What Happened
Icelandic Flag Carrier Expands European Flexibility
Icelandair has signed a Letter of Intent to acquire 49% of Fly Play Europe, the Maltese-registered subsidiary of the now bankrupt Icelandic low-cost carrier PLAY Airlines. The acquisition is primarily driven by the desire to obtain the Maltese Air Operator Certificate (AOC) held by Fly Play Europe, which could provide Icelandair with greater flexibility in its European operations and access to new air service agreements. The deal is subject to completion of due diligence and an agreement with the creditors of the bankrupt parent company. According to AeroTime, Icelandair’s CEO Bogi Nils Bogason believes the acquisition will increase the airline’s competitiveness and simplify its operations.