Iceland Express is seeking permission to build a new airport in Reykjavik. The proposed airport would measure 6,500 square meters and be located next to the existing domestic airport. It would be used for both domestic and international travel.
Although Iceland Express has a strong international presence, it has been unable to present a serious competition to the local airline, Air Iceland, which currently operates with a monopoly in terms of domestic air travel.
The application for the airport development, which was sent to the City Council of Reykjavik and Flugstodir (ISAVIA), an aviation service, claimed that the construction of a new airport facility is integral for nurturing competition in the domestic flight market. A copy of the application was also sent to Kristján Möller, the Minister of Transport.
Thorgeir Pálsson, the CEAO of ISAVIA, and one of the people responsible for the operation of the current airport in Reykjavik welcomed an increase in domestic travel options for the people of Iceland. “Therefore we will take this application seriously and discuss this with them [Iceland Express],” he said.
Iceland Express is a low-fare airline which currently flies from Keflavik International Aiport to 13 airports across Europe including Germany, France and Spain. The airline first took off in February 2003 with low cost flights to London and Copenhagen.