Icelandair mechanics strike could affect many industries, minister says

Finance and Economic Affairs Minister Daði Már Kristófersson says the government is closely monitoring a possible strike by Icelandair mechanics, which could affect tourism, other industries and the public’s ability to travel, mbl.is reports.

The strike is scheduled to begin at midnight on Tuesday night and could have broad effects across Iceland’s economy, Daði Már said.

Guðrún Hafsteinsdóttir, chair of the Independence Party, asked Daði Már during an unscheduled question period in Alþingi, Iceland’s parliament, how the government viewed the dispute between Icelandair and the mechanics from a public finance perspective. She also asked what scenarios the ministry had prepared for the strike’s impact on state revenue and next year’s financial results.

Guðrún said the government’s budget proposal continued to increase charges on tourism, one of the country’s largest export industries and a significant source of tax revenue.

She said the Icelandic Travel Industry Association had reported that the strike’s effects were already being felt, with companies across the country receiving numerous cancellations and inquiries about cancelling or postponing trips.

“One of the nation’s largest export industries is at stake, as are the revenues of thousands of companies and, of course, state revenues, which are already under pressure,” Guðrún said.

Daði Már said the strike would have “significant effects” not only on tourism but on many industries and on Icelanders’ freedom to travel. He said it was important to monitor developments closely, while noting that the parties were still negotiating.

“It is up to them to tackle the task of finding common ground and reaching an agreement. I still hope that they will succeed,” he said.

Daði Már said air transport was of national economic importance to Iceland, not only because of tourism but also because of the country’s links with the outside world and a significant share of transport, including fresh fish.

He said the government was therefore monitoring the situation closely and would take whatever measures were necessary at any given time.