Pilot Strike Could Cost Billions

Icelandair, which is currently negotiating a new collective bargaining
agreement with its pilots and flight attendants, has released a statement announcing that the
strikes could cost the company between 1.5 – 1.7 billion ISK, reports RÚV.

The statement also stipulates that it is possible the cost could be even higher due to liability costs paid out to passengers on cancelled flights.

As reported, the first strike was held on May 9th. Icelandair cancelled 26 flights because of the strike which affected 4.500 passengers. An overtime ban has meant several flights have been cancelled since.

Prior to the strike, the Icelandic Airline Pilots’ Association rejected a one year contract with a pay increase of 2.8%.

The strike is beginning to have ramifications outside the airport as several hotels report a flood of reservation cancellations.

“I think it is unlikely that the hotels will do anything other than lose from this [strike],” said Jóhann Sigurólason, Reservation Manager at Hótel Grand. There have been over 100 cancellations at Hótel Grand since the strike last Friday.

Representatives of the Icelandic Federation for Motor Trades and Repairs has alsoexpressed concerns over car rental cancellations.