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Copy/paste of the Avweb text:
A 40-year veteran Icelandair captain may get a chat with police instead of a water arch for his final flight with the airline. The airline turned the unidentified pilot into Iceland police after he made a 300-foot pass in a Boeing 757 over his home town of Vestmannaeyjar on an island off southern Iceland on Saturday. The flight originated in Frankfurt and was headed for Keflavik when the captain headed for the weeds with an unknown number of passengers onboard. The airline’s chief pilot, Linda Gunnarsdóttir, said she assumes the pilot checked with the passengers before lowering the nose but she couldn’t say for sure. He did not, however, check with her and in addition to reporting the incident to the police the airline is doing its own investigation.
I think he was confused and about to land at his home airport, and realized at the last moment that he was in the wrong place. Old age can do that to you! 

“What did he say, QNH 1003 or 1030?. “Whatever, it’s my last flight”….. “Blimey, I guess it actually was 1030”.
Now that will cost him his job… 
Perhaps his FO will be in trouble too, for allowing it?
What are the rules in airline flying on the FO’s required actions if the Captain wants to do a low pass?
I suppose the FO will need to voice their objections, probably quite vigorously.
However if the captain is determined to do it, I think the first officer would be correct to assist them in the sense that it would be far more dangerous to have the two pilots fighting over the controls than to do the manoeuvre in a co-ordinated fashion, under protest.
Do cockpit voice recorders still only last 30 minutes? If so, then what was discussed and how the FO voiced their objections will probably rely on the two pilots accounts of what happened. If the voice recorder goes back far enough, then of course it will be examined in detail.
If the captain does such a stunt – and let’s be honest, just imagine if every single pilot did something like that on his last flight – I at least expect him to keep all blame from the FO…
Inkognito wrote:
If the captain does such a stunt – and let’s be honest, just imagine if every single pilot did something like that on his last flight – I at least expect him to keep all blame from the FO…
All in all I think it was not WHAT was done but the WAY it was done. If this had been briefed, coordinated with the airline as a low pass at the airfield of that island, and properly done, it would quite possibly have been approved.
But like this, he is putting his airline and his FO in a very uncomfortable position. And I wonder how that would end up if they fire him on the spot. Possible problem with the pension or so? I could imagine.
This short video also has a video clip from a passenger.
1000’ above the town? Not sure….