FL GROUP
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FL GROUP, formerly known as Flugleiðir, is an Icelandic investment company with an emphasis on investment in flight and tourism. The company was founded on July 20 1973 under the name Flugleidir. It was formed as a holding company for Loftleidir and Flugfélag Íslands FL GROUP is best known for its subsidiary Icelandair. Icelandair, "Loftleidir Icelandic" and other companies of FL GROUP have been leaders in the Icelandic flight and tourism industry for about 70 years.
Organization and Subsidiaries
FL GROUP consists of 14 independent companies:- FL GROUP
- * Flugleidir Investments, investment company
- * Fjárvakur, accounting, reporting and salary processing for most of FL GROUP's companies
- * Icelease, buying, selling and leasing of aircraft on international market
- Icelandair Group
- * Icelandair, international airline
- * Icelandair Cargo, transatlantic air transport company
- * Loftleiðir Icelandic, charter airline
- * ITS Technical Services, aircraft maintenance and technical services
- * IGS Ground Services, handling, in-flight catering and cargo warehouse services at Keflavík airport
- The FL Travel Group
- * Air Iceland, domestic airline
- * Icelandair Hotels, hotel chain
- * Iceland Travel, travel agency
- * Reykjavik Excursions, travel service company
Other notable assets
- Sterling Airlines, Danish low-fare airline
- Blue Cargo, cargo airline
- Finnair (10.025% share), Finnish airline
History
Before 2005 change
The company that is nowadays called FL GROUP was founded in 1973. In the beginning it was a holding company for "Loftleiðir" and Flugfélag Íslands under the name Flugleidir, a hybrid of the two old names. In 1978 Flugleidir took over all assets of both companies. Until then "Loftleidir" had used "Loftleidir Icelandic", "Icelandic Airlines" or just "Icelandic" for international marketing and Flugfélag Íslands used "Icelandair". That same year the name "Icelandair" was to be used solely for international marketing. Flugleiðir was still the official name of the copmany until 2005.
After 2005 change
In 2005, the company known as Flugleiðir was changed to an investment company called FL GROUP. The airline had been spun off into a subsidiary named Icelandair in 2002. On October 23, 2005 FL GROUP announced its acquisition of the Danish low-cost airline Sterling Airways. In addition, FL GROUP holds a 16.18% stake in British "no-frills" carrier easyJet. On January 6, 2006, Hannes Smárason, CEO, stated that a merger of easyJet and Sterling was a possibility.More changes in early 2006
In early 2006 Ferðaskrifstofa Íslands was sold to Sumarferðir and Icelandair Car Rental (Hertz) was sold to Magnús Kristinsson, the owner of Toyota in Iceland.In February 2006 FL GROUP announced plans to list its subsidiary Icelandair Group in Iceland Stock Exchange.
FL sold its 16,9% stake in British no-frills airline easyJet in April 2006 for €325m, returning a profit of €140m on its investment. FL had first invested in easyJet in October 2004, taking an 8,4% share, increasing this over the course of 2005.
Management
Board of directors
- Skarphéðinn Berg Steinarsson, Chairman
- Þorsteinn M. Jónsson, vice Chairman
- Einar Ólafsson
- Hannes Smárason
- Jón Ásgeir Jóhannesson
- Magnús Ármann
- Sigurður Bollason
- Kevin Stanford
- Smári S. Sigurðsson
Key Managers
- Hannes Smárason, President and CEO
- Jón Karl Ólafsson, President and CEO, Icelandair Group
Principal Stockholders
FL GROUP's 15 biggest stockholders as of January 5, 2006- Landsbanki, 30,24%
- Oddaflug, 19,98%
- Glitnir, 9,33%
- Arion safnreikningur, 7,88%
- Materia Invest, 6,97%
- Kaupthing Bank, 2,97%
- Straumur - Burðarás Investment Bank, 2,19%
- Gildi - Pension Fund, 1,26%
- Saxbygg, 1,05%
- MP Investment Bank, 0,89%
- Pension Funds Bankastræti 7, 0,83%
- Búnaðarbankinn's Investment Fund, 0,76%
- Pension Fund of Commerce, 0,64%
- Sund, 0,57%
- VVÍB, fund 6, 0,44%
References
[FL Group's Web Site]
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