Budget Icelandic airline PLAY is set to give up its Icelandic operating licence and move its operations to Malta, should a takeover by two of its shareholders be completed.
The low-cost carrier, which operates flights between Europe and the USA, is poised to transfer its fleet of 10 Airbus A320neo aircraft to new Maltese subsidiary Fly Play Europe Limited.
PLAY – which operates in Iceland under the company name Fly Play hf – said it would cease all flights to North America from October, instead focusing on “flights to sunny destinations and aircraft leasing”.
It is unclear whether the developments will see the company start operating flights to Malta.
The company said it is aiming to “strengthen the company’s focus on profitable operations… while discontinuing the less successful parts of the business – namely, US flights and connecting services”.
The takeover bid is spearheaded by CEO Einar Örn Ólafsson and board vice chairman Elías Skúli Skúlason, who lead a group funded with a minimum investment of US$20 million.
Ólafsson is listed as the sole director of the Maltese subsidiary, which was registered in November. The sole shareholder of the company is Fly Play hf.
Fly Play Europe was awarded its Air Operator Certificate (AOC) – authorising it to operate commercial flights – by Malta’s Civil Aviation Directorate in March, when it registered the first plane under the company.
Earlier this month, the company said four of the 10 aircraft owned by the Maltese subsidiary would operate flights to and from Iceland “mainly to sunny destinations”, while the remaining six aircraft would be leased out.
“In short, passengers flying from Iceland will not notice any changes in service”, the company said.
“The airline’s branding will remain the same. The aircraft will still be red, the crews will remain Icelandic, and they will continue working under Icelandic labour agreements.”
The move will also see the parent company delist from the Icelandic stock exchange, with “increased emphasis on the company’s offices in Malta and Lithuania”.
PLAY saw net losses of $26.8 million in the first quarter of this year while its liquid assets rose to $21.1 million, according to its most recent quarterly financial results.
The company noted it had secured a long-term agreement to lease four planes to Ukrainian-owned subsidiary airline SkyUp Malta through to 2027.
Questions were sent to the company.