Icelandic low cost carrier PLAY has outlined plans to help establish a flagship airline for Kosovo. According to an investor presentation by PLAY’s new takeover group, the airline is in advanced talks with seasoned aviation operators to launch a virtual carrier based in Kosovo, in collaboration with Pristina’s three largest travel agencies. The proposed airline would operate under a virtual model, meaning it would rely on aircraft and crew provided by PLAY or affiliated entities, while local partners would manage sales, distribution and branding. The three Kosovo travel agencies involved reportedly command a combined 54% share of the market at Pristina Airport, positioning the venture for immediate reach and influence in the outbound leisure and diaspora-driven traffic.
The Kosovo-focused project is part of a broader restructuring strategy led by the carrier’s CEO Einar Ernir Olafsson and Deputy Chairman Elías Skuli Skulason, who are spearheading a takeover of PLAY. Their vision includes a pivot toward ACMI (Aircraft, Crew, Maintenance, and Insurance) leasing and aircraft deployment under PLAY’s recently obtained Maltese air operator’s certificate. PLAY would divest its Icelandic license and focus its fleet across leasing operations and selective route services, including those in and out of Iceland. This week, PLAY announced it will cease all flights to the United States from October 2025.
As the carrier seeks new growth avenues and capitalises on opportunities outside its home base, Kosovo has emerged as a new component of PLAY’s strategy. Last year, capacity provider GP Aviation became Pristina’s busiest airline, handling just over 900.000 passengers, overtaking Wizz Air. A key factor in its success was securing access to high-demand routes to Switzerland. Chair Airlines and easyJet positioned themselves as the second a third busiest carriers, with 540.000 and 505.000 travellers respectively. Wizz Air, which was Pristina’s busiest in 2023 came only fourth, with 420.000 passengers, shedding over 100.000 customers year-on-year. Austrian Airlines overtook its Turkish counterpart to become the busiest legacy carrier operating out of Pristina, handling 150.000 passengers. Last year, Pristina Airport was the fastest growing in the former Yugoslavia, adding over 600.000 additional travellers on 2023.
Well that was unexpected
ReplyDeleteWelcome news
DeleteWhy not set up a proper airline?
ReplyDeleteBecause it's much more expensive.
DeleteAnd cirtual carriers work in PRN.
Delete*virtual
DeleteBecause this way PLAY will get a lot of money for leasing planes and crew. It could be a cash cow, if it works.
DeleteAre PLAY's crews Icelandic or they have hired them from the rest of Europe?
DeleteIf it is the former would they be willing to move to Kosovo? It would certainly be a big culture shock.
For its European operations under the subsidiary Play Europe (operating under a Maltese AOC) pilots and senior cabin crew are sourced locally in the countries of the lessees. They are hired and based in those countries, not Iceland.
DeleteWhilev for flights operating out of Iceland (under its Icelandic AOC), cabin crew and pilots are typically Icelandic-based. So they would hire local crew in Kosovo.
DeletePLAY doesn’t even want to keep its Icelandic AOC. They plan to completely become an ACMi airline with their Maltese AOC. They will fire all Icelandic crew for sure. The thing is, I believe the ACMI bubble is about to burs as more aircraft are becoming available on the market, there is less need for so many ACMIs which popped up the last few years. Although if PLAY manages to make this deal in Kosovo it could be a good source of income for them.
DeleteThis reminds me on last Adria days when they tried anything just to survive.
ReplyDeleteWell Adria was into ACMI several years before they went bankrupt. But back then, ACMI was much less needed. Now it has become almost the norm.
DeletePLAY just ended all their U.S. services... second WOW. Airline is failing lol
ReplyDeleteThey are ending them in October. Read the article.
DeleteThats what I meant. I did read the article.
DeleteAren't the same people that ran WOW now running PLAY?
DeleteGiven the location of Iceland they will have no connecting passengers without US services, really don't think this bodes well for them.
DeleteThey will soon have a lot of empty aircraft looking for someone to fill them.
Delete@9.10
DeleteYes. PLAY was founded and is still led by several former Wow Air executives
They have 6 planes, as far as I can see
DeletePRN is the most unique market in Europe where ACMI providers and tour agencies rule.
ReplyDeleteTrue
DeleteThis is so random
ReplyDeleteA virtual airline model makes sense given the strong local travel agency network.
