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Operation

Opportunities for the future

Isavia’s Operations

Isavia is responsible for the development and operation of Keflavík International Airport. Its subsidiaries Isavia ANS and Isavia Regional Airports manage air navigation services in one of the world’s largest air traffic control areas and the strong network of domestic airports in Iceland, respectively. In addition, its subsidiary the Duty-Free Store operates four retail shops in the Leifur Eiríksson Air Terminal at Keflavík Airport.

The operational form of the company was modified at the end of 2019, with air navigation services and the operation of domestic airports (previously divisions within Isavia) being converted into subsidiaries. The company’s Board of Directors made this decision based on the dissimilar nature of the operating units in question. Keflavík International Airport is operated in a competitive environment, while domestic airports rely on contributions from the Icelandic state and air navigation services are operated on the basis of a cost recovery system. These changes afforded each part of the operation its own importance and management structure and gave them the opportunity to adopt different priorities and objectives. This is the first time that the structure and content of the social responsibility report fully reflects this change.

isavia ohf

Keflavík Airport is operated by the parent company Isavia. The airport is run entirely on business terms. It operates in a demanding competitive environment and is financially sustainable. This is where the greatest opportunities lie, as well as the greatest operational risks. 

Keflavík Airport has two core divisions. Commercial & Airport Development handles airlines relationships and route development, commercial and marketing, assets and infrastructure and airport development and construction. Service & Operation handles airport security, services and co-ordination, airside operations, tower control and safety management. 

There are also two support divisions – down from three last year following the merger of the Finance division and the Human Resources & Corporate Strategy division. Finance & Human Resources handles accounting and settlement, legal services, procurement and economics services, as well as human resources and training. Digital Development & IT handles digital development, systems operations and user services. Governance, corporate strategy and sustainability, public relations and Keflavík Airport district planning are the responsibility of the CEO’s office. The support divisions and the CEO offices are an integral part of Keflavík Airport operations.

There is strong focus on all divisions of the parent company and the CEO’s office working for Isavia Group as a whole. The CEO of Isavia is Sveinbjörn Indriðason. 

Isavia Regional airports

Isavia Regional Airports deals with the operations of Iceland’s scheduled airports other than Keflavík International Airport, as well as smaller airports and landing sites. Operation of these airports is based on a service agreement between the company and the Ministry of Transport and Local Government, which determines the level of service for each airport and how they are operated and maintained. This is due to the fact that the airports in question are part of the public transport system owned by the state.

The company operates the international airports in Reykjavík, Akureyri and Egilsstaðir. In addition, there are nine landing sites for regular scheduled flights in Iceland. The company is also responsible for 30 other landing sites throughout Iceland. The company handles various tasks, such as general airport services, air traffic services, aviation security, supervision of construction projects and safety and quality issues. Isavia is a cohesive group which aims to promote Iceland and be part of a good customer journey.



Managing director isavia regional airports

Sigrún Björk Jakobsdóttir, born 1966, Diploma in Hotel and Tourism Managment. Managing director from 2018.


Day at Reykjavík Airport

isavia ans

Isavia ANS provides air navigation services for domestic and international flights in the upper airspace over the North Atlantic. Operations are based on international agreements with 24 countries for services and financing, based on a cost recovery system. Isavia ANS is licensed to handle air navigation and air traffic services in the North Atlantic on behalf of Iceland and over the Icelandic air traffic control area. The International Civil Aviation Organisation (ICAO) has granted seven countries the task of handling air traffic services over this area: in addition to Iceland, these include the United Kingdom, Canada, Norway, the United States, Denmark and Portugal. Just over a quarter of all air traffic over the North Atlantic crosses the Icelandic air traffic control area. The area is quite unique among oceanic areas, thanks to its flexibility as regards flight routes and altitudes. 

Tern Systems, which develops software for air navigation services, and Suluk, which manages the operation of air navigation services in Greenland, are both subsidiaries of Isavia ANS. 

Managing director Isavia ANS

Kjartan Briem, born 1970, MSc.Electrical Engineering.
Managing Director from 2021.

Air traffic control

Duty Free store

The Duty Free Store operates shops selling duty-free goods in the Leifur Eiríksson Air Terminal under an operating licence from its parent company, Isavia. These shops stock a diverse range of high-quality Icelandic and foreign goods, focusing on traditional duty-free goods, alcohol, tobacco, sweets and cosmetics. The Duty Free Store operates four outlets in the Leifur Eiríksson Air Terminal – two for departing passengers, one for passengers travelling to non-Schengen countries and one for arriving passengers.

The Duty Free Store’s policy is to offer a selection of goods and services in line with the needs of its various passenger groups, while creating a desirable workplace that returns profitable operations to the owners. The Duty Free Store has been on Creditinfo’s list of outstanding companies list 2010–20 and has received equal pay certification from BSI since 2019.

Managing director duty free store

Þorgerður Þráinsdóttir, born 1975, Cand.Psych.
Managing Director from 2014.


As well as these subsidiaries, Isavia ohf. also owned Domavia which was dissolved at the beginning of 2021. Isavia moved its headquarters from Reykjavík Airport to Hafnarfjörður at the end of 2020.

STrategy

Isavia is a publicly owned company and operates under legislation on operations and state ownership. The company’s strategy is formulated by its Board of Directors and Executive Board within this framework. Managers and employees are expected to follow the company’s strategy, and the Executive Board is responsible for implementing it. The main focuses of the company’s strategy are presented in the company’s strategy pyramid.

Due to changes in Isavia's structure and its division into a parent company and subsidiaries, a change in the organization chart and major changes in the company's operating environment, the company's board has decided to review its strategy.

strategy

Isavia´s executive board

The Chief officers of Isavia’s core divisions and support divisions, together with the CEO and Deputy-CEO form the Executive Board of the company. The Executive Board debates and discusses strategical matters for the company’s operations.

The current policy on corporate social responsibility was set by the company's board in 2017 and the company's code of conduct was updated at the same time. The board monitors the implementation of the issue, while the CEO and executive board of the company follow up on a daily basis.

CEO OF ISAVIA

Sveinbjörn Indriðason, born 1972, Economist, He was Isavia's Director of Finance from 2013 until he was hired as Isavia's Chief Executive Officer (CEO) in June 2019.

DEPUTY CEO

The Deputy CEO manages the office of the CEO who handles the joint affairs of the company and is to assist the Board in ensuring good governance. Elín Árnadóttir born 1971, Business Administrator. Deputy CEO of Isavia since 2013.


SERVICE AND OPERATIONS

Services and Operations are responsible for security management, aviation security, passenger services, airport services and the operation of the flight tower at Keflavík Airport. Anna Björk Bjarnadóttir, born 1967, Sport scientist. Chief Service and Operations Officer from 2020.

COMMERCIAL AND AIRPORT DEVELOPMENT

Commercial and Airport Development handles communications with airlines and route development, business and marketing, operations and development of infrastructure, as well as airport development and construction at Keflavik airport. Guðmundur Daði Rúnarsson, born 1979, Engineering Manager. Chief Commercial and Airport Development Officer from 2016.

Finance and Human resources

Finance & Human Resources handles accounting and settlement, legal services, procurement and economics services, as well as human resources and training. Ingibjörg Arnarsdóttir, born 1971, Business Administrator. Chief Financial and Human Resources Officer from 2020.

DIGITAL DEVELOPMENT AND IT

Digital development and information technology Division operates and leads digital development for the company. Ragnheiður Hauksdóttir, born 1977, Business Administrator. Chief Information Officer from 2020.