Icelandic turboprop airline Mýflug lays off all its pilots after business downturn

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Leifur Hallgrímsson owner of Myflug
Leifur Hallgrímsson owner of Myflug

Iceland’s turboprop airline Mýflug has laid off all thirteen of its pilots due to adverse market conditions, with managing director Leifur Hallgrímsson expressing hope to rehire many, if not all, before the notice period ends.

Currently, Mýflug is only operating a single flight between Reykjavik and Höfn in Hornafjörður, which does not require the staffing of thirteen pilots.

The airline recently submitted bids for flights to the Westman Islands and Húsavík but has not received any responses from Vegagerðin regarding these proposals.

Mýflug has faced significant operational challenges this year, including losing an air ambulance contract and reportedly incurring losses of tens of millions of krónur from its investment in the airline Ernir. In 2023, Mýflug acquired a majority stake in Eagle Air, which faced financial difficulties, and the two airlines merged into a single entity under the name Mýflug.

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Earlier this year, Vegagerðin contracted Mýflug for flights from Reykjavik to the Westman Islands and also to Húsavík.

Aircraft of the Beechcraft King Air B200 model, which accommodates nine passengers, and the Jetstream 32, which seats 19 passengers, will be used for this service.

Mýflug, also known as Myflug Air, was founded in 1985 and named after Lake Mývatn in Northern Iceland.

The airline operates two types of aircraft: the Beechcraft Super King Air and the Cessna 206, focusing on ambulance flight services in Iceland and charter flights to airfields in Iceland and Greenland.

Additionally, Mýflug offers sightseeing flights around Lake Mývatn during the summer months.

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