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'''Islandsflug''' was an ] and ] company based in ]. It operated charter and scheduled passenger and cargo services, as well as wet lease services. Its main base was ], ]. In 2005 it merged into ].<ref name="FI">] 5–11 April 2005</ref> ] took over the domestic operations of Islandsflug.<ref> retrieved 24 November 2006</ref>
'''Islandsflug''' was an ] and ] company based in ]. It operated charter and scheduled passenger and cargo services, as well as wet lease services. Its main base was ], ]. In 2005 it merged into ].<ref name="FI">] 5–11 April 2005</ref> ] took over the domestic operations of Islandsflug.<ref> {{webarchive|url=https://web.archive.org/web/20070609125259/http://www.landsflug.is/ |date=2007-06-09 }} retrieved 24 November 2006</ref>
The airline was established in 1991 by the merger of two small domestic scheduled airlines, Eagle Air Domestic and Flugtak. In 1994, the airline began overnight parcel services to East Midlands Airport using a Fairchild Metro aircraft. The airline took delivery of its first ATR-42 in 1996. In 1997, the airline became a jet operator with the delivery of its first Boeing 737-200QC which was used for passenger and freight services.
In June 1999, it introduced the name of Icebird Airlines for its international operations. Islandsflug's first widebody aircraft, an Airbus A310, was delivered in 2001, making the airline the first Airbus operator in Iceland. In October 2004, it merged with Air Atlanta Icelandic under a holding company called the Avion Group.