Icelandair (FI, Reykjavik Keflavik) has initiated discussions with the current owners of PLAY Europe (FPE, Malta International), a still active Maltese air operator's certificate left idle following the collapse of its erstwhile parent, PLAY (Iceland), concerning a potential acquisition of a 49% share.

"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," president and chief executive officer Bogi Nils Bogason said.

The airline underlined that the discussions are preliminary and the terms of the potential acquisition are yet to be finalised.

However, explaining the rationale, Icelandair said that it was evaluating using the Maltese AOC to split its core fleet dedicated to scheduled operations out of Reykjavik Keflavik, and other aircraft currently operating charters or ACMI flights. "Acquiring a share in the company would open up new opportunities for Icelandair, for example, in charter services, as the Maltese company has access to more extensive air service agreements and double taxation treaties. At the same time, it would create opportunities to separate the company’s fleet operations," the airline said.

Bogason pointed out that having more than one AOC was "common" in Europe, and would increase Icelandair's flexibility and competitiveness.

Icelandair currently only has the Icelandic AOC.

PLAY used to compete with Icelandair as a low-cost carrier with a hub at Keflavik. While originally set up with the Icelandic AOC, it launched PLAY Europe in 2025 to lower the cost of its ACMI-out business. It later proposed closing the Icelandic AOC altogether to focus on ACMI and charter business with the Maltese certificate. This change never went through before PLAY ceased operations at the end of September 2025, buckling under the weight of sustained losses.

While PLAY's Icelandic AOC is no longer active, the Maltese one is. Three dry leased A320-200Ns remain registered in Iceland to the company, after the local regulator blocked their deregistration pending the settlement of all debts. The Maltese unit no longer has any aircraft.

Fly Play Europe, trading as PLAY Europe, is wholly owned by FPEHM Ltd., a Maltese company incorporated in January 2026. This firm is, in turn, wholly owned by Icelandic company Fly Play Europe Holdco. The Icelandic business register shows the beneficial owner of the firm is the CEO of PLAY, Einar Orn Olafsson.