Icelandair Pursues 49% Stake in PLAY’s Maltese Unit

Overview

• Icelandair disclosed Wednesday it is in talks to buy 49% of Fly Play Europe, which holds a Maltese air operator certificate, a government license to run an airline.
• AeroTime and AirInsight report a signed letter of intent, while the company describes the process as early-stage and still subject to due diligence and deals with PLAY’s creditors.
• Icelandair says a Malta certificate would open more charter work by unlocking broader air service agreements and access to double taxation treaties.
• The airline is evaluating a split of activities, with scheduled routes kept on the Iceland certificate and charter or ACMI flying run from Malta to simplify operations.
• Key hurdles remain from PLAY’s collapse, as Iceland’s regulator has frozen deregistration of three dry-leased A320-200neos over unpaid debts and the Maltese unit currently has no aircraft.