Icelandair signs LoI for possible purchase of 49% share in PLAY Europe
Icelandair signed (01-Apr-2026) a LoI regarding the possible purchase of a 49% share in PLAY Europe. PLAY Europe is registered in Malta and holds a Maltese air operator's certificate (AOC). Icelandair expects a share in the company would open up new opportunities, for example in charter services, as PLAY Europe has access to more extensive air service agreements and double taxation treaties. The move would also create opportunities to separate Icelandair's fleet operations, with aircraft intended for the long term in Icelandair's passenger route network being operated in Iceland, while other aircraft would be operated in Malta. The LoI forms the basis for further discussions. Icelandair CEO Bogi Nils Bogason said: "Most airlines in our markets, especially in Europe, operate more than one air operator certificate, giving them greater flexibility in their operations. If the transaction goes through it would similarly increase Icelandair's flexibility and competitiveness". [more - original PR]
Background ✨
PLAY's management pursued a Malta-based restructuring: PLAY Europe secured a Maltese AOC to support aircraft leasing and charter/ACMI activity, including an agreement to place three aircraft with an Eastern European airline outside Iceland and without the PLAY brand1 2. PLAY later outlined plans to relocate most operations to Malta and Lithuania, surrender its Icelandic AOC, discontinue North America flying from Oct-2025 and delist, via a proposed management-led takeover vehicle3. Icelandair Group targeted a turnaround to profitability by 2026, rationalising 2026 capacity and negotiating new CBAs4.