Travel association warns Icelandair mechanics strike could cost billions

The Icelandic Travel Industry Association says an indefinite strike by Icelandair mechanics could cause losses running into billions, mbl.is reports.

The association’s board expressed deep concern about the planned strike and urged the parties to reach an agreement before it begins. Icelandair mechanics have announced that the strike will start at midnight on September 23 if no agreement is reached.

Travel companies across Iceland have already received numerous cancellations and inquiries about cancelling, refunding or postponing trips, the association said. If the strike goes ahead, it warned of serious disruption throughout the tourism industry’s value chain.

“Icelandic tourism and the industry’s contribution to value creation in society are based on safe and predictable air travel,” the association said. The consequences of strike action would affect thousands of tourists and hundreds of companies across the country that are not involved in the dispute, it added.

The association also warned that damage to Iceland’s reputation as a reliable destination could last longer than the immediate financial losses.

According to the statement, an indefinite strike that closes the main lifeline of the country’s largest export industry would cause serious economic damage to society as a whole. The losses would affect not only companies and workers in tourism, but also state revenues and the ability to fund public services and other shared projects.

If no agreement is reached, the public interest requires the government to intervene to prevent major damage to tourism, businesses and Icelandic society as a whole, the association said.