Competition restrictions on the scheduled route between Leif Eiriksson Airport and Reykjavik

The Competition Authority has issued an opinion (no. 1/2013) to the Minister of the Interior and the Road Administration concerning serious barriers to competition which are contained in a licence that the Road Administration has granted to the Association of Municipalities of the South Coast (SSS) to provide scheduled services in the area, including between Leif Eriksson International Airport (FLE) and Reykjavik. Previously, the Competition Authority had concluded that it did not have the legal grounds to bindingly halt the SSS agreements, which are intended to establish a monopoly on the scheduled route. This opinion follows complaints from Kynnisferðir, the Federation of Icelandic Industries, and the Icelandic Tourism Association.