Carrier Icelandair is rolling out a range of UK promotions in a bid to combat low-cost carrier Go launching flights to Reykjavik.
A range of packages including accommodation, excursions, free tickets to clubs and public transport travel cards will be unveiled next month in response to Go’s launch in May.
UK general manager Hannes Hilmarsson said the carrier would not be matching Go’s headline price but he promised to introduce competitive flight-only prices.
British Airways’ Go starts summer-only Stansted-Reykjavik flights on May 25 with a lead-in return fare at £120. Icelandair’s lowest price is £179 return from Heathrow – down from £272.
New Icelandair packages start at £289 for two nights’ accommodation for weekends. The carrier is also working with Reykjavik 2000, a body set up to promote the capital as the European City of Culture. Hilmarsson claimed BA’s willingness to fund Go would play into the Icelandic carrier’s hands.
He said: “Go seems to have access to deep pockets from its parent company BA and is spending massively on advertising, building Reykjavik’s awareness even further, which will strengthen Icelandair’s position and products.”
Hilmarsson said Go’s flight times and apparent lack of accommodation in the Icelandic capital would also be to Icelandair’s benefit. He claimed Icelandair’s 12 weekly Heathrow-Reykjavik flights, a summer increase of one from May 17, were more convenient than Go’s four weekly services from Stansted due to better timings.
But a spokesman for Go said the type of travellers using its services to Iceland would not be dissuaded by flight times – Go is expecting young clubbers on its ex-UK flights. From Iceland, it expects passengers who are only planning a short stay in London.
He said although Go is only planning to operate the service until October, healthy loads may lead to increases in schedules.