A strike by aircraft mechanics employed by Icelandair officially began at midnight, prompting the airline to cancel all morning flights, both domestic and international.

An indefinite strike by Icelandair aircraft mechanics is set to begin at midnight tonight unless the situation changes. As of last night, no meeting had been called by the State Mediator in the labour dispute.

Icelandair this morning rejected an offer from the Icelandic Aircraft Mechanics Association (FVFÍ) to postpone its planned strike action by seven days.

“Talks are continuing, and as long as that remains the case, we won’t give up,” says State Mediator Ástráður Haraldsson about the collective bargaining negotiations between Icelandair and the Icelandic Airline Pilots Association (FÍA).

Gylfi Magnússon, professor at the University of Iceland’s Faculty of Business Administration, says the government’s bank tax is a strange form of taxation, noting that it is unusual to tax companies’ liabilities.

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