Icelandic budget carrier Play is planning to obtain a Maltese air operator’s certificate in order to diversify its activities, following pressure on its transatlantic operations.
It is aiming to support its southern European services, and will use the Maltese AOC to station aircraft in Tenerife – serving both Icelandic and other destinations.
Chief executive Einar Orn Olafsson had hinted at such a strategy while speaking to FlightGlobal earlier this year, suggesting that the carrier could use Spanish crews to operate opposite-direction sectors from southern Europe to Iceland.
The airline, which uses a fleet of Airbus single-aisle jets, says it expects to complete the Maltese AOC process by spring next year.
It indicates that it will place three or four aircraft on the Maltese AOC and retain six or seven on its Icelandic AOC.
While the carrier says its financial position is “secure” and it is not intending to pursue additional funding, it says its full-year earnings are likely to fall below last year’s level.
It attributes this to stronger competition, greater capacity and lower yields on the transatlantic routes, and states that it is “de-emphasising” its transatlantic operation in response – cutting back “significantly” on the number of North American destinations next year.
Play says its point-to-point services, in contrast, have been “popular and profitable from the beginning”, and it will instead concentrate on this area.
“We’ve observed shifts in the market, and it is our view that the via-route network is no longer as profitable as it once was,” says Olafsson.
He says the diversification plan includes temporarily leasing one of its 10 aircraft to Miami, to operate on behalf of US carrier GlobalX from November to March.
Olafsson adds that Play is “exploring a year-round project”, without elaborating.
