The recently announced low-cost airline, Play, was reported to have some issues finding private investors back in November. Today, with the same tone, Fréttablaðið reports that, as an incentive for investment, Play is proposing a 70% stake instead for equity contribution for investors. Also, According to DV , the airline’s staff hasn’t yet received November’s salary.
The company’s previous plan stated that both investors and Play would get 50% equity. The investors reacted in great opposition to this deal, showing uncomfortable with the idea of the founders owning such a big part of the company. With no investors lining up to come and Play, the company’s executives, together with Iceland Securities (ÍV) lowered the company’s share to 30%.
The plan was for Play to start selling tickets at the beginning of December but over the weekend they sent out an announcement that the sale would be postponed. The airline was supposed to start operating at the end of this year but no dates have been released for the first flight. When contacted by DV the company did not provide any information or statement about the nonpayment of salaries.
Iceland’s only Low-Cost airline, WOW air, went bankrupt at the beginning of the year leaving a big gap in the market. After that several projects tried to bring new hope for on budget travelers, Play was the last one standing but appears to be having a hard time balancing.
Click here to learn more about what is going on with airlines in Iceland.
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