Tern Website:

Duty Free Website:


Isavia Subsidiaries

Isavia Ltd. has two subsidiaries; the ATC systems developer Tern Systems and Duty Free Store Ltd. which handles the running of duty free shops in the Leif Eiriksson air terminal.

Tern Systems

Tern Systems was established in the fall of 1997 by the Systems Engineering Laboratory of the University of Iceland and the Icelandic Civil Aviation Administration. The operation was based on two decades of collaboration between these parties on development, research, and knowledge acquisition of every kind in the fields of air traffic control and air navigation technology.

The original purpose behind the establishment of Tern Systems was to take over development work which had been built up in the field of air navigation technology. In the beginning of 2007, when responsibility for the running of airports, air navigation services, and air traffic control services were moved to Isavia, the share of the Icelandic Civil Aviation Administration was transferred to Isavia Ltd. with the University of Iceland continuing to be a shareholder. In 2012, Isavia bought the University's share and became the full owner of Tern Systems.

Tern Systems has worked on the development of system solutions for air traffic control. These are solutions used in the operation of area control centers, control towers, and in the training of air traffic controllers. Solutions from Tern Systems are, for example, used in Greenland, Iceland, Ireland, Kosovo,Morocco, South Korea and Indonesia.

The company has a staff of 48 people.

Web site of Tern Systems

Duty Free Store Ltd.

Duty Free Store Ltd. (Fríhöfnin ehf.). operates six shops in Leifur Eiríksson Air Terminal, four for departing passengers, one intended for transfer passengers from countries outside the Schengen Area, and the sixth on the 1st floor for arriving passengers. The main product categories offered by the Duty Free Store are alcohol, tobacco, sweets, cosmetics, toys, and fashion clothes.

The departures store offers international brands which are well known and popular throughout the world. There has also been an increase in the range of Icelandic products for sale.

Dutyfree Fashion offers well known brands for women and men. Icelandic design is prominent after improvements carried out this summer which make the Icelandic brands stand out more than before.

Iceland Dutyfree in the south part of the air terminal only offers Icelandic products, for example, cosmetics, alcohol, sweets, and stylish accessories.

Last minute shopping is based on offering customers the most popular items available, if they forgot to purchase something in the main duty free shop. The most popular products on the top ten sales list are available in this store.

Dutyfree outside Schengen is a shop for passengers who travel to countries outside the Schengen Area. The shop offers international brands in alcohol, tobacco, cosmetics, and sweets. The shop furthermore offers a fun range of Icelandic products which appeal to tourists.

The arrivals store offers passengers great service in a spacious and bright store where they can enjoy purchasing tax-free goods on arrival in Iceland while they wait for their baggage. In this way, tourists do not have to carry shopping bags from other countries on flights.

We welcome you to visit the Duty Free Store and wish you an enjoyable trip.

Web site of the Duty Free Store

Fríhöfnin Tern Systems