Isavia’s financial position has strengthened considerably in recent years in line with its increased scope of operations. This is an important prerequisite to enable the company to cover the increased leveraging with the necessary developments ahead. The company has embarked on extensive and costly construction at Keflavík Airport over the past few years in order to respond to the significant growth in traffic.
A MAJOR INDUSTRY IN STEADY GROWTH
Isavia, the Icelandic authorities, the airlines and other stakeholders have been successful in promoting Keflavík Airport as a destination, particularly outside peak hours. Passengers outside peak hours have grown proportionately faster than during peak hours. Keflavík Airport is the largest gateway into Iceland and is one of the most important individual aspects in the infrastructure of the tourism industry. It is important that care is taken as regards the enlargement plans for Keflavík Airport, which are necessary for the airport to be able to welcome the growing number of passengers in the future.
The development of the airport has great potential of becoming profitable, both as regards the operation of the airport itself and the Icelandic economy as a whole. It is, however, important to keep in mind the overheating effects of the development and ensure that the build-up goes hand in hand with the sensible forecast of the increase in passengers and opportunities relating thereto.
SCOPE OF OPERATIONS
Two factors have the greatest impact on the scope of Isavia’s operations: the number of flight movements and the number of passengers. Isavia’s income from Keflavík Airport can be attributed first and foremost to the airlines that land at the airport, rent income from catering and retail outlets as well as other income from renting facilities.
SCOPE OF AIRPORTS AND INFRASTRUCTURE
Three aircraft operators ran scheduled flights within Iceland, i.e. Air Iceland Connect, Flugfélagið Ernir and Norlandair. Other aircraft operators who regularly used Isavia services were Mýflug, Circle Air, Atlantsflug and Norðurflug. Vesturflug / Blue West and Helo operate a helicopter service at the company’s airports.
SCOPE OF AIR NAVIGATION SERVICES
The largest customers of Isavia’s flight navigation services are Icelandair, United Airlines, SAS, Lufthansa, British Airways, Air Canada, Delta, Emirates, Norwegian, Air Greenland, Qatar Airways and KLM. These airlines fly the greatest number of kilometres within the Icelandic flight traffic control area.
SCOPE OF OPERATIONS AT KEFLAVIK AIRPORT
The Leif Eiriksson Air Terminal was brought into use in April 1987. It was, at the time, around 20,000 m2. At present, it is approximately 73,000 m2, 3.5 times larger than when opened. During the same period, the number of passengers passing through the airport has increased thirteen-fold, rising from 750,000 the first year to 9.8m in 2018.
During the summer of 2018, 30 airlines flew from Keflavík Airport to more than 100 destinations. Ten airlines flew to and from Iceland all year round. Two airfreight airlines fly from Keflavík Airport throughout the year. Numerous passengers take advantage of Keflavík Airport as a transit airport on routes between Europe and North America. The minimum flight connection time for passengers at Keflavík Airport is 25 minutes.
Isavia has, with the assistance of an incentives system, been quite successful in getting airlines to fly to Iceland over the winter months. In addition, Isavia has marketed time slots outside peak hours each day, with the aim of making better use of the airport’s facilities.
CODE OF CONDUCT FOR SUPPLIERS
Isavia is a signatory to the United Nations Global Compact (UNGC) and has thereby committed to ensuring that its policies and practices comply with the UNGC’s Ten Principles on human rights, labour, the environment and anti-corruption. Isavia has adopted a Code of Conduct for Suppliers in accordance with the Ten Principles. Suppliers with which the Company does business are required to comply with the Code of Conduct and ensure that their suppliers do the same. Upon request, suppliers must be able to confirm their compliance with this Code of Conduct.
“Supplier” means a business or individual that provides Isavia with goods or services.
Isavia requires suppliers to act as follows:
FREEDOM OF ASSOCIATION AND THE RIGHT TO COLLECTIVE BARGAINING
Recognise and respect the right of employees to freedom of association and to enter into bargain collectively. If the right to freedom of association and/or to enter into collective bargaining is restricted by law in the country in question, the supplier must permit its employees to elect a representative to defend their rights in the workplace.
FORCED AND COMPULSORY LABOUR
Guarantee that their employees perform their work without force or compulsion and are free to leave employment with reasonable or statutory notice.
Not employ minors to perform work that is hazardous or detrimental to their health and safety. Children’s right to development, welfare and education shall be respected. Suppliers shall at least comply with the Convention of the International Labour Organisation (ILO) on the minimum age for admission to employment and work.
Ensure that their employees have equal opportunities and equal rights without discrimination on the basis of gender, race, religion, age, disability, sexual orientation, nationality, opinions, economic position, social background or position in any other respect. Suppliers shall create a work environment characterised by equality, tolerance and mutual respect.
WAGES, WORKING HOURS AND OTHER CONDITIONS OF WORK
Pay their employees regular wages (at least every month) and ensure that the payments, or any parts thereof, are not retained by intermediaries. Suppliers must pay at least the minimum wage stipulated by law, rules and/or collective agreements in the country in question. Suppliers must keep a record of wage payments and be able to demonstrate that such payments have truly been made. They shall respect laws and rules concerning the rights of employees, including rest, duration of work, sickness rights and other wage terms.
HEALTH AND SAFETY
Ensure that employees’ work environment is safe and without risk to health. Suppliers must comply with the laws and rules of the country in question with regard to conditions in the workplace and provide their staff with appropriate protective equipment and training in occupational health and safety. Suppliers must do everything in their power to minimise risk of accident and any negative effects on employee health.
Respect internationally proclaimed human rights. Suppliers must create and maintain an environment where employees are treated with respect and no mental and/or physical abuse or threats of such abuse are tolerated.
Isavia requires suppliers to be aware of the environmental impacts of their activities and to seek to minimise these in an effective manner.
ETHICAL BUSINESS PRACTICES
Always work against corruption, including bribery, extortion and fraud. Suppliers must not offer, solicit, require, give or receive bribes, whether directly or indirectly, for themselves or others. Suppliers must operate in accordance with proper and sound business practices and customs and apply accepted ethical practices in their business dealings.
CONFLICT OF INTEREST
Avoid any conflict of interest in their business dealings with Isavia. Conflict of interest include, e.g., situation where a supplier’s representative, his/her relatives or friends may have a personal interest in the transaction in question. Suppliers must without exception report any potential conflict of interest to Isavia.