KURT HOFMANN / REYKJAVIK

Airbus A320 and Boeing 737 also under appraisal for operation on scheduled services

Icelandair is planning to expand its charter fleet from four to up to 10 aircraft and is evaluating the Boeing 767-300ER for the operation. The airline is also studying the Airbus A320 and Boeing 737 for its transatlantic scheduled services.

The carrier established the charter business in response to the collapse in the scheduled market after last year's terrorist attacks, when the airline was forced to cut capacity to the USA by 30% and 12% on European routes. Four of the airline's 10 Boeing 757s were transferred to the charter business and have been operating to Boston, USA; the Dominican Republic; Copenhagen, Denmark; and Thessaloniki, Greece, for tour operators and Carribean airline Aeromar.

"We are very satisfied with the charter operation and expect a need in that business for up to 10 aircraft," says Icelandair chief executive Sigurdur Helgason.

The airline wants to take advantage of overcapacity in the aircraft market, which has substantially reduced lease rates. "For our charter operation, the 767-300ER will be an opportunity. We are looking closely at it and maybe we will introduce it next year," says Helgason.

Up to seven 757s will be flown on scheduled services to Europe and the USA for winter operations this year. "During the low season, an aircraft smaller than the 757 would be better on transatlantic routes...we are searching for an ideal 150-seat aircraft," says Helgason.

"The range of the Next Generation 737 is not sufficient to operate from Keflavik to places such as Baltimore or Orlando," says Helgason. He adds that the A320 could operate with two auxiliary fuel tanks in its cargo hold, "but we would lose cargo capacity, and we carry a lot of fish in the belly."

Range is critical for Icelandair's transatlantic operations. If its Keflavik hub is closed because of bad weather, the airline's alternate airport is Glasgow, almost 2h away, says Helgason.

Source: Flight International