Icelandair Pursues 49% Stake in PLAY’s Malta AOC Unit to Enhance Operational Flexibility

HAFNARFJÖRÐUR — Icelandair (FI) has signed a letter of intent (LoI) to enter discussions regarding the acquisition of a 49% stake in Fly Play Europe (FD), a Malta-registered company holding a Maltese Air Operator Certificate (AOC) and originally established by the now-defunct low-cost carrier PLAY.

In its announcement, FI described the potential acquisition as a means to add a second operating certificate, a practice common among European airlines, to enhance flexibility and competitiveness. CEO Bogi Nils Bogason stated that holding a Maltese AOC alongside FI’s Icelandic certificate could “open up new and exciting business opportunities,” simplify operations in Iceland, and improve efficiency.

The FI LoI makes sense. Malta-based AOC can surely provide an airline with greater operational flexibility in Europe by expanding access to specific air service agreements, staffing and operational structures, and aircraft deployment options under a different regulatory certificate. Icelandair’s statement highlighted flexibility rather than immediate changes to its network.

Background: PLAY Collapsed, but the Maltese Unit Remained Active

PLAY ceased operations and entered bankruptcy in late September 2025, but its Maltese subsidiary remained in place and retained the AOC. This continuity may provide strategic value even after the Icelandic parent company was dissolved. (island.is) According to AeroTime, the Maltese entity was involved in PLAY’s restructuring and continued as an active corporate vehicle.

Icelandair emphasized that the LoI is preliminary. Any transaction will depend on due diligence, agreement on final terms, arrangements with relevant counterparties related to PLAY’s bankruptcy creditors, and required approvals.

The news comes as major European acquisitions moves happen today, with the Air France-KLM Group submitting a non-biding offer for a minority stake in TAP Air Portugal (TP).