Legacy carrier Icelandair is to merge its international brand with its domestic operation, Air Iceland Connect (AIC), into one larger network. All sales and marketing efforts will be joined under the Icelandair brand from 16 March, with Icelandair’s full range of products and services accessible in one place, for both its domestic and international markets, at icelandair.com.

The airline’s objective is to ensure a sustainable future for domestic operations in Iceland and the West Nordic region, while also strengthening and simplifying the company’s operations. With one strong brand, a simplified booking process and a unified distribution system, Icelandair says the integration will allow it “to focus on an improved and consistent customer experience across the entire route network”. 

Local destinations all around Iceland, including Akureyri, Egilsstaðir, Ísafjörður, and Vestmannaeyjar, as well as Greenland, will gain visibility on Icelandair’s website through one search, one ticket and a connection to the route network in Europe and North America. This should make it easier for international tourists to explore the country once relevant travel and Covid restrictions are lifted. 

After the integration, domestic and regional flights will be operated on Icelandair’s FI flight numbers, although the companies’ operating licenses remain separate. The product range and services available on domestic flights are currently being reviewed, with new products and services also in development that will be introduced in the spring. Outstanding travel credits purchased before the integration will remain unchanged. 

Commenting on the news, CEO Bogi Nils Bogason said: “The integration of Icelandair and Air Iceland Connect is an important step that will contribute to a stronger and more streamlined airline and improved air transport across our domestic and international route network. 

“This is a complex project that we will take in steps. That’s why we put great emphasis on clear communication with customers and open dialogue with key stakeholders around Iceland about how we will ensure the development of domestic flights with the value and experience of our customers in mind.

“In the long run, as our domestic flights become more visible in Icelandair’s booking engines we hope to see our customers from Europe and North America connecting to domestic destinations across our homeland.”

Last September, Icelandair entered into a partnership agreement with Easyjet, whereby it joined Worldwide, a flight connections platform offering self-connect and sales partnerships through a digital virtual hub.