Icelandair Group says it has entered into an agreement and “completed the acquisition” of a 49% stake in Fly Play Europe Holdco ehf. (FPE), a company whose Maltese subsidiary, Fly Play Europe Limited, holds a Maltese Air Operator’s Certificate (AOC). Icelandair put the purchase price at $686,000 and said the deal includes a shareholders’ agreement, financing arrangements, and options to increase its stake later.
The acquisition was announced in an Icelandair press release dated Aug. 20, 2026 (16:30 GMT) and follows a non-binding letter of intent (LOI) the group disclosed on April 1, 2026.
What Icelandair is buying (and from whom)
Per Icelandair, it is buying into FPE from FPE HS, “a fund managed by Ísafold Capital Partners”, with the key asset being access to an additional European AOC via FPE’s Maltese operating company.
While Icelandair’s Aug. 20 release uses the phrase “completed the acquisition”, it also stresses that completion is subject to reaching an agreement with the Maltese aviation authorities regarding the continued use of the company’s AOC, among other conditions, so there is still a regulatory gating item before the operational benefits can be fully relied upon.
In the April LOI disclosure, Icelandair laid out a fairly explicit “why”:
- New business opportunities (including charter services) because the Maltese company has access to more extensive air service agreements and double taxation treaties, according to Icelandair.
- The ability to separate fleet operations, with aircraft meant for Icelandair’s long-term passenger network operated in Iceland, while “other aircraft” could be operated in Malta, is an approach Icelandair says would simplify operations and improve efficiency.
- CEO Bogi Nils Bogason also framed multi-AOC structures as standard practice in Europe, saying many airlines operate more than one AOC for greater flexibility and competitiveness.
Icelandair reiterated the same strategic themes in the Aug. 20 announcement, calling the Maltese AOC access a way to enhance operational flexibility, simplify/streamline operations in Iceland, support international development, and create new business opportunities while describing the 2026 financial impact as immaterial.
What Play Europe was built to do and What happens next
Fly Play Europe was originally established by the Icelandic low-cost airline Play, Icelandair said in its LOI disclosure.
Play later ceased operations and filed for bankruptcy proceedings on Sept. 29, 2025, according to Iceland’s government information site and Nasdaq Iceland notices referencing the bankruptcy petition.
When Play Europe received its Maltese AOC in March 2025, Play described it as part of a restructuring to carry out projects in Europe for other airlines. Play said it had already reached an agreement involving the lease of three aircraft under the Maltese AOC, with those aircraft operating exclusively outside Iceland and not under the Play brand; it also said pilots and senior cabin crew would be employed by Play Europe.
That background helps explain why Icelandair is interested: it’s not just about “a certificate” but about buying into an already-structured platform meant for leasing/charter-style operations under an EU AOC framework.
The biggest near-term “watch item” is the condition Icelandair highlighted: an agreement with the Maltese aviation authorities regarding continued use of the AOC.
If that condition is satisfied, Icelandair has signalled it wants to use the extra AOC as a long-term tool to (a) improve flexibility and efficiency, (b) diversify revenue (including leasing/charter opportunities), and (c) support the competitiveness of its Keflavik hub strategy.
Do you think Icelandair will successfully boost flexibility with this plan? Let us know in the comments
