Icelandair to buy 49% stake in Play's Maltese AOC holder

Icelandair Group has agreed to pay $686,000 for a 49% stake in Play Europe, the Maltese arm of the now-defunct low-cost carrier Play. The deal follows a preliminary understanding the two parties reached earlier this year.

Play set up Play Europe before the airline itself stopped flying in September last year. Ahead of that collapse, Play had moved several Airbus A320neo-family aircraft onto the Maltese registry through the entity.

Icelandair Group says the stake purchase will give it access to a Maltese air operator's certificate, adding operational flexibility. The company describes the move as a way to simplify and streamline its Icelandic operations.

Icelandair Group chief executive Bogi Nils Bogason said the acquisition is meant to support continued development of the airline's hub at Keflavik and to strengthen its competitive position.

The shareholding is being bought from Isafold Capital Partners fund FPE, which held the stake in Fly Play Europe Holdco, the parent company of the Maltese AOC holder. Icelandair Group says it will keep the option to increase its ownership share later.

Completion of the deal still depends on Icelandair Group reaching an agreement with Maltese aviation authorities over continued use of the certificate. No timeline was given for finalising that agreement.