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Founded | 1944 | ||||||
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Commenced operations | 1944 | ||||||
Ceased operations | 1979 (merged in 1973 withFlugfélag Íslands to formIcelandair) | ||||||
Hubs | Reykjavík Airport | ||||||
Focus cities | John F. Kennedy International Airport Luxembourg Airport | ||||||
Headquarters | Reykjavík,Iceland | ||||||
Key people | Alfred Eliasson (co-founder 1944 and CEO from 1953) Kristinn Olsen (co-founder 1944)Sigurdur Olafsson (co-founder 1944) |
Loftleiðir (Icelandic pronunciation:[ˈlɔftˈleiːðɪr̥],lit. 'Airways'), internationally known asIcelandic Airlines (abbreviatedIAL) orLoftleiðir Icelandic,[1] was a privateIcelandic airline headquartered on the grounds ofReykjavík Airport inReykjavík,[2] which operated mostly trans-Atlantic flights linking Europe and America, pioneering thelow-cost flight business strategy on these routes.
In 2003, the name Loftleiðir Icelandic made a comeback to service the skies as Icelandair's aircraft lease and charter flights provider.
Loftleiðir (the name being a compound of the Icelandic words for "air" and "way") was founded on 10 March 1944, byAlfreð Elíasson and two other young Icelandic pilots who had just returned from flight training inCanada. The first revenue flight (from Reykjavík toÍsafjörður) took place on 6 April of that year.[3] During the initial years, only domestic routes out of Reykjavík Airport were operated using airplanes of the typesDouglas DC-3,Consolidated PBY Catalina,[4]Stinson Reliant,Grumman Goose,[3]Noorduyn Norseman,Avro Anson andVultee L-1 Vigilant.[5] The first international flight (from Reykjavík toCopenhagen) using aDouglas DC-4 took place on 17 June 1947, theIcelandic National Day. Loftleiðir had expected to take delivery of the DC-4 already in 1946 (the first Icelandic airline to operate an airliner of that size and range), but the delivery was delayed because of the bankruptcy of the interior outfitter.[3] Initially, the DC-4 was deployed on flights to Europe, as well as on chartered flights for third party companies, for example from Britain to South America.[3]
In 1948, Loftleiðir was granted governmental approval to operate passenger services to theUnited States of America, which were launched in August of that year when a second DC-4 joined the fleet, withNew York'sIdlewild Airport as first destination.[6] In 1949 and 1950, the DC-4s wereleased to U.S. carrierSeaboard & Western Airlines because of the difficult financial situation Loftleiðir was in during that period.[3]
Since Loftleiðir had launched domestic flights in the 1940s, there had been a fierce competition with Flugfélag Íslands, which had prompted the Icelandic government to divide the network between the two airlines, when the originally proposed merger had been rejected. The management of Loftleiðir claimed to have been disfavoured in this measure,[citation needed] and decided to cease all domestic services in 1952, fully concentrating on transatlantic flights henceforth.[7] Typical routings at that time were from New York via Reykjavík toHamburg orLuxembourg, with intermediate stops atOslo,Copenhagen,Bergen,Stavanger orGothenburg.[8]
From 1955 onwards,Luxembourg-Findel Airport was the European starting point for most of Loftleiðir's transatlantic flights.[9] With the introduction of theDouglas DC-6 into the fleet in 1959, the DC-4s were gradually phased out.[10]
In 1964, Loftleiðir started operating its firstCanadair CL-44D-4, and two years later the first of its four CL-44Js, a variant of the CL-44D4 stretched on request byCanadair. Loftleiðir was the only passenger operator of the turboprop, which was used as a cargo plane by other airlines.[11] It was the largest passenger aircraft flying over the Atlantic Ocean at that time, carrying up to 189 passengers.[12][13] Loftleiðir marketed the CL-44J under the name "Rolls-Royce 400 PropJet". This led to the confusion that the CL-44J is sometimes referred to as the Canadair-400.[14] At that time, the company had 1,000 employees.[7]
The late sixties were an exciting time for Loftleiðir.[15] In 1969, the company acquired International Air Bahama, a small airline operatingBoeing 707 jets out of theBahamas,[16] and a year later, Loftleiðir became one of the founders ofCargolux, a thriving cargo airline. Also in 1970, Loftleiðir entered the jet age with its first two stretchedDouglas DC-8-63 "Super DC-8" jetliners. In 1971, the company started flying between Iceland and Scandinavia with the slightly smaller DC-8-55.[17]
The growing competition from Flugfélag Íslands and the economical pressure during the1970s energy crisis led to the merger of the two airlines in 1973 into one holding company, which was calledFlugleiðir. In 1979, Flugfélag Íslands and Loftleiðir merged into a new airline, also called Flugleiðir, which later became known asIcelandair.[18]
The Loftleiðir branding re-emerged in 2003, when the newly createdwet-lease and charter subsidiary ofIcelandair Group was namedLoftleiðir Icelandic.[19]
The geographical position of Iceland in the Atlantic Ocean between Europe and America allowed Loftleiðir to offer passenger flights between the two continents with an intermediate stop at its home airport at Reykjavík, thus operating at lower costs because of easier aircraft and crew logistics than its outer European or American competitors. The airline was chosen by many young Americans as a cheap means of travel to Europe, which earned it the titleHippie Airline from the late 1960s.[20][21] During different state visits to Iceland,Bill[22][23] andHillary Clinton[24] both remembered the experience of their flights with Loftleiðir.[22]
In order to comply with the then-validfreedoms of the air restrictions, tickets for transatlantic flights were issued in two parts (to/from Iceland, as Loftleiðir, as an Icelandic airline, was allowed to transport passengers only to and from its country of registry), but stopovers were held as short as one hour, with no changing of the aircraft required.[8] Because Loftleiðir had not joined theInternational Air Transport Association (IATA), which at that time defined the fares for its member airlines on transatlantic routes, it could offer considerably lower ticket prices.[25]Sigurður Helgason, who had joined the board of the airline in 1953, is credited with introducing this strategy. TheNew York Times called him a "low-cost travel pioneer."[15]
Between 1952 and 1962, Loftleiðir co-operated with the Norwegian airlineBraathens SAFE on the transatlantic routes on acodeshare-like basis, as well as maintenance, inspection, overhaul and repairs.[26][27][28] When the European focus shifted from Scandinavia to Luxemburg, this partnership was terminated.
International Air Bahama, a small airline based in theBahamas operating transatlanticBoeing 707 jet service betweenNassau andLuxembourg, was acquired in 1969 with International Air Bahama subsequently operating stretched SuperDouglas DC-8 jetliners on its transatlantic flights.[7][16]
In 1970, Loftleiðir became one of the founding shareholders ofCargolux, along withLuxair and several private investors.
Over the years, the following aircraft types were operated:[29]
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Aircraft | Introduced | Retired |
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Avro Anson | ||
Canadair CL-44 | 1964 | |
Douglas DC-3 | ||
Douglas DC-4 /Douglas C-54 | 1947 | |
Douglas DC-6 | 1959 | |
Douglas DC-8 (including DC-8-55 and Super DC-8-63) | 1970 | |
Grumman Goose | 1944 | |
Noorduyn Norseman | ||
Stinson Reliant | 1944 | |
Vultee L-1 Vigilant |
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