Icelandic road and coastal administration reaches agreement with Mýflug for flights to Höfn in Hornafjörður

The Icelandic road and coastal administration, Vegagerðin, has reached an agreement with the airline Mýflug to operate flights to Höfn in Hornafjörður for the next three years. The total cost of this service amounts to 1.3 billion Icelandic krónur, nearly double the initial estimate made earlier this summer.

Concerns had arisen regarding the continuation of flights between Höfn and the capital due to Vegagerðin’s rejection of all three bids received back in May. These bids, submitted by Icelandair, Mýflug, and Norlandair, were significantly higher than anticipated, with the lowest proposal being more than double Vegagerðin’s budget.

Originally, a three-year contract was envisioned at a cost of 642 million krónur, but the lowest bid submitted was 1.37 billion krónur. Despite the initial discrepancies, Mýflug and Vegagerðin settled on a contract worth 1.26 billion krónur over three years, leading to an increased budgetary allocation from May.

Mýflug’s chairman expressed satisfaction with the outcome after negotiations that had encountered significant gaps between expectations and reality. He noted their previous experience of subsidizing the flights with other operations and emphasized that they only provided a bid based on the actual cost of serving the route this time.

The new agreement ensures flights between Reykjavik and Höfn will operate eight times a week using a 19-seat plane, adhering to the previously outlined schedule. Additionally, Vegagerðin has invited bids for flights to Vestmannaeyjar and Húsavík, although no agreements have yet been finalized for those routes. Mýflug remains the sole airline to submit proposals for these destinations.