Icelandair

Icelandair eyes 49% stake in Malta-based Fly Play Europe to boost flexibility

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Icelandair has signed a Letter of Intent (LOI) to explore the acquisition of a 49% stake in Fly Play Europe, a Malta-based carrier holding a local Air Operator Certificate (AOC).

The move would give Icelandair access to Malta’s broader air service agreements and tax framework, opening new opportunities—particularly in charter operations—while enhancing the airline’s operational flexibility.

A potential deal would also allow Icelandair to split its fleet operations geographically, with aircraft dedicated to its core network remaining under its Icelandic AOC, while others could be operated via the Maltese entity. The structure is expected to simplify operations and improve efficiency, aligning Icelandair with other European carriers that operate multiple AOCs.

Fly Play Europe was originally established by the now-defunct Icelandic airline Play and is currently owned by a group of Icelandic investors, including pension funds.

The agreement remains non-binding, with any transaction subject to due diligence, regulatory approvals, and arrangements linked to the bankruptcy estate of Fly Play hf.

If completed, the deal would mark a strategic step in Icelandair’s efforts to increase competitiveness and diversify its operating platform in the European aviation market.

This post was published on 1 April 2026 21:37

André Orban

M. Sc. Engineering

Published by
André Orban

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