AirIceland(Icelandic:Flugfélag Íslands) is aregional airlinewith its head officeatReykjavík AirportinReykjavík,Iceland. It operatesscheduled services todomestic destinations and toGreenlandandtheFaroe Islands. Its main bases areReykjavíkAirport andAkureyri Airport.[2]It is a subsidiary ofIcelandair Group.

The airline was formedin Akureyri by Tryggvi Helgason asNorðurflug, and was incorporated asFlugfélag Norðurlands on 1 May 1975. Areorganisation and merger ofIcelandairDomesticandNorlandair (Flugfélag Norðurlands) resulted in the present name in 1997. Itiswholly owned by Icelandair Group and had 226 employees in March 2007.

A fleet of 3BombardierDash 8-Q400aircraftwill replace the airline's 5FokkerF50aircraftin2015-16. Services using the new aircraft will include a route toAberdeenonbehalfof Icelandair due to start in March 2016.