Government Guarantees Line of Credit for Icelandair

Keflavík airport Icelandair
The Icelandic government has decided to guarantee a line of credit for Icelandair airline. The guarantee amounts to ISK 16.5 billion ($121 million/€101 million).
Negotiations between Icelandair group and the Icelandic government have taken place in recent weeks, in co-operation with the airline’s banks, Íslandsbanki bank and Landsbankinn bank. The initiative is subject to the two parties reaching an agreement on the terms, the approval of the Icelandic Parliament, and the success of Icelandair’s planned refinancing initiative.
Icelandair has postponed its public stock offering from August until September. Úlfar Steindórsson, chairman of the airline’s board, told Vísir that the reason for the postponement is a delay in negotiations with credit holders as well as the airplane manufacturer Boeing, due to problems with their Max 737 planes. Icelandair had to ground a number of Max 737s and an agreement was in place for the purchase of additional aircraft.

Icelandair CEO Bogi Nils Bogason stated earlier this month that the prerequisite for the government line of credit was that the company’s planned public stock offering was successful. The two factors are intertwined, however, as investors require the details of the line of credit terms.

Puffins Return to Traditional Take-Off Time

The puffins in the Westman Islands are taking off at a usual time of the year, after having left the country late for the last 17 years.
Erpur Snær Hansen, head of South Iceland Nature Research Centre, says that the puffins have taken off to southern pastures 2-3 weeks later than they’ve done historically. This has been the case for the last 17 years, but this year it looks like the puffins will revert back to the departure time they had stuck to for the 60 years before that. They’ve started showing signs that they’re getting ready to leave the Westman Island.  “It’s a good sign,” said Erpur who expects that the puffins will have departed by the end of August.
Both the Westman Islands and Breiðafjörður bay saw a drastic dropoff in puffin egg-laying rates this summer. Over 60% of the Icelandic puffin population lays eggs in these two places.
The usage rate of puffin nests was 57% in Breiðafjörður this year, down from 83% the year before. The rate was 57% in the Westman Islands, falling down from 78% the year before.
Despite this, Erpur says that the young fared well which can be traced to an abundance of available food compare to the last couple of years.