History of Isavia
Icelandic Civil Aviation Administration
The Icelandic Civil Aviation Administration was founded in 1945 and took over the running of Reykjavik Airport and the Area Control Center from the British Air Force in the following year. During the temporary absence of the American forces from Keflavík Airport in 1947, the Icelandic Civil Aviation Administration also took over various functions in the running of the airport together with the American airport company, such as a part of air traffic control and the running of the airport terminal. This arrangement lasted until 1953, when all operations of the Icelandic State at Keflavik Airport and communication with the American Defence Force were moved to the Foreign Ministry.
Separation of Air Navigation and Airport Operations
In 2006, changes occurred in the arrangement of aeronautics in Iceland with the mandatory separation of air navigation services and airport operations from administration and oversight operations of the Icelandic Civil Aviation Administration. The change can be traced to changes which had occurred in the environment of air transport and new requirements of the International Civil Aviation Organization and European Union concerning separation of oversight and operation roles in aviation services. A new state-owned limited company, Isavia Ltd. (Flugstoðir ohf.), took over the operation of Icelandic airports and air navigation services outside Keflavik Airport in the beginning of 2007, including air navigation services in international aviation.
Merger of Keflavik International Airport and Isavia
Shortly after the establishment of Keflavik International Airport Ltd., the Minister of Transport, Communications and Local Government appointed a working group to examine the benefits of merging Keflavik International Airport Ltd. and Isavia Ltd. with the purpose of improving profitability, efficiency, expertise, and service in the management of airports and air navigation services, and facilitating positive urbanisation in Iceland. The working group recommended that the companies should be merged as soon as possible, and a bill to that effect was passed into law in December 2009.
The Minister of Transport, Communications and Local Government initiated the establishment of a new limited state-owned company, Isavia Ltd., which took over all operations, assets, and obligations of the aforementioned companies on 1 May 2010. The company operates all airports and air navigation services in Iceland and manages their development with accompanying air terminals and structures, in addition to developing and conducting other aviation related operations. The Minister of Finance is responsible for the State’s share in the company, whereas the Minister of the Interior is responsible for strategic planning in collaboration with the company’s Board of Directors. The Icelandic Transport Authority is responsible for administration and oversight of the flight operations of the company.