Iceland Air. Photo: Shutterstock Icelandic airline Icelandair has signed a Letter of Intent (LOI) to enter into talks to acquire 49% of Fly Play Europe, which is registered in Malta and holds a local Air Operator's Certificate (AOC).
The Maltese company was founded by the Icelandic airline Play during its period of operation, and is currently owned by Icelandic investors, including pension funds.
Icelandair estimates that acquiring a share in the company may open new business opportunities for it, particularly in charter flights, thanks to broader aviation agreements and favorable tax treaties enjoyed by the Maltese company.
In addition, the move may allow the company to split its fleet operations: aircraft used on Icelandair's scheduled network will continue to operate from Iceland, while other aircraft will operate from Malta, a move expected to streamline operations and increase business flexibility.
The company notes that this is only the initial stage of contact and that any future transaction depends on due diligence, signing a final agreement, arrangements with the creditors of the collapsed Play company, and obtaining the required regulatory approvals.
Icelandair CEO and President Bogi Nils Bogason noted that "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. 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.”