Icelandair is abusing its dominant market position in competition with Iceland Express and is thereby breaching competition law.

When Iceland Express launched its operations and plans to sell cheap flights to Copenhagen and London, Icelandair responded by introducing and offering low fares, i.e. Vorsmelli and Smelli 1 (the cheapest Netsmelli), to the same cities. Icelandair took further action when Iceland Express began competing on flights to these destinations.

Iceland Express believes that Icelandair's actions, including its low airfares, are aimed at preventing the new company from establishing a foothold in the market. The company also believes it is likely that airfares will rise again if Iceland Express is driven out of the market by Icelandair's actions. A complaint was sent to the Competition Authority in this regard last February.

Press release in PDF format (PDF document – Opens in a new window).