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Aviation News Item: 02869
8th Dec 2009
Icejet comes in from the cold and plots expansion
Source: flightglobal.com
 Icelandic charter company Icejet is seeking to widen its product and services portfolio by adding larger, longer-range aircraft types to its all-Dornier 328Jet fleet and providing a corporate shuttle service to European corporations.
"We are in discussions with a number of companies who are moving a lot of people around Europe on a regular basis and for whom a tailored corporate shuttle service would make business sense," says Jon Ingi Jonsson, managing director of the three-year-old company, which is owned by New York-based Nordic Partners.
Rekjavik-headquartered Icejet has seen an upturn in business this year, particularly among leisure travellers and touring parties such as pop groups and sports teams. Jonsson admits the picture could have been bleaker had Icejet not decided two years ago to focus on the wider European market. "If we hadn't made this move, we probably wouldn't be here today," he says.
Iceland has been brought to its knees over the past year by financial scandals and the collapse of its banking system, taking with it hordes of former and prospective customers. "We are getting zero demand from the Icelandic market now," says Jonsson. "This business has disappeared."
He adds: "Our 328Jet fleet is based in key locations throughout western Europe - a 14-seat and 19-seat version at London Oxford airport, one 14-seater at Le Bourget and another in Milan in northern Italy." Icejet also owns a fifth 14-seat 328Jet, which remains undelivered at 328Jet Support's facility in Oberfaffenhofen.
"We don't have enough business to support this aircraft, so we are selling it," says Jonsson. He admits Icejet would benefit from a second 19-seat 328Jet as well as 31-seat aircraft and longer-range types of around 9,250km (5,000nm). "The 19-seat is perfect as a corporate shuttle and if we were to grow this business, we would be looking to add another. There is also a growing market for large group transportation of around 30 passengers. We are having to turn customers away at the moment because we don't have an aircraft to service the demand."
Jonsson says Icejet will grow its fleet through aircraft management, because this will lessen the financial burden. "We are building the management arm of the business and will remain open-minded about the types of aircraft we will take on," he adds.
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