Work is underway to transfer eight of Play’s aircraft to its Maltese subsidiary, Fly Play Europe, with operations expected to resume no later than 10 weeks from now, reports Vísir. The move comes after the airline declared bankruptcy earlier this week, leaving passengers stranded across Europe and North America.
According to reports, creditors who participated in Play’s bond issue in August have the option to take control of the Maltese subsidiary. A creditors’ meeting is scheduled for October 6.
Reportedly, creditors of Fly Play hf. had received a letter from Ísafold Capital, stating that Ísafold was negotiating on their behalf with Play’s management and the aircraft leasing company AerCap regarding the transfer of a total of eight aircraft to Fly Play Europe, Play’s Maltese subsidiary founded earlier this year.
Investors who bought into Play’s bond issue in August were provided guarantees on the fulfilment of the bonds by Play. These included pledges on all the shares of its subsidiaries, Fly Play Europe and Play Lithuania, as well as claims against its subsidiaries.
According to Vísir, employees of the Maltese subsidiary were informed in a staff meeting today that efforts were underway to transfer eight aircraft to the company and secure them a Maltese air operator’s certificate. At the meeting, Carmen Cