Iceland is a member of the JAA.
It is also a member of the UN, NATO, The Council of Europe (CE), The European Economic Area (EEA), and The European Free Trade Area (EFTA) amongst others.
It is not a member of the European Union (EU).
As there is no JAR-OPS sub-part Q published ( nor is there likely to be for some time ) it is up to each member state to enforce their own FTLs.
Icelandic FTLs to be used by an airline based in the UK ? !!
And no recourse to EU labour laws ? !!
No wonder they are itching to get their feet in the door.
What do Balpa say ?