PLAY Airlines has abruptly ceased operations and canceled all flights. I can’t say I’m surprised…
PLAY Airlines calls it quits, cancels all flights
In 2021, we saw the launch of PLAY, an ultra low cost carrier in Iceland that intended to use Keflavik (KEF) to connect points in North America with points in Europe, just as Icelandair does. Unsurprisingly, this business model hasn’t proven to be a success, and the airline has been losing money since launch.
We’ve seen the airline try to reorganize several times, most recently cutting all flights to the United States, and pursuing a new strategy. However, all of that hasn’t been enough, and the airline has run out of money.
PLAY is now ceasing operations effective immediately, and will operate no more flights. The airline says it’s deeply sorry for the disruption this causes, and thanks customers for their understanding.
For those with tickets booked, the airline is advising customers to check with other airlines, as some may offer special “rescue fares,” given the circumstances. Regarding refunds and passenger rights:
- If you purchased your ticket with a credit card, the airline is advising customers to contact their credit card company for a refund
- If you booked your ticket as part of a vacation package through a travel agency, the airline is advising customers to contact the travel agency for assistance
- Some rights may also apply under EU Air Passenger regulations, and in case of bankruptcy, claims can be made with the appointed administrator
PLAY’s fleet currently consists of 10 latest generation aircraft, including six Airbus A320neos and four Airbus A321neos.
PLAY Airlines’ failure is sad but predictable
I’m sad for the roughly 400 employees at PLAY who are losing their jobs as a result of the airline ceasing operations. At the same time, this failure is anything but surprising, since the carrier’s business model never made sense in the first place.
In 2019, Icelandic ultra low cost carrier WOW Air ceased operations, and had a nearly identical business model to PLAY. Heck, many of PLAY’s executives were former WOW Air executives. However, they believed things would be different this time around. Well, they weren’t, and somehow that’s a surprise.
But we’ve seen this over and over again. As another example, in 2021, Norwegian discontinued long haul flights, as the airline tried to operate as an ultra low cost carrier across the Atlantic. Then Norse Atlantic replicated exactly that business model. Again, it hasn’t proven to be a success, and the airline is also now increasingly transitioning to leasing out aircraft.
Bottom line
PLAY Airlines is ceasing operations effective immediately, canceling all flights. The airline has been losing money since launch, and has been trying to restructure in recent months. However, there’s only so much you can restructure when your business model is bad in the first place, and you have a lot of debt.
What do you make of PLAY ceasing operations?
