Icelandair has signed a Letter of Intent (LoI) to acquire 49% of Fly Play Europe, which is the Maltese-registered subsidiary of now bankrupt Icelandic low-cost carrier PLAY Airlines.
Before it went bust on September 2025, PLAY secured a Maltese Air Operator Certificate (AOC) under which it placed some aircraft. At least four A320 family aircraft were subsequently leased under an ACMI regime to SkyUp Malta Airlines, the Maltese subsidiary of the Ukrainian airline of the same name.
In the summer of 2025, there was even talk that PLAY would transfer its entire fleet to its Maltese entity, as part of its last-ditch restructuring efforts.
While the Icelandic parent company Fly Play hf. ended up declaring bankruptcy and was then wound down, its Maltese subsidiary remained an active entity, retaining its AOC.
It is precisely this AOC which now appears to be the main object of interest for Icelandair. The Icelandic flag carrier has stated that a Maltese registration opens up opportunities to further develop its business because it provides access to a number of air service agreements and may be bring also a number of tax advantages
The ultimate purchase of the assets of its former direct competitor is still subject to completion of due diligence and reaching an agreement with the creditors of the bankrupt parent company.
In an official statement issued on April 1, 2026, Bogi Nils Bogason, President and CEO of Icelandair, said: “Most airlines in our markets, especially in Europe, operate more than one air operator certificate, giving them greater flexibility in their operations. If the transaction goes through, it would similarly increase Icelandair’s flexibility and competitiveness.”
He added: “Having access to an air operator certificate in Malta in addition to the Icelandic one can open up new and exciting business opportunities and at the same time simplify our operations in Iceland and increase efficiency.”