"Question? How long could iclandic CAA continue re-validating non-jar licences?12 months is practical in the rest of europe exept the bankrupt icerock and the green island were its chilly wx all the time."
I'm not sure you should waste your time worrying about validations. You should worry that the new owners at AAI might someday realize that they gain no competitive advantage by remaining an Icelandic company. They could make far more money by registering all the aircraft in some other "Category 1" country, dumping the "local" union crews in favor of the much more productive contractors and continuing the operation as an "offshore" entity. These "flag of convenience" airlines are quite common now and I really don't think SV cares about what the tail # is. You could still call it Air Atlanta and it would have the same management, but you could dump the union and register the planes in a country with much less regulatory oversight. Much more money to be made by leaving Iceland!