History
The airline was established on 10 February 1986 by Captain Arngrimur Johannsson and his wife, Thora Gudmundsdottir. It started operations in 1986. Its first contract came when Caribbean Airways wet-leased a Boeing 707-320 from them for its London to Barbados flights. In 1988, the airline leased planes for Air Afrique to be used during the Hajj pilgrimage trips. This would become an important part of the structure of Air Atlanta Icelandic later on. Sudan Airways and Lufthansa were among the other airlines that benefited from leasing passenger airplanes from Air Atlanta Icelandic during the late 1980s, as well as Finnair, which leased a Boeing 737 from the Icelandic company.
It was in 1992 that Air Atlanta Icelandic was able to take passengers to the sky with its own airline operation. Its first flight was with a Lockheed L-1011 plane. Later in 1992, Air Atlanta Icelandic participated in the United Nations peacekeepers airlifting, flying the UN representatives from former Yugoslavia to Nigeria and France.
In 1993, the Boeing 747 arrived, and Saudia became one of the first airlines to lease that plane from Air Atlanta Icelandic, also for Hajj flights. After signing a contract with Samvinn Travel, Air Atlanta Icelandic began operating domestic charter flights as well. Later in 1993, a flight from Phnom Penh to Bangkok was launched using a Boeing 737.
By 1994, Air Atlanta Icelandic had obtained rights to operate service from many other international countries, including the United States, from where it had a flight to Colombia; and the Philippines, from where it was allowed to operate domestic charter flights. About that time, it began to offer flights within Europe and began service to Portugal.
In 1996, a couple rented an Air Atlanta Icelandic L-1011 to have a sky-wedding. The couple and its wedding guests were treated to a flight over the Arctic Circle, while the wedding was performed inside of the jet.
1997 saw the arrival of contracts with airlines such as Britannia Airways and Iberia, which would use an Air Atlanta Icelandic plane for its routes from Barajas International Airport in Madrid to José Martí International Airport in Havana and to other points in the Caribbean. That year also saw the arrival of the airline's first Boeing 747SP plane, which would later be utilized by government officials, sports teams, The Rolling Stones, and others.
In 1998, Air Atlanta Icelandic leased planes for British Airways. In 1999, Magnus G. Thorstenn was named the company's new CEO. The airline became a fully wide bodied airplane airline in 1999 when it sold the last of its Boeing 737s. In 2000, Air India joined the growing list of airlines that have leased airplanes from Air Atlanta Icelandic airlines.
In 2003, Air Atlanta Icelandic expanded into the United Kingdom with its subsidiary, Air Atlanta Europe, which operated Boeing 747s ad-hoc, charter and for the Florida tour operator, Travel City Direct.
In March 2004, the company acquired a 40.5% stake in the UK charter airline Excel Airways. That stake later increased to 76.9%. In January 2005, the Avion Group was formed, and Air Atlanta Icelandic and Islandsflug merged under the Air Atlanta Icelandic brand name.
In 2005, the Avion Group acquired Eimskip, a leading Icelandic sea transportation company, and Travel City Direct, a UK holiday company. In 2006, the Avion Group announced the purchase of the entire issued share capital of French charter airline Star Airlines, the second largest charter airline in the French market. Star Airlines operated charter flights mainly to destinations in Africa, the Middle East, and the Mediterranean, in addition to regular services to the Libanon, Male, and Mexico.
In June 2006, Air Atlanta Icelandic wet-leased one Boeing 747-200 to Yangtze River Express to operate cargo freight between Shanghai - Anchorage - Los Angeles.
In October 2006, the Avion Group changed its name to HF Eimskipafélag Íslands, and at the same time sold UK Leisure Group Excel as well as 51% of Avion Aircraft Trading. A decision was also made to merge both Excel Airways and Air Atlanta Europe into one airline. This was completed by October 2006.
In mid 2007, the airline decided to shift its focus to Air Cargo operations. The airline planned to move to cargo aircraft and laid off most of its passenger aircraft aircrew. Today, the company focuses on both passenger aircraft and cargo aircraft.
On 25 March 2008, an Air Atlanta Icelandic Boeing 747-300 was destroyed after engine number 3 caught fire soon after landing.
Britflights cancelled plans to operate aircraft from Air Atlanta Icelandic from the UK to Canada from June 2011, citing fuel uncertainties.
Air Atlanta Icelandic operated two Boeing 747-400s for National Airlines (N8) in the year 2011. One flew cargo charter flights and the other one was wet-leased to Cargolux for a period of time.
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