What does Icelandair have in common with its early days?
Birkir Hólm Guðnasson, CEO - Icelandair's mentality, its Icelandic spirit. We don't think that such and such a project is impossible or that we are small. We don't think like that. Our employees always say to themselves: " we can do it too ". We're also fairly humble: when we manage to achieve something, we prefer to let travellers see it for themselves rather than going around explaining that we're the best. But we are also pioneers. We were pioneers 80 years ago and we're still pioneers today, as was the case with the launch of wi-fi. We're very quick to adapt, and flexibility has always been our strength. We're always looking for opportunities, in any situation. We sometimes say: " Never waste a good crisis "Because every situation offers opportunities. Our independence is also our strength. We have always been a private company. We're not part of an alliance, we're not owned by another big company that tells us what to do. We go where we want to go, which allows us to be flexible and dynamic.
constantly renewing ourselves, identifying new opportunities
How can an airline be so enthusiastic about celebrating its 80th anniversary?
Birkir Hólm Guðnasson - This is mainly down to our employees. Many of them have been with us for a long time, an average of around twenty years I believe. Our staff turnover is very low. We are also constantly looking to renew ourselves and identify new opportunities.
Helgi Mar Björgvinsson, Senior Vice-President - In the airline industry, you have to be very quick to adapt to the environment, to be dynamic and reactive. Perhaps this is also linked to the Icelandic mentality. Admittedly, we are a small company on a small island. But we're ideally located on the route between America and Europe, and we make the most of this strategic position.
Turbulence such as the financial crisis or the volcanic episode may have helped to accentuate this reactivity, to affirm this mentality...
Birkir Hólm Guðnasson - Absolutely. You have to be particularly responsive when you're faced with situations like this, and it shows the mentality of the men and women who work with us. We have been able to react and adapt very quickly to every event we have encountered. But we have also been able to see opportunities. For example, the financial crisis caused the Icelandic currency to plummet, so we were able to attract more tourists by Iceland. We have invested more in advertising campaigns in foreign markets to attract more travellers.
Independent airlines that are not part of a major group or airline alliance are becoming increasingly rare. Are you considering such a move?
Helgi Mar Björgvinsson - We analyse the situation regularly. We believe that it is better for us to be independent, even if we have bilateral agreements, as is the case with Alaska Airlines and JetBlue in the United States or Finnair in Europe. Even if we are not part of an alliance, we can rely on numerous agreements. So we are very active in the area of partnerships.
What is your view of the French market, which you know well?
Helgi Mar Björgvinsson - I was actually based in Paris for three years. It's a very important market for us, and one that has grown impressively in a relatively short space of time. Just look at the number of routes: just seven years ago, we only operated two flights a week during the winter, and today we offer more than one flight a day during the same period. The addition of US destinations is helping to strengthen our route to and from Paris. By increasing the possibilities between Paris and North America, we are also attracting more travellers to Iceland, including during the winter. This has been one of our priorities: to reduce seasonality, to spread the influx of travellers over the whole year, and over the whole country.
The launch of a new flight to Orlyand, above all, its continuation, confirm that the French market is responding. So could you go one step further and set your sights on another French airport?
Helgi Mar Björgvinsson - Indeed, we have found a good balance between the outbound and inbound markets. We regularly analyse the opportunities offered by new destinations, both in Europe and North America. For the time being, we have not made any decisions, and we will continue to monitor market developments in France, as in other European countries.
Birkir Hólm Guðnasson - There's always a possibility, but we don't really like to go to the press about the airports we monitor...
What does the business travel market represent for Icelandair?
Birkir Hólm Guðnasson - The expansion of our network in North America and the densification of frequencies have enabled us to make progress in the corporate segment.
Are MyStopOver and Stopover Buddy also targeting this market, riding the wave of bleisure?
Birkir Hólm Guðnasson - Our products MyStopOver reflects the trend in the bleisureThis is a great way for business travellers to extend their stay in Iceland on their way to the United States, Canada or Europe, at no extra cost. We are convinced that this is a good way of introducing Iceland to a wide audience, including business travellers. After discovering Iceland during a stopover, business travellers will want to come back and spend ten days or so on holiday. This helps to build traveller loyalty.
Are you planning to launch new services for business travellers?
Birkir Hólm Guðnasson - Not for the time being. If we look at the current trend, it seems to be towards low-cost airlines. For example, we don't think that the introduction of seat-beds in our fleet corresponds to the expectations of our passengers. We already offer in-flight Wi-Fi, and next April we will be inaugurating a new lounge at Keflavik airport. We have a good, competitive product that offers good value for money.
The balance between Wow's low-cost offer and competitors offering direct flights must be complex...
Birkir Hólm Guðnasson - Yes, but 45% of transatlantic travellers opt for a flight with a stopover. So we need to focus on the quality of the service offered at our Keflavik hub, to provide the best possible experience for our passengers. I think the key to success is transparency, making sure that the product meets the traveller's expectations. If that's the case, we'll turn them into happy, loyal travellers.
Connectivity is the key to growth
So there is room for two Icelandic carriers, Icelandair and Wow?
Birkir Hólm Guðnasson - So it seems! In both cases, the focus is on transit, as in Dubai for example. 50% of our traffic is connecting via our hub, so our 'stop over' service offers interesting prospects for development. More than 25 airlines fly to Iceland. Connectivity is the key to growth.
So there's no brake on your growth, including in terms of infrastructure?
Birkir Hólm Guðnasson - Iceland's infrastructure is keeping pace with the country's growth. New hotels are being built, as are new roads. The airport has put in place a development plan for the next 25 years, which will be launched shortly. Everything will fall into place and continue to evolve. But we always have to figure out how to move forward with what we have, and find the right opportunities.
Icelandair in figures :
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