Icelandic low-cost carrier PLAY is poised for a significant overhaul as two of its largest shareholders propose a takeover to acquire all outstanding shares and delist the airline from the stock exchange.
The takeover is led by CEO Einar Örn Ólafsson and Vice Chairman Elías Skúli Skúlason. Under the new ownership, PLAY will see a restructure with the shuttering of the Icelandic AOC and hub operations.
This strategic move includes a share capital increase and aims to streamline operations. At the same time, it will uphold PLAY’s commitment to affordable travel for Icelanders and tourists.
Photo Credit: PLAY Airlines
PLAY Operations Restructure
The takeover group plans to refocus PLAY’s operations to ensure long-term profitability and competitiveness in the Icelandic aviation market.
By prioritizing key operational areas, the airline intends to enhance its offerings while phasing out less successful ventures. Here’s a breakdown of the proposed changes:
Focus on Sunny Destinations: PLAY will strengthen its flight offerings from Iceland to popular sunny destinations. This caters to travellers seeking warm getaways.
Cessation of North America Flights: All flights to North America will end by October 2025. The decision comes as these routes have not delivered the expected financial results.
Reduced Northern Europe City Routes: The airline will scale back on city destinations in Northern Europe to optimize its network.
Shift to Maltese AOC: Operations will transition from an Icelandic Air Operator Certificate (AOC) to a Maltese AOC. The carrier will then return the original Icelandic AOC.
Fleet Optimization: Four aircraft will continue to serve routes to and from Iceland, primarily to sunny destinations. The remaining six aircraft will be leased to other airlines through profitable Aircraft, Crew, Maintenance, and Insurance (ACMI) projects.
Delisting from Stock Exchange: PLAY will be removed from the stock exchange, marking a shift to private ownership.
Expanded Operations in Malta and Lithuania: The company will place greater emphasis on its offices in Malta and Lithuania to support its streamlined operations.
Photo Credit: PLAY
Continuation of Service
Despite these changes, passengers can expect continuity in PLAY’s service. The airline’s iconic red aircraft and Icelandic crews will remain unchanged, continuing to operate under Icelandic labour agreements. The PLAY brand and its commitment to affordable fares will also stay intact, ensuring a seamless experience for travellers.
The takeover group is offering ISK 1 per share. Sellers will have the option to receive payment in shares of the new company or in cash.
The acquiring entity has secured commitments for over one-third of the minimum USD 20 million investment needed to fund the transition.
CEO Einar Örn Ólafsson emphasized the practical nature of the plan. “This restructuring focuses on the profitable core of PLAY’s business—flights to sunny destinations—while moving away from underperforming areas like U.S. routes.”
“We’re excited to continue fostering competition in the aviation market with our red aircraft and Icelandic crews, ensuring Icelanders have access to affordable flights to the sun.”
Photo Credit: PLAY
Conclusion
By concentrating on high-demand routes and lucrative leasing opportunities, PLAY aims to strengthen its financial position while maintaining its role as a competitive player in Iceland’s aviation market.
The proposed changes signal a bold step toward sustainability, with a clear focus on delivering value to passengers and stakeholders alike.
This transformation underscores PLAY’s adaptability in a dynamic industry, positioning the airline for future success while staying true to its mission of affordable, reliable travel.
