Memorandum of understanding signed with Icelandair

Hafnarfjörður Municipality and the Icelandair Group sign a letter of intent on future development in Hafnarfjörður.

The City of Hafnarfjörður and the Icelandair Group today signed a letter of intent regarding the future development of Icelandair's headquarters at Flugvellir 1 in Hafnarfjörður. The company already has part of its operations at Flugvellir and plans to relocate and thereby consolidate its sites in the capital region by the end of 2023 at the latest. Over the next two years, the company plans to build an extension to its existing premises and create an attractive and sustainable facility at a new location for its staff and other visitors.

^{It is planned that the company will build next to its current premises at Flugvöllar 1 in Hafnarfjörður. Here
Part of the group involved in the project can be seen at the training centre.
Icelandair.}  

,The fact that one of the country's largest companies has now decided to build its headquarters in the town is fantastic news for the people of Hafnarfjörður and for the town itself. Icelandair's arrival in the town is part of a wider development, as companies are increasingly moving their operations here. The decision by the Icelandair board is a confirmation that the policy of the municipal authorities to offer a highly competitive environment and good conditions for businesses is paying off. The operations and premises will undoubtedly be another boost for the rapidly expanding residential and commercial area in a beautiful and accessible location.“ says Rósa Guðbjartsdóttir, Mayor of Hafnarfjörður.

„It is exciting to begin the development of new headquarters at the Airport in Hafnarfjörður, where we have the opportunity to consolidate our operations in the capital region in one location, whilst also being closer to Keflavik Airport. The design and layout of the new headquarters will be based on the needs of the company's operations, both now and in the future, and our experience with flexible working arrangements over the past few months will undoubtedly serve us well in this work, in which staff from all over the company will participate,“ says Bogi Nils Bogason, CEO of Icelandair.

Plot extended to the east and west

The current Icelandair plot of land at Flugvöllar 1 is 42,979.8 square metres, and the lease agreement is for a 25-year term from 1 May 2014. An expansion of the plot is planned to the west by up to 6,000 square metres and to the east by up to 6,500 square metres. The plot's permitted building volume is 21,489.9 square metres and the utilisation ratio is 0.5. Payment of road construction charges shall be in accordance with the agreement between the parties, dated 26 May 2014, for the development at Flugvöllar 1. The lease agreement will be renewed in connection with the proposed development, at which point its term will change to 50 years, commencing in 2021. The works may be phased in accordance with the municipality's approval. 

A letter of intent can be found in the minutes of the Town Council meeting of 14 January 2021 – see item 2.