Niceair’s rise and fall: connecting northern Iceland’s skies to Europe

In recent years, northern Iceland made a significant bid to strengthen its air connections to Europe. At the centre of this effort was Niceair, a virtual airline based in Akureyri, the largest town in the north. The company sought to meet the demand for better international access by launching flights to several major European cities, with the hope of bringing travellers directly to the region without the need to connect through Reykjavík.

Launching a local airline vision

Niceair was announced in February 2022, its mission backed by a consortium of investors including regional companies and figures such as Samherji, Norlandair, KEA and Kaldi. Instead of operating its own aircraft, Niceair operated as a virtual airline. This meant it did not possess its own air operator’s certificate, but instead branded flights were flown by a partner airline. The carrier of choice was Hi Fly Malta, which supplied a 150-seat Airbus A319 for the routes planned by Niceair.

The service officially began on 2 June 2022 and quickly took symbolic flight: the following day, Niceair launched its first scheduled route from Akureyri to London Stansted. Future offerings also included flights to Denmark and Spain, with planned expansion to Manchester and Düsseldorf. These routes reflected a desire to increase access for both residents of the north and international visitors.

Complications in the clouds

The reality of operating international flights from Akureyri brought unexpected difficulties. On its inaugural return service between London and Akureyri, Niceair found itself hindered by post-Brexit air service rules. The new treaty between Iceland and the United Kingdom restricted airlines from third countries (such as Hi Fly Malta) from operating scheduled flights between the two nations on behalf of Icelandic brands. This forced the suspension of London flights and meant that planned services to Manchester never launched.

Operational challenges continued into 2023. In March, Niceair cancelled its proposed Düsseldorf route, with hopes to launch it at a later date. Less than a month later, a major setback occurred: Hi Fly Malta’s Airbus A319 was detained by its lessor, leaving Niceair without an aircraft. With no replacement available, all flights were suspended on 5 April 2023. By May, the airline laid off its staff and entered insolvency, formally ending its short but notable presence in Icelandic aviation.

TopicsAkureyriHi Fly MaltaIceland aviationNiceair