Iceland's first wide-bodied jet, a DC-10 30, landed at Keflavík Airport on January 5th, 1979. Icelandair negotiated a very favorable lease-purchase plan to acquire this 380-seat plane, but it turned into a nightmare transaction. The pilots' continuing dispute over new contract terms was at its height, and no agreement was reached about who would fly the new jet. Initially, American pilots were employed to fly it.
Matters took a turn for the worse when a jet of the same type crashed on takeoff from Chicago’s O’Hare Airport, in June 1979. The engine had broken loose and all DC-10 aircraft were grounded until investigations were completed. The grounding was for a longer period in the USA, where Icelandair's plane was registered , so It stood unused for eight months over the busiest period of the year. The jet had been scheduled to transport passengers over the North Atlantic that summer and Icelandair had to lease jets in order to meet its obligations. This placed a heavy financial burden on the company, so Icelandair sold this wide-bodied jet in 1980. It took several years before they acquired another plane of a comparable size.