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Organisational changes at Isavia

Organisational changes at Isavia

The Board of Directors of Isavia has agreed to make changes to the company's organisational structure. The changes are intended to separate different operating units in the company and are expected to take formal effect on the 1st of January 2020.

The changes mean that the Airports Operations Division, which operates domestic airports, and the Navigation Services Division, responsible for navigation services, will be transferred to subsidiaries while the operation of Keflavík Airport will remain with the parent company Isavia. Tern Systems, which develops and manufactures software for navigation services, and Suluk, responsible for navigation services in Greenland, will be operated by the new Navigation services company. The Duty-Free Store will continue to be a subsidiary of the parent company Isavia.

The decision of the Board to transfer sections of Isavia to subsidiaries is made on the basis that the operational units are dissimilar in nature. Keflavík Airport is operated in a strongly competitive market which however offers the greatest business opportunities while bearing, at the same time, by far the greatest operational risk. The operation of domestic airports, however, is for the most part dependent on subsidies from the Icelandic State as it is a part of the state-owned public transport system. The operation of navigation services, moreover, is largely on the basis of international agreements on overflights over the North Atlantic which is based on a cost recovery system. As a result of the changes, each part of the operation will have its own board of directors and can set their own goals and focus.

Isavia's support divisions will remain with the parent company. One of these, however, Development and Administration, will be discontinued in its current form and its tasks will be transferred to other divisions. A new support division will be established and will be responsible for Digital development and IT. The Office of the CEO will be allocated defined tasks.