Strategic overview

Strategic Overview (1).png

Strategy and structure

The heart of Icelandair Group’s business model is the international route network and the unique geographical location of Iceland which serves as a connecting hub between Europe and North America, creating sustainable value for the Company's shareholders and other stakeholders.

During 2020, Icelandair Group’s strategy was further aligned to the Company’s increased focus on its core business, aviation. Furthermore, the strategic importance of Iceland as the Company's hub was reinforced. The vision of bringing the spirit of Iceland to the world and the mission of offering smooth and enjoyable journeys to, from, via and within Iceland – our hub and home, are supported by four strategic initiatives. These are: Sustaining a culture of teamwork and high performance, becoming the most customer-focused airline in our markets, achieving excellence in all operations and operating an agile and sustainable network.

Icelandair Group's strategy

Icelandair Group's organizational structure

Changes in the organizational structure in 2020

In 2020, as the Company prepared for an extended period of minimum operations, changes were made to its organizational structure. The changes were aimed at simplifying the Company structure but at the same time securing necessary core operations to maintain the flexibility to be able to scale up quickly when markets would start to recover again. The Company’s operations now consist of seven divisions instead of eight before:

  • Sales & Customer Experience
  • Air Freight & Logistics (Icelandair Cargo)
  • Aircraft Leasing & Consulting (Loftleidir Icelandic)
  • Flight Operations
  • Finance
  • People & Culture
  • Business Development & Digital

Following the changes, the Executive Committee consists of eight members instead of nine before. Tómas Ingason, who has served as Chief Information Officer since the beginning of March 2019, heads up the new division Business Development & Digital, which focuses on digital innovation as well as business development and the management of the route network. Ívar S. Kristinsson, who had served as Managing Director of Fleet & Network, left the Executive Committee but has taken on a Director's role within Finance. In addition, organizational changes were made within each of the divisions and their departments to reduce the number of next level Directors.