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Icelandair Plans War Chest For Growth
October 14, 2004
Icelandair plans to expand its business via mergers and acquisitions and add new destinations, after seeking a 40 percent capital increase from shareholders this week, its new chairman said on Thursday.
Hannes Smarason, who bought a 32.2 percent stake in Icelandair earlier this month, said in an interview that he wanted to increase liquidity "to turn Icelandair into a more attractive investment option".
"We are looking for opportunities to grow in neighboring countries by mergers and acquisitions," Smarason said, adding that there was special interest in freight and charter operations. "Our intention is to become very aggressive."
Icelandair begins scheduled flights between Reykjavik and San Francisco next spring, in addition to its six other US destinations and 18 in Europe.
Smarason said the airline was considering more destinations on the US West Coast, Europe and even Asia, with routes over the North Pole.
"We had a few experimental flights to Tokyo last spring, and are considering it as a destination for next summer," he said.
The new chairman said he wanted to make the company a stronger player in tourism and build up its investments.
"We have a strong cash position, which will increase now with the new share capital," Smarason said. "The idea is to use it for investments and counter the cycles in the aviation business."
Last year Icelandair's profits were halved because of price competition and shrinking cross-Atlantic traffic, but it remained in the black thanks to earlier cost-cutting and restructuring.
(Reuters)
October 14, 2004
Icelandair plans to expand its business via mergers and acquisitions and add new destinations, after seeking a 40 percent capital increase from shareholders this week, its new chairman said on Thursday.
Hannes Smarason, who bought a 32.2 percent stake in Icelandair earlier this month, said in an interview that he wanted to increase liquidity "to turn Icelandair into a more attractive investment option".
"We are looking for opportunities to grow in neighboring countries by mergers and acquisitions," Smarason said, adding that there was special interest in freight and charter operations. "Our intention is to become very aggressive."
Icelandair begins scheduled flights between Reykjavik and San Francisco next spring, in addition to its six other US destinations and 18 in Europe.
Smarason said the airline was considering more destinations on the US West Coast, Europe and even Asia, with routes over the North Pole.
"We had a few experimental flights to Tokyo last spring, and are considering it as a destination for next summer," he said.
The new chairman said he wanted to make the company a stronger player in tourism and build up its investments.
"We have a strong cash position, which will increase now with the new share capital," Smarason said. "The idea is to use it for investments and counter the cycles in the aviation business."
Last year Icelandair's profits were halved because of price competition and shrinking cross-Atlantic traffic, but it remained in the black thanks to earlier cost-cutting and restructuring.
(Reuters)
