The Competition Council has taken a decision (No. 26/1999) that a new midday flight by Flugfélag Íslands between Reykjavik and Egilsstaðir, according to the company's winter schedule, breaches the provisions of competition law. Flugfélag Íslands is therefore prohibited from operating a midday flight on the said route during the winter schedule.
Icelandair, the market-dominant airline in domestic flights, announced in a new schedule for the coming winter that it would add a midday flight between Reykjavik and Egilsstaðir to its schedule from last winter. The airline did so despite the Competition Council and the Competition Appeals Board concluding last winter that increased service provision by the airline at the time in question would lead to the scheduled flights of its competitor, Íslandsflug, which is a midday flight, would be discontinued.
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