The Maltese business of former low-cost carrier PLAY has gained a new shareholder: Icelandair, its former direct competitor. On October 19, Icelandair Group announced that all conditions for completing the transaction had been met, giving it a 49% stake in Fly Play Europe Holdco. Its subsidiary, Fly Play Europe Limited, holds a Maltese Air Operator Certificate (AOC).

Access to an additional European AOC is Icelandair’s main reason for the investment. According to the airline’s earlier explanation, the arrangement should provide greater operational flexibility, simplify the organisation of its operations in Iceland and support the development of new international activities. CEO Bogi Nils Bogason also emphasised that the investment was intended to support the continued development of the Keflavík hub and the competitiveness of Iceland’s aviation industry.

The Maltese company was established as part of a change in PLAY’s business model announced in October 2024. At the time, the airline was seeking additional revenue streams by operating flights for other carriers alongside its existing network through Iceland. Play Europe received its AOC in March 2025, with an Airbus A321neo registered 9H-PEA, manufactured in 2018, becoming the first aircraft registered under the certificate.

By the time the certificate was issued, PLAY had already secured an agreement to lease three aircraft to an Eastern European airline. The plan envisaged these aircraft operating outside Iceland and outside the PLAY brand, while most of the remaining fleet would continue serving routes from Keflavík. The Maltese subsidiary was therefore conceived from the outset as a separate part of the business focused on providing capacity to other carriers.

Following the cessation of PLAY’s operations in September 2025 and the bankruptcy of its Icelandic parent company, the Maltese structure survived under creditor control. This preserved the part of the business that has now attracted Icelandair, even though PLAY had previously competed with it for passengers travelling between Europe and North America via Iceland.

The share purchase agreement was signed on August 20, 2026, with an agreed price of US$686,000. The seller is a fund managed by Isafold Capital Partners. Alongside the purchase, the parties agreed on shareholder relations and financing arrangements, while Icelandair secured options to increase its ownership stake at a later stage. The airline expects the transaction to have an immaterial impact on its financial performance and balance sheet for 2026.

The transaction concerns an equity stake in the holding company, while Fly Play Europe Limited remains the AOC holder. Completion of the acquisition therefore does not, in itself, constitute an announcement of specific new routes or the transfer of existing Icelandair flights to the Maltese certificate. In its announcement confirming the transaction’s completion, the airline did not disclose a schedule for future operations or details of the aircraft that would be used within the structure.