Dogsnutz
I dodn't think that ownership and control has to be in UK hands. EC Council Regulation 2907/92 on on licensing of air carriers requires that operating licences may only be issued to undertaking owned directly or through majority ownership by Member States and/or nationals of Member States. It also requires that it shall at all times be effectively controlled by such States or such nationals. This Regulation has been extended by the EEA Agreement. Therefore if I understand the situation correctly a UK airline can be owned and controlled by nationals of any EC/EEA state which includes Iceland.