Four billion ISK for infrastructure projects at Keflavík Airport

On 7 April 2020, it was announced that the Ministry of Finance and Economic Affairs had decided to increase the share capital of Isavia ohf. by ISK four billion on the condition that the Company embark on infrastructure projects at Keflavík Airport during the course of the year.

This increase in share capital makes it possible for Isavia ohf. to initiate two projects, one of which relates to design for the next large construction work at the Leif Eiriksson Air Terminal and the other related to the design and construction of roads and runways at Keflavík Airport.

“The decision of the Ministry of Finance and Economic Affairs to support our company makes it possible for us to embark on projects we would not otherwise have had the ability to initiate in the present circumstances”, says Sveinbjörn Indriðason, CEO of Isavia. “Not only will such projects create new jobs in the construction itself but it will also make it possible for us to safeguard a large number of jobs within Isavia. In addition, the injection of funds will have a positive effect on the Suðurnes community. This will help us to emerge stronger from these difficult times and will make the airport better able to compete in the future.”

The estimated number of new jobs created in these projects is around 50 to 125 for each month until the middle of 2021. The measures will open up opportunities for further construction at Keflavík Airport, earlier than anticipated, to the tune of more than ISK three billion. The total scope of investments connected with the share capital increase can, therefore, amount to more than ISK seven billion over a two–year period.

“These are demanding times. We are extremely grateful for this important decision made by the Ministry of Finance and Economic Affairs which makes so much of a difference for Isavia, the Suðurnes region and society as a whole,” says Sveinbjörn.