ReplyDeleteThe virtual airline model is becoming more common, especially for small markets. It’ll all come down to execution and competitive pricing.
DeleteSounds promising, but virtual airlines often struggle without strong backing.
ReplyDelete"The three Kosovo travel agencies involved reportedly command a combined 54% share of the market at Pristina Airport"
DeleteDefinitely GP is one of them.
DeleteHow stable is PLAY financially? They've only been around a few years and now they're restructuring and giving up their Icelandic license?
ReplyDeleteNot looking the best. As announced ending all U.S. services. Seems like this is something they are trying to do to survive
DeleteWell the model that they orginally set up the airline didn't work. Now they are abandoning scheduled ops and going into ACMI.
DeleteGP Aviation showed there’s room to grow at PRN. If PLAY brings newer aircraft and better schedules, they’ll get a loyal following quickly.
ReplyDelete+1
DeleteLOL
ReplyDeleteCurious to see how this affects GP Aviation, Chair and easyJet. The Kosovo market is crowded in the diaspora segment.
ReplyDeleteThe tour operator which pays GP Aviation to fly for them is part of this virtual airline.
DeleteDoes it mean that their deal with GP Aviation will be terminated? Or they just need more aircraft?
Delete^ most likely.
DeleteThere go the old 737 classics :(
DeleteIt was about time. Although I just noticed that a Canadian airline called Air North which I see is praised by absolutely everyone in every review flies 33 year old B737-400s
DeleteSounds like WOW 2.0 in a different wrapper. PLAY couldn’t make it work in the US and now it wants to try Kosovo? Feels risky.
ReplyDeleteWell, these tour operators can find a use for at least 6 of Play's A320/A321. It is true that they are failing, but this might work, given the unique situation of PRN market. Ancient airliners will be substituted with NEOs and under a unified brand.
DeleteI think airBaltic might have been a good partner for these tour operators. They are struggling to find use of their A220 and this type might suit better PRN for expansion to more leisure destinations like Rome, Amsterdam (since EasyJet is closing), Paris, Barcelona etc and having more frequencies in thin lines in Germany.
+1 last anon
DeleteIt’s hard to trust this kind of setup. No AOC in Kosovo, no real investment in local infrastructure… just wet leased aircraft and a brand
ReplyDeleteLiterally no one has a Kosovo AOC. Not sure if the local aviation authority which is the pinicle of nepotism and corruption would be able to issue an AOC.
Delete09:28
DeleteYou are one of those who likes to smear everything that is Kosovo.
I'm not smearing anything or everything. it is true. Just read the EU progress reports on Kosovo on air traffic. They have identified the aviation auhtority as a ceaspool of corruption.
Delete@an0927, and how is this different from the current situation in PRN? At least the market is being served by local entrepreneurs and the airport is not selling their soul to Wizz and Ryan.
Delete09:28
DeleteThis portal is not about corruption but about Aviation.
Less to do with corruption and more to do with consumer preference
Delete@10.36 corruption in aviation is discussed here regularly and should be.
DeleteThis will just mean more direct flights from Pristina to cities in Germany and Switzerland
ReplyDeleteMaybe Pristina-Reykyavik :D
DeletePLAY Kosovo.
ReplyDeleteIronically Iceland provides air navigation for Kosovo's lower airspace.
ReplyDeleteAnd Hungary the upper airspace.
Delete@09:43 Your statement is false.
DeleteKosovo controls lower airspace. While Hungary has a year long contract to conduct upper airspace.
A framework agreement exists between KFOR (under a NATO mission) and Iceland’s Transport Safety Agency (ICETRA), established in early 2020, under which Iceland provides airspace safety oversight, technical support, and helps integrate new lower-altitude routes. celandic experts also contributed to certifying and managing Pristina Airport’s ATC and to training local air traffic controllers
DeleteUpper Airspace (above FL205) is controlled by HungaroControl (Hungary) under a separate agreement since 2014. It is no 'year long contract' it has been ongoing for 11 years.
At least the aircrafts look way newer and modern compared to what GP Aviation offers
ReplyDeleteYes. New neos compared to mostly ancient 737 classics.
DeleteThis would be a win for lcoal market. Newer and more modern aircraft.
ReplyDeleteThose red birds would be a nice sight at PRN.
ReplyDeleteSome are allready in famoun "polar bear in snow" livery, rest will be soon.
