On June 3, 1987, Icelanders celebrated 50 years of commercial flights; half a century had passed since Flugfélag Akureyrar, one of the predecessors of Icelandair, came into being. The first step in the renewal of the fleet was announced. At the anniversary board meeting, the Icelandair Managing Director signed an agreement with Boeing for the purchase of two 737-400 jets and options on two others.
This was the start of the recreation of the airline. The Icelandair board changed significantly, Sigurdur Helgason (the older) became Chairman in 1984, and Sigurdur Helgason (the younger) was appointed Managing Director. They had a lot of work to do but after years of economising, they began replacing almost everything the company owned the aircraft, hangers, hotels and rental cars.
This picture is from the signing of the agreement with Boeing at the anniversary meeting. Borge Boeskov, the Boeing representative, stands before a gathering of the Icelandair managers.