjörður and Reykjavík, all options are currently on the table. This proposal is the only one received, amounting to 3.5 billion Icelandic króna, which is over 2 billion króna higher than the planned budget from the Road Administration. This discrepancy has raised concerns about the feasibility of such a contract.

The CEO of Icelandair explained that the proposal is based on their experience with domestic flights and includes a four-year agreement that needs to account for fluctuations in fuel prices and other risks. Icelandair had previously announced plans to discontinue flights to Ísafjörður due to restrictions related to aircraft sizes that can land on the runway. This situation highlights the challenges faced by regional flights in Iceland, where operational costs and infrastructure limitations play a significant role in determining the sustainability of such services.

The Road Administration must carefully consider the terms of the contract and assess the possibility of issuing a different tender as well. The Minister's openness to options indicates a potential willingness to negotiate terms that could make the flights feasible while also considering the budget constraints. This development will be closely monitored by both local stakeholders and the public, as the outcome may have significant implications for transport connectivity in the region as well as the local economy.

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