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Panic at Iceland Express


After what appears to be a well-coordinated PR attack (a sudden shockwave of negative publicity), Iceland Express appears to be losing its balance. The company replaced its Managing Director 10 days ago and has now done so again. Shots are fired between the parties through the public media which is damaging the company’s image regardless of what the most recent MD claims.

If indeed a victim of a PR attack (which bears certain characteristics of US gameplay; rip the opponent apart from within), the attacker is succeeding so far. What Iceland Express must do is to stabilize and focus on competitive strengths. There are better ways to handle the situation that to go public with internal disagreements: simply blast the advantages and drown the bad publicity. In today’s economy, price weighs heavily and that’s where Iceland Express stands strong.

Update October 7: And suddenly, everything about Iceland Express got quiet. Interestingly enough, this episode coincides with the air stewardess strike threat looming over Icelandair since September 16. Also of interest, Icelandair Group completes debt financing with Deutsche Bank, which financial ties to Iceland (this link may require page reload; it behaves oddly) are considerable, October 4.

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