Icelandair: Work is in progress to simplify organisational structures further in 2019

Icelandair reported (01-Aug-2019) the following operational highlights during 1H2019:

• Changes made to company organisational structure to reflect emphasis on core business. Fleet management and route network reorganised and strengthened;
• Work progressing on simplifying organisation further through integration of subsidiaries and a reduction in the number of operational units to the extent possible;
• Flights through a new connection bank were launched in mid May-2019, with the objective to improve the utilisation of its fleet;
• Procurement processes have been harmonised, and the company has reviewed its contracts with suppliers on more cost effective terms;
• The company is also examining options for further outsourcing of tasks with the objective of streamlining processes and reducing operating cost;
• The operations of Air Iceland Connect have improved compared to 2018. The work to improve its operations further is ongoing according to an action plan that has been put in place. Seat capacity has been reduced and one Bombardier Q400 aircraft has been put up for sale;
• The Company's charter operations through Loftleidir Icelandic got off to a "slower start than expected", but the outlook is favourable for the 2H2019;
• Hotel operations have been successful so far this year despite a challenging operating environment;
• Around mid-July a share purchase agreement was signed with Berjaya Property Ireland Limited whereby Berjaya acquires a majority share in Icelandair Hotels and related real estate. [more - original PR]