DeleteTypo - famous!
DeleteThey have a polar bear livery???
DeleteWhat utter nonsense.
ReplyDeleteHow is it nonsense? On one hand, PRN is dominated by tour operators. Now those tour operators want to establish a virtual airline. Common brand, newer planes, better service. For this they want an ACMI provider. On the other hand, Play's business model is failing and are looking to become an ACMI provider.
DeleteAnd what future do the tour operators have? Somehow I don't see young people rushing to buy their tickets via tour operators. In other words, they will be relevant as long as older customers are around. Younger ones, especially those who live in the West, will opt for online purchases.
Delete@Nemjee Maybe this is the purpose of the virtual airline, to make smth better than the current set up. These tour operators have revenues of more than 200m EUR per year. If they manage to make smth good out of this (good booking portal, newer planes, unified brand), they will be able to keep this market share in the future.
Delete@Nemjee all tour operators have websites where you can buy your ticket. Most of the tickets are sold that way.
DeleteHad to google what smth means.
DeletePlay has no future. They bet on Icelandair's model and they lost.
ReplyDeleteThis adventure in K&M will last until they officially go bankrupt.
Era of small regional carriers is officially over. Add to that the fact that ACMI isn't in such hot demand you get a very unstable and unpredictable future for this business model.
When it comes to the ex-YU region, local growth will be fueled by Air Serbia, Wizz Air and Ryanair. I don't see other carriers (well, Croatia Airlines and Air Montenegro) surviving for much longer.
As we've seen in yesterday's newsflash, Croatia Airlines is becoming increasingly irrelevant in ZAG.
If PRN wants to grow then it should look to major LCC carriers such as Wizz Air or Ryanair. After all, didn't EW's expansion over there fail?
Agree with need of major LCC opening a base. I think they would bankrupt these family run tour agencies over night.
DeleteMy guess is that these tour operators have good connections and are discouraging PRN from attracting a major LCC to set up shop there.
DeleteYes most likely, even some deal with airport too maybe.
DeleteFair points, but I wouldn’t count PLAY out just yet.
DeleteSure, the US routes didn’t work, but Kosovo’s a different game. Huge diaspora demand, limited direct links, and strong local agency partners give them a shot. GP Aviation’s already shown smaller players can work at PRN.
🤣🤣🤣
ReplyDeleteShare with us what is so hilarious for you?
DeleteThis actually makes sense. Good on Play management for seeking out this opportunity.
ReplyDeleteOn good Adria A. track.
DeleteWell ACMI is very lucrative business at the moment.
DeleteAir Baltic prove you are not right.
DeleteWhy Malta as the AOC base for so many airlines?
ReplyDeleteEU market access without having to operate large bases or infrastructure. It has a competitive corporate tax regime and no withholding taxes on outbound dividends, interest or royalties.
DeleteWhat happens if this takeover of PLAY fails? Will the whole Kosovo airline plan collapse too?
ReplyDeleteTotally. The tour operators will just give up and surrender. There are no other ACMI provider that they can negotiate with.
DeleteWill the new airline have its own brand or fly under PLAY’s name? Will be interesting to see how it’s marketed.
ReplyDeleteMost likely continue operating under Play brand.
DeleteThey are not just cancelling US but cutting routes left and right. They just cancelled Reykayvik-London Stansted from October.
ReplyDeleteWell it's normal. They are completely changing their business model froma scheduled airline to an ACMI provider. They will just keep a few leisure routes from Reykyavik. So there will be many more cancelld destinations in next few weeks.
DeleteOMG, Kosovo is overtaking Slovenia in this regard? Well done Mrs. Bratusek!
ReplyDeleteAnd Play had talks with Slovenian government. Maybe they were interested in launching virtual flag carrier
Deletehttps://www.exyuaviation.com/2024/10/icelands-play-airlines-in-talks-with.html
Too much work for the ministry.
DeletePlay profit after tax (USD)
ReplyDelete2021: −22.5
2022: −45.5
2023: −35.2
2024: −66
Great success
DeleteWell that's why they are changing their business model.
DeleteThese guys have burned through so much money. And WOW Air before that was the same.
DeleteVery interesting. This could be a chance to establish a sustainable airline, especially if it's true they are partnering with GP Aviation.
ReplyDeletePlay is desperate
ReplyDelete