PLAY Shuts Iceland AOC, Shifts to Malta Hub Under New Ownership Plan

PLAY Iceland plans to shut its Icelandic air operator’s certificate (AOC) and shift operations to Malta under its PLAY Europe unit, following a proposed buyout by CEO Einar Örn Ólafsson and board vice-chair Elías Skúli Skúlason. The executives, through their new entity BBL 212 hf., have offered to purchase remaining shares at ISK1 per share (USD0.008), representing a 24.2% premium over the June 10, 2025 closing price. They currently control 20% of the airline and have secured USD7 million in funding, requiring an additional USD13 million to complete the transaction.

The buyout aims for a 90% stake to trigger full ownership and delisting from Nasdaq Iceland. If successful, PLAY will end all North American flights and scale back its Northern European network by October 2025. The airline will instead focus on leisure and visiting friends and relatives (VFR) routes to Lithuania and Poland, supported by four aircraft, while six other aircraft will serve the ACMI market.

PLAY expects ACMI services to generate 40% of revenue through 2027, enabling positive cash flow and earnings by 2026. The fleet of six A320-200Ns and four A321-200Ns, leased at favorable rates, will transfer to Malta’s registry. Iceland will retain only a virtual carrier presence. The company also signaled possible lease extensions as aircraft age into prime leasing value.

Icelandic crews will keep existing pay levels, though the Icelandic office will shrink in favor of Maltese and Lithuanian operations. Investors suggest the restructured airline may attract future private equity or IPO opportunities.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com