Cargolux established

Cargolux established

1970

A year after Loftleidir Icelandic acquired Air Bahama, they were able to extend the use of jets to all their originally scheduled routes thanks to a new contract with the USA allowing them to keep their low-fare structure while using the faster planes. The company took three DC-8-63s on a lease-purchase plan in 1971 and then used jets on all its scheduled routes. The redundant Canadair "monsters" were put up for sale, but when no buyer emerged, they were restored to operate in their original role as cargo carriers.

This idea led to the establishment of the Cargolux freight company, in partnership with the Swedish shipping company Salenia and Luxair. This enterprise quickly gained a strong foothold in the market, and became one of the largest cargo carriers in the world, providing jobs for many Icelanders over the years.