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Stakeholders

Stakeholder relationships

Isavia focuses on extensive consultation with those stakeholders who rely on its services and who are affected by its operations. Operations have an impact throughout Iceland and on all its inhabitants. Isavia has analysed over a hundred stakeholders, which can be classified under five categories: customers, employees, the community, the authorities and suppliers.

In order to find out what stakeholders consider to be the most important issues and topics as regards the company’s social responsibility, Isavia has conducted various interviews and studies over recent years. We continued to work on this basis last year, while paying particular attention to aspects that our stakeholders indicated as being important.

The operations of Keflavík International Airport are diverse, and Isavia enjoys good co-operation with the many stakeholders working in the various fields of aviation operations. The company’s main customers are: aircraft operators using airports and flight navigation areas, operators at airports (such as flight services entities, shops, restaurants, car rentals and coach service companies) and, last but not least, passengers. Communication with users and operators happens first and foremost during regular meetings. Communication with passengers takes the form of direct interactions with the company’s employees at airports, traditional communication means and regular customer surveys. There is particular focus on working closely with check-in agents and airlines on environmental issues at the airport and with restaurant and shop operators in the terminal to tackle the matter together.

Isavia’s employees and its subsidiaries are a diverse group of people working at different locations around the country. Communication with and between employees happens first and foremost on the company’s intranet; at employee meetings with the CEO, chief officers and other members of management; and at events held by the company. Last year, Workplace was introduced as the company’s intranet to support operations and to better connect employees in these new circumstances. Employees can make status updates across the whole group, share images and videos, connect with colleagues via common interests, retrieve various tools and equipment to use in their work or manage registrations of events and training courses within the company.

Additional information about the categories employees and customers are in their respective chapters.

Our people

- Comprehensive overview

Bjarni Borgarson

Bjarni F. Borgarsson

Department manager of hub control center (HCC), keflavík Airport

Why was HCC established?
It was a part of the organizational changes at Isavia in spring 2020 to establish a joint control centre for Keflavík airport with the objective to increase efficiency in daily operations. Hub Control Centre (HCC) connects unique and systematically important units, resulting in increased co-ordination between them, shorter communication channels and simpler decision making.

Whether it is daily tasks, deviations from normal operations or emergency response. Our objective is for HCC to become the unit that constantly possesses a comprehensive overview of Keflavík airport’s operation through a constant and efficient flow of information. An interdisciplinary approach to problem solving will be emphasized. We place great emphasis on providing excellent service and are very willing to partake in collaborations with the objective of solving cases both quickly and effectively.

Which operational units are a part of HCC?
At HCC there are thirteen operational desks. In the first phase of implementation, both the Security Control Center and the Terminal Operations Control Center were transferred to HCC. The plan is that HCC would provide desks for units from other operational units of the airport.

From Isavia those units would be passenger services, airport operations and airport security. A facility would be available for ground handlers, aircraft operators and the police.

How has the process been and what are the opinions of stakeholders?
The implementation of HCC has exceeded expectations and we see a noticeable difference despite being open for such a short amount of time. The co-ordination of different units now takes place in a more efficient way and communication channels are shorter. There is much work ahead, but we expect HCC to become a key unit for Keflavík aiport‘s daily operation and we will carry our weight to ensure Keflavík airport‘s place as a centre for aviation in the North-Atlantic.

THE COMMUNITY

There is extensive communication with various parties in the community, e.g. local authorities, regional associations in the neighbourhood of the airport, other associations. The focus is on improving the way in which information is transmitted to local authorities, as the activities of the group can have a considerable impact on local communities. The main channels of communication are formal meetings with local authority employees and other stakeholders. Isavia and its subsidiaries also work extensively with stakeholders in the tourism industry, organising regular meetings where information is provided to both the tourism industry and the general public. The company works closely with fire brigades and rescue services throughout Iceland and conduct air accident safety drills involving all response services. Isavia employees regularly speak at meetings held by other parties.

The Isavia ANS work in close co-operation with other service entities within and outside Europe. The company participates in Borealis, a collaborative venue for nine flight navigation service providers in North Europe. Isavia has been one of the sponsors of the consultation venue Arctic Circle from the very beginning, and employees take an active part in discussions on the issues facing the Nordic region, whether in connection with air traffic in the Nordic area or in connection with ideas of developing a rescue services hub in Iceland.


