newstodate.aero

May 14, 2020 (newstodate): Icelandair is struggling hard to meet the Icelandic state's requirements for providing the airline with crucially needed state-guaranteed lines of credit.
   The carrier is in dire financial straits due to the serious financial problems with, first, the grounding of the Boeing 737 MAX fleet since March 2019 and, next, the outbreak of coronavirus bringing almost all flights to a full-stop since March 2020.
   The government has required that Icelandair completes a financial restructuring and streamlining including a drastic cut in staff and remands for lower wages and more harsh working conditions for the cabin and cockpit staff - which is still under yet unsuccessful negotiations with the unions.
   In light of the supposed threat to the carrier's continued existence, both the Icelandic carrier Bluebird Nordic , now owned by the Lithuanian ASG, and the projected carrier under formation PLAY! have aired their readiness to step in to secure Iceland's continued air connectivity, should Icelandair fail in its efforts to emerge from the current crisis.
   Bluebird Nordic is however today certified only for cargo flights, while PLAY! is still without an AOC or any aircraft.