Icelandair had four Boeing 737-400 aircraft in its fleet. Pictured is TF-FID – the last in service until the 757 fleet arrived as a substitute. The airline's 737-MAX order will give the airline back its 737 status.

MIAMI – Icelandair (FI) and the  Icelandic Cabin Crew Association (FFI) have resumed negotiations and signed a new collective-bargaining agreement which is valid until September 30, 2025. 

On July 17, Airways covered the dramatic move by FI to fire all of its Flight Attendants after failed negotiations between the airline and the FFI. 

The rift between the two parties began In June last year when a collective-bargaining agreement was signed by FI and the FFI with a pending ratifying vote by the association. 

On July 8, 2020, the FFI voted against the agreement, which prompted FI to assess its options. A week later, the carrier announced the firing of its Flight Attendants.

Icelandair operated five Boeing 767-300ER aircraft. Pictured is TF-FIB, arriving in Keflavik on May 18, 2005 – the only 767 to carry the full Icelandair markings. This aircraft was mainly deployed on the San Fransisco route in the 2005-2006 period. PHOTO: Baldur Sveinsson.

Comments from Icelandair

Now, in a press release, the airline states that this new collective agreement is based on the same principles as the agreement which was agreed to between the parties on 25 June 2020.

Thus, the agreement “meets the set objectives of increasing productivity and flexibility for the Company and at the same time ensures competitive compensation for Cabin Crew members,” according to the airline.

According to the airline, the new agreement cuts operating costs while maintaining working conditions for Cabin Crew. 

Due to the resumption of negotiations, Pilots will no longer be working as temporary Cabin Crew members. 

The new agreement will now have to be voted on by members of the FFI by July 27, 2020.