At the beginning of the summer, the subsidies for two packages of scheduled flights for the next three years were offered by The Icelandic Road and Coastal Administration (IRCA) (Icelandic “Vegagerðin”). First, from Reykjavík to Hofn in Hornafjörður, and second from the capital to Gjögur and Bíldudalur. Offers were received from Eagle Air (Flugfélagið Ernir), which has operated these routes in recent years, and also from Norlandair and Flugfélagið Austurlands, Túristi reported.
Flugfélagið Austurlands’s price offer was the lowest and well below budget, however, their offer was not accepted as it did not meet all the conditions set in the offer. Ríkiskaup came to the same conclusion about Eagle Air’s offer and then Norlandair was awarded the three routes.
Eagle Air’s representatives have appealed the decision and Eagle Air CEO Hörður Guðmundsson said that there was every reason for it.
Norlandair’s offer for a flight to Hofn in Hornafjörður amounted to ISK 677 million, while Eagle Air offered ISK 531 million and Flugfélag Austurlands – ISK 370 million. Vegagerðin’s cost estimates amounted to half a billion ISK. For the second package of routes, Vegagerðin’s estimate assumed that the cost of flights to Gjögur and Bíldudalur would be ISK 726 million. Norlandair’s bid was ISK 612 million, Eagle Air offered 797 million and Flugfélag Austurlands 392 million.
Earlier this month, Eagle Air has stoped scheduled flights to Vestamannaejar. The founder and owner of Eagle Air Hörður Guðmundsson told Flugblogg, it has happened because of the decreasing amount of passengers between two airports and competition with subsidised ferry line.