GRAHAM WARWICK / REKJAVIK
Even for an island nation that is dependent on air transport for links to the rest of the world, Iceland has a disproportionate number of commercial aircraft on its registry - more than 50 for a population of less than 300,000. The reason is Iceland's emergence as a global centre for wet leasing.
The growth in the Icelandic-registered fleet since the formation of passenger and freight charter specialist Air Atlanta Icelandic in 1989 has not been accompanied by similar growth in the island's aviation industry. The majority of the wet-leased aircraft operate elsewhere in the world and most of the crews are not locals.
Only 300 of Air Atlanta's 500-1,000 employees, depending on season, are Icelandic citizens. This has led to calls for Iceland to invest more in training. "Our aviation students are decreasing as the fleet increases," says Gisli Baldur Gardarsson, chairman of the Icelandic aviation board.
Air Atlanta has a fleet of 27 Boeing 747s, 757s and 767s operating from cargo bases in Hong Kong, Kuala Lumpur and Luxembourg and passenger bases in the Americas, Europe and North Africa. The company formed UK-licensed Air Atlanta Europe last year, operating 12 aircraft on passenger services from London Gatwick, Manchester and Glasgow.
Air Atlanta carried more than 1.8 million passengers for other airlines in 2002, but cargo services are the future, says chief executive Hafthar Hafsteinsson. The carrier ended 2003 with seven 747-200 freighters. This will increase to 10 this year and to 15 747-200/400 freighters in 2005. Air Atlanta plans its first 757-200 passenger-to-freighter modification in 2005 and its first 767-200 conversion in 2006.
Iceland's share of the charter and wet-lease markets expanded with the formation of Bluebird Cargo in 2000. The carrier doubled its fleet to four converted Boeing 737-300 freighters last year, operating mainly in Europe. Chief executive Thoranin Kjartansson expects the fleet to increase to six, "possibly seven", this year. Two 737s are being added to its Cologne, Germany-based service on behalf of UPS.
Domestic airline Islandsflug has also expanded on to the international wet-lease market. The carrier arm added a sixth aircraft to its fleet of five Airbus A300-600/A310-300 freighters late last year and plans to boost its fleet of passenger and freighter 737-300/400s to 10 aircraft this year, says chief executive Omar Benedikisson.
Flag carrier Icelandair, meanwhile, is expanding into cargo and charter. The carrier reorganised last year, seperating flight operations from its tourism-related activities in an effort to increase operating efficiency and reduce unit costs, says chief executive Sirgidur Helgason. Icelandair has one freighter among its 12 757-200/300s and plans to stay with the 757 as it expands its fleet, he says.
Iceland offers the benefits of close links with the European Union through membership of the European Economic Area and Joint Aviation Authorities. The efficiency of Iceland's civil aviation authority (ICAA) is also acclaimed by the carriers. The ICAA will co-operate with the EU's new European Aviation Safety Agency through the JAA for as long as they co-exist, says director general Thorgeir Palsson, but doubts cloud the longer term as Iceland has no plans to join the EU.
Source: Flight International
