With a new option for a direct year round flights from the United Kingdom , Denmark and Spain to Akureyri, the gateway to Arctic Iceland , Niceair had launched services on 2 June 2022, using a leased Airbus A319.
But, the Akureyri-based carrier has canceled all flights and paused all its operations due to rental payment issues with the Aircraft Lessor. Thorvaldur Ludvik Sigurjónsson, Niceair's founder, says the reason is that HiFly, Niceair's foreign partner, did not pay installments to aircraft owners.
Thorvaldur Ludvik says that despite the fact that Niceair has paid all its installments, they have not returned to the owner of the aircraft. Therefore, they have lost the plane and are unable to fulfill their obligations towards the passengers.
The company’s announcement states that despite good results in the past year, strong booking position and good prospects into the year, Niceair is in a position that makes it impossible to provide the services it planned.
Leasing company Avalon has asked for the Airbus A319 back because it was not paid.
Niceair started scheduled flights to Copenhagen from Akureyri in June last year, and then started flights to Denmark, Great Britain and Spain. The Britannia flight had to be withdrawn from sale this winter, but the plan was to start it again in the fall.
Niceair's suspension comes after the airline failed to secure a capital injection from its existing investors as well as new investors. The company has stated that it was unable to meet its financial obligations and had no choice but to suspend operations.
On the service , Ludvik Sigurjónsson says ,
“This is a sad outcome in light of the progress made to date and the good prospects, as well as the company’s proper completion of a financing round to ensure its operations are on the way, which has been ongoing since the end of the year. We have been maintaining regular scheduled flights between North Iceland and Copenhagen and Tenerife since June of last year with 71% capacity."
"We have already demonstrated that this service is very important and the local market has proven to be stronger and more efficient than hoped."
Ludvik Sigurjónsson has stated that he had no choice but to cancel all flights and reassess the company's next steps. The situation has come to an end for everyone at the company. No flights will depart, and the passengers who are in Tenerife on behalf of the company will be brought home.
He says the next steps are unclear, but reiterates that Niceair is not bankrupt.
"This is a very unfortunate time altogether. The peak season in aviation is about to begin. We have just completed our funding round. We have had our minds set for the year and everything indicated that we would be in good shape."
He says the staff has been informed of the situation, they have been fighting to find another machine, but it is difficult at this time. Those who have booked a flight and paid by card can get a refund through their companies. Other requirements must have their own way.
Related News....
