Foreigners Pay More to Fly with Domestic Airline

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Foreigners Pay More to Fly with Domestic Airline

Þingvellir

Photo: Páll Stefánsson.

Domestic airline Eagle Air (Flugfélagið Ernir) offers different prices for fares in the Icelandic and English versions of its website. The airline’s CEO maintains that the pricing is fair.

For example, a couple with two children flying from Reykjavík to Vestmannaeyjar and back on July 19 pay ISK 92,000 when booking on the Icelandic version and EUR 807 on the English version, which equals ISK 125,000, ruv.is reports.

Special offers are also advertised on the Icelandic website but not on the English version.

CEO of Eagle Air Hörður Guðmundsson denied that customers are being discriminated against through the difference in prices. He stated it is fair that Icelanders are offered lower fares as their tax money is used to subsidize domestic flights.

“Some of our routes are subsidized by the state to give Icelanders an opportunity to travel inexpensively and comfortably between places. We don’t see a reason to use Icelanders’ tax money to subsidize airfares for foreign parties who pay in euros and have paid the same amount since before the collapse [in 2008]. We haven’t increased the price in euros. In some cases it has even been lowered,” Hörður stated.

However, according to ruv.is, the double pricing may be in contrast with the EEA agreement.

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