Iceland's spending spree extends to Astraeus

The appetite for aviation acquisitions among Iceland's hungry investment community has again been highlighted with the purchase by Swedish budget carrier FlyMe of a majority stake in UK charter operator Astraeus.

The Icelandic link in this deal comes from investment company Fons Eignarhaldsfelag, which has a 20% stakeholder in FlyMe. It also owns Iceland Express, another low-cost carrier.

FlyMe says there are plenty of synergies to be gained from moving aircraft efficiently around the three carriers. It has a network of European routes from its Gothenburg base. Astraeus meanwhile flies to leisure destinations in Europe and Africa.

As the award-winning article Northern Raiders, written by Gunter Endres in the February 2006 issue of Airline Business, explains, Icelandic investors have been extremely active in the aviation market in recent years.

And there are short odds that there will be more action from this quarter in the not too distant future.