FL GROUP

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'FL GROUP', formerly known as 'Flugleiðir', is an Icelandic investment company. The company was founded on July 20, 1973, under the name Flugleiðir. It was formed as a holding company for Loftleiðir and Flugfélag Íslands.
''FL GROUP'' was best known for its subsidiary Icelandair Group, which is being sold as of October 2006. Icelandair, Loftleidir Icelandic and other companies of Icelandair Group have been leaders in the Icelandic flight and tourism industry for about 70 years.

Contents

Main investments

Operating companies

Main listed investments

History

Before 2005 change

After 2005 change

More changes in 2006

Management

Board of directors

Key Managers

Principal shareholders (adjusted list)

References

Main investments

As of October 2006:

Operating companies

★ Icelandair Group, an Icelandic travel industry corporation (sale of Icelandair Group secured in October 2006).

★ Sterling, a low cost airline based in Copenhagen, Denmark.

★ Refresco, a European manufacturer of fruit juice and soft drinks.

Main listed investments

★ Glitnir, a Nordic banking group.

★ Straumur - Burðarás, an Icelandic investment bank.

★ Royal Unibrew, a Scandinavian beverage manufacturer.

★ Bang & Olufsen, a manufacturer of high-end electronics.

★ Finnair, a Finnish airline.

★ Aktiv Kapital, a financial company.

History

Before 2005 change

The company that is nowadays called ''FL GROUP'' was founded in 1973. In the beginning it was a holding company for "Loftleiðir" and ''Flugfélag Íslands'' under the name Flugleidir, a hybrid of the two old names. In 1978 Flugleidir took over all assets of both companies. Until then "Loftleidir" had used "Loftleidir Icelandic", "Icelandic Airlines" or just "Icelandic" for international marketing and ''Flugfélag Íslands'' used "Icelandair". That same year the name "Icelandair" was to be used solely for international marketing. ''Flugleiðir'' was still the official name of the company until 2005.

After 2005 change

In 2005, the company known as ''Flugleiðir'' was changed to an investment company called ''FL GROUP''. The airline had been spun off into a subsidiary named Icelandair in 2002. On October 23, 2005 ''FL GROUP'' announced its acquisition of the Danish low-cost airline Sterling Airways. In addition, ''FL GROUP'' holds a 16.18% stake in British "no-frills" carrier easyJet. On January 6, 2006, Hannes Smárason, CEO, stated that a merger of easyJet and Sterling was a possibility.

More changes in 2006

In early 2006 ''Ferðaskrifstofa Íslands'' was sold to Sumarferðir and ''Icelandair Car Rental'' (Hertz) was sold to Magnús Kristinsson, the owner of Toyota in Iceland.
In February 2006 FL GROUP announced plans to list its subsidiary Icelandair Group in Iceland Stock Exchange.
FL sold its 16,9% stake in British no-frills airline
easyJet in April 2006 for €325m, returning a profit of €140m on its investment. FL had first invested in easyJet in October 2004, taking an 8,4% share, increasing this over the course of 2005.
In October 2006 FL GROUP secured the sale of Icelandair Group.

Management

Board of directors

★ Skarphéðinn Berg Steinarsson, Chairman

★ Þorsteinn M. Jónsson, vice Chairman

★ Magnús Ármann

★ Jón Ásgeir Jóhannesson

★ Smári Sigurðsson

★ Kristinn Björnsson

★ Paul Davidson
Alternates:

★ Peter Mollerup

★ Magnús Kristinsson

Key Managers

★ Hannes Smárason, CEO

★ Sveinbjörn Indriðason, CFO

Principal shareholders (adjusted list)

''FL GROUP's largest shareholders as of October 11, 2006.
The list is adjusted to reflect beneficial ownership.

★ Eignarhaldsfélagið Oddaflug (19,8%)

★ Baugur Group (18,2%)

★ Magnús Kristinsson and holding companies (14,7%)

★ Kristinn Björnsson and holding companies (8,4%)

★ Icon (5,6%)

★ Materia Invest (5,1%)

References

FL Group's Web Site
Iceland Review