Reykjavik (IFN) Budget airline Iceland Express said on Thursday it would start regular flights to domestic and US destinations in 2007.
The domestic flights will be to Akureyri in northern Iceland, the country's largest town outside the Reykjavik capital area, and to Egilstadir, in eastern Iceland. The move is expected to reduce domestic airfares by 30-40%, Iceland Express chief executive Birgir Jonsson said.
The company is currently evaluating the possibilities to start flights to the US and the new overseas destinations will be Boston and New York.
Iceland Express was set up in 2003 and is owned by Icelandic investment company Fons. The company has a fleet of three Boeing MD-90 aircraft and currently operates regular traffic from Keflavik international airport to London, Copenhagen, Gothenburg, Stockholm, Berlin, Frankfurt, Friedrichshafen and Alicante.
At present, Iceland's flag carrier Icelandair has a monopoly on flights between Iceland and the US. The only other airline which operate scheduled flights to Iceland are British Airways on the route London - Keflavik and SAS on the route Oslo - Keflavik.
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