Suðurnes forum

One of the ways in which Isavia endeavours to further strengthen collaboration with external stakeholders is joint strategic planning – based on the UN Global Goals – with local authorities (Grindavík, Reykjanesbær, Suðurnesjabær and Vogar); the land planning authority, Kadeco; and the Suðurnes Association of Municipalities. The aim of this consultation forum is to increase collaboration between Isavia, the local authorities and other stakeholders in Suðurnes and thereby work on shared interests as a single entity.

A major discussion meeting on adopting the Global Goals was held in November 2020. This was an online meeting, with 140 participants engaging in lively discussions in various subject groups. At the end of the meeting, all those involved in the Suðurnes Forum signed a declaration pledging to speed up adoption of the circular economy in the area. This includes a commitment to pursue measures aimed at cutting greenhouse gas emissions, waging a concerted battle against the threat of plastic in the environment and tackling food waste. Municipalities and companies in Suðurnes will be keeping carbon records, measuring their carbon footprint and setting emission targets.

The meeting was addressed by PM Katrín Jakobsdóttir, Bjarni Benediktsson (Minister for Finance and Economic Affairs), Sigurður Ingi Jóhannsson (Minister for Transport and Local Government), Þórdís Kolbrún Reykfjörð Gylfadóttir (Minister for Tourism, Industries and Innovation) and Guðmundur Ingi Guðbrandsson (Minister for the Environment and Natural Resources). They all welcomed the initiative and the solidarity shown by the residents of Suðurnes in working on the post-Covid-19 recovery.

working with the tourism industry

Isavia and its subsidiaries collaborate extensively with entities in the tourism sector such as the Travel Industry Association (SAF), the Icelandic Tourist Board, Promote Iceland and the Tourism Task Force. In addition, the company is a member of Iceland Tourism and Iceland Naturally. The company is represented in the Saman í sókn tourism marketing project, run by Promote Iceland, and in Promote Iceland’s advisory board. Isavia is also a member of the Icelandic Ocean Cluster and has sat in the Port and Transport Group, which is a collaborative forum for companies most of which are directly involved in transport and port operations.

Isavia Regional Airports and Promote Iceland worked together during the past year on a project run by the Flight Development Fund to improve the marketing of airports in Northeast Iceland. In the past year, Isavia Regional Airports has been working closely with the marketing agencies of North and East Iceland. Isavia Regional Airports and Promote Iceland will continue with this project and advertise the airports, the infrastructure and services available, while the role of the marketing agencies will continue to be to advertise the destinations and goods availability and to prepare to receive future visitors.

In addition, Isavia regularly holds open meetings to provide information to the public and entities within the tourism sector as regards the company’s operations at Keflavík Airport, e.g. on construction and traffic forecasts within the travel industry.

the authorities

Communications with the authorities take many forms. The state is the owner of the company, and it follows the general owner policies of the state in its operations. The Ministry of Finance and Economic Affairs has overall control of the shares, and formal communications are carried out at shareholders’ meetings and the Annual General Meeting. Other communications with the owner take place during meetings which are convened as needed.

The Ministry of Transport and Local Government plays a two-fold role in connection with operations of Isavia: 1) as the professional ministry for air traffic issues, and 2) as a business partner of the company as regards the running of the domestic airport system. The company has a seat on three committees and boards operated by the Ministry: The Professional Board for Aviation Issues, the Facilitation Board and the Transport Board (permanent representative). The company has regular professional communications with the Ministry on aviation issues and close collaboration as regards the implementation of the service agreement. The company has representatives in various Ministry committees dealing with aviation issues.

Meetings are also held a few times a year with the Ministry of Industries and Innovation in connection with tourism issues. The Ministry has established a Flight Development Fund aimed at strengthening international flights to Akureyri and Egilsstaðir, and Isavia has a representative on the Board of the Fund. The company also has one representative on the Promote Iceland Board responsible for the ‘Inspired by Iceland’ and ‘Iceland Naturally’ marketing projects, which are intended to raise awareness of Iceland as a tourist destination. Meetings are also held with the Ministry of Foreign Affairs and the Icelandic Coast Guard in connection with defence-related operations at Keflavík Airport and the Airport’s organisational issues.

Isavia has a great deal of interaction with many public bodies, owing to the diversity of the company’s activities. The closest interaction is with the Icelandic Transport Authority, which issues operating permits for airports and flight controls and is responsible for the appropriate supervision of implementation and operations. Other monitoring bodies of note are the National Centre for Hygiene, Food Control and Environmental Protection, the Construction Authority, the Administration of Occupational Safety and Health, the Health Authorities, the National Planning Agency and the Environment Agency. Many public bodies have operating units within or in close collaboration with the company, such as the police, the Directorate of Customs, the National Civil Protection Authorities and the Coast Guard. The municipal bodies connected to the operation of Isavia are mainly the health authorities, fire protection and fire brigades.

Isavia is responsible for the implementation of two international agreements on flight navigation services. One is ICAO’s Joint Financing Agreement, with 24 states as signatories, which provides for the financing of flight navigation services within the Icelandic flight information region (Reykjavík IFR). The other is the agreement between the Icelandic and Danish authorities for flight navigation services within the flight information region of Greenland.

Isavia is also monitored by and collaborates with foreign entities, the principal one being the International Civil Aviation Organisation (ICAO), a United Nations agency. ICAO establishes international standards for all main aspects of civil aviation and monitors the performance of states and service providers. ICAO also monitors the performance of the abovementioned ‘Joint Finance’ agreement. As regard the company’s operations in Greenland and the Faroe Islands, Isavia is monitored by the Trafik- og byggestyrelsen (Transport, Construction and Housing Authority) in Denmark, and as regards collaboration on flight communications services in the North Atlantic, there is close communication with the Irish Aviation Authorities

suppliers

Responsible management of the supply chain is extremely important for Isavia’s operations. Establishing and maintaining a sustainable supply chain increases the likelihood of economical transactions, reduces operational risks and improves the company’s reputation. Increased demand for social responsibility encourages continuous improvements to supply chains, as the operations of the company have an effect on numerous aspects of the economy. The share of the group’s total business in 2020 with domestic suppliers was 76% and with foreign suppliers 24%.

The purpose of the company’s procurement department is to advise and assist employees in purchasing goods, projects and services and to monitor and supervise purchasing from suppliers. Midway through last year, new purchasing rules were approved for the company and the relevant procedures and service standards were updated accordingly. This was followed by training for employees in applying these new changes.

Alongside these changes, it was decided to start work on reviewing existing purchasing methods, starting with the parent company. The aim was to harmonise procedures for day-to-day purchasing to ensure even better traceability and transparency and to simplify monitoring and supervision. In the autumn, work began on improving and tightening up customs and import procedures at Isavia, Isavia ANS and Isavia Regional Airports. This went full-throttle at the turn of this year, with the introduction of electronic invoices. These companies now accept invoices only in electronic form (.xml). This simplifies and speeds up processing and is positive for the environment.

Purchasing at Isavia is governed by legal requirements on public procurement. Business relationships are established with the company’s largest suppliers based on their participation in a procurement procedure fulfilling the provisions of Act No. 120/2016 on Public Procurement and Regulation No. 340/2017 on procurement by parties operating in the water, energy, transportation and postal service sectors. The procurement procedure is implemented by means of various types of invitations to tender or price enquiries, for which companies must fulfil basic competence requirements such as not being in arrears with withholding tax, public levies and statutory pension fund dues. There is also a chain-of-responsibility clause in purchasing documentation.

A negotiated process following a publication of tendering specifications is used as far as possible in large and complicated procurements. This process ensures communications with tenderers during the tendering procedure, which can be of great advantage. Negotiations reduce the company’s risk and increase the likelihood of a correct needs analysis of resources and delivery, which again ensures increased economisation.

In aspects for which domestic know-how is lacking as regards services and manufacture, the company has often included the condition in tender documents that international suppliers may bid for the goods, tasks or services in co-operation with Icelandic suppliers. This is done for many reasons, not least social, i.e. collaboration between domestic and international suppliers feeds knowledge and legacy into the national economy.

The Code of Conduct for Suppliers is attached to all of our contracts. This code requires suppliers used by the company to adhere to the rules it contains and to ensure that their own suppliers do likewise

All tender procedures and major price inquiries require basic eligibility of tendering companies. For instance, parties who are in default of withholding tax, public levies and statutory pension fund dues will be disqualified.

Isavia contracts contain provisions on data protection which comply with new provisions laid down in EU data protection legislation, where appropriate. The Code of Conduct for Suppliers is attached to all of our contracts. This code requires suppliers used by the company to adhere to the rules it contains and to ensure that their own suppliers do likewise. Upon request, suppliers must be able to demonstrate that these rules are being followed.

In order to limit as far as possible the likelihood of the use of forced, compulsory or child labour for resources and equipment purchased in domestic and international markets, the supplier’s Code of Conduct is always included in the tender documentation and must be complied with. To ensure the cost traceability and co-ordinated payment terms, the company’s business terms are always used for procurements. Both the Code of Conduct and the company’s business terms are available on the company’s website.