Play Europe Secures AOC for Maltese Subsidiary
Icelandic carrier Play has taken a significant step in its business transformation by securing an air operator certificate for its new Maltese subsidiary, now known as Play Europe. This move comes as part of a broader restructuring process aimed at repositioning the airline’s business model and expanding its operational capabilities across Europe. With a focus on aircraft leasing and providing operational support services to other European carriers, Play Europe is set to play a pivotal role in the region’s aviation market while further diversifying the company’s revenue streams.
Under the new Maltese AOC, Play Europe plans to launch a range of leasing projects that will allow other airlines to access modern aircraft and efficient operational support. The company has already secured its first agreement with an unnamed operator in Eastern Europe, which involves the lease of three aircraft. These aircraft will be registered under the Maltese certificate and will operate exclusively outside of Iceland, ensuring that the Play brand remains distinct from these leasing operations. Play CEO Einar Örn Ólafsson emphasized the importance of this development, stating that the leasing projects will generate profitability in line with earlier projections and contribute to making the airline’s operations more predictable and financially stable.
The decision to establish a Maltese subsidiary was announced last October and marks a major shift in Play’s business strategy. This strategic pivot comes in response to “disappointing” yields from the carrier’s connecting flights between Europe and North America. By focusing on aircraft leasing and operational support through Play Europe, the airline aims to reduce its reliance on connecting passenger traffic through Reykjavik Keflavik Airport and instead expand its point-to-point services to leisure destinations in Southern Europe. This new focus is expected to open up additional network opportunities and cater to the growing demand for direct flights within Europe.
The first aircraft to be registered under the new Maltese AOC is a 2018-manufactured Airbus A321neo, a model that represents the latest advancements in fuel efficiency and operational performance. Play Europe will employ pilots and senior cabin crew directly, basing them in the countries where operations take place, which should further streamline its operational model and ensure high levels of service and safety. This approach not only supports the company’s restructuring efforts but also enhances its ability to offer reliable leasing and support services to partner airlines.
In addition to these strategic moves, Play reported positive operational metrics earlier in the year. In February, the airline announced a 17% rise in revenue per available seat kilometer for the fourth quarter of 2024, driven by higher average ticket prices and an improved load factor, which reached 82.5%, up by 4.2 points. Although the airline recorded a net loss of $39.8 million in the fourth quarter and $66 million for the full year—primarily due to a write-down of tax assets amounting to $24.1 million—its efforts to restructure and optimize operations are already showing signs of progress. In 2024, Play carried 1.6 million passengers, including 336,000 in the fourth quarter, and maintained a fleet of 10 aircraft serving 42 destinations. These developments position Play Europe as a key component of the carrier’s future growth strategy in an increasingly competitive European aviation market.
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