Air traffic controllers in Iceland and new public corporation Flugstodir ohf. came one step closer to reaching an agreement about the wages of air traffic controllers on Sunday.

Loftur Jóhannsson, head of the Association of Icelandic Air Traffic Controllers, told Morgunbladid that progress had been made at the meeting, which will continue today.

Jóhannsson said both parties finally seemed to agree on the issues at stake and said he is optimistic about reaching an agreement.

Thorgeir Pálsson, CEO of Flugstodir, told Morgunbladid that Flugstodir had made new offers to air traffic controllers regarding pension funds, which was one of the issues on which the two parties disagreed.

As of Monday, Flugstodir became the new employer of air traffic controllers in Iceland, but as air traffic controllers were not happy about their wages they were going to resign on January 1. Discussions have been going on since September.

Air traffic in Iceland has been controlled according to a back-up plan since Monday, as air traffic controllers are currently not working, but there has been no disturbance of flights.

Click here to read more about the air traffic control dispute.