Icelandair Group hf.
Icelandair Group hf. sells the Latvian subsidiary SmartLynx
Since the completion of the financial restructuring of Icelandair Group hf. (the Group), it has been the Group’s intention to sell its subsidiary in Latvia, SmartLynx (the Company). At year end 2011 the Group entered into an agreement where the management of SmartLynx purchased the entire share capital of the Company. Conditions set out in the agreement have now been met in full.
The sale will be included in the annual accounts for 2011 and will have positive impact on the bottom line in the amount of ISK 1.1 billion, of which 0.7 billion is due to income tax reductions. The changes in equity are marginal.
The Group will remain a guarantor in terms of the lease of two Airbus 320 aircraft until April 2012 and two Boeing 767 until the end of the year 2012. These aircraft are operated under SmartLynx’s air operator’s certificate.
Bjorgolfur Johannsson, President and CEO, tel: + 354 896 1455
Bogi Nils Bogason, CFO, tel: + 354 665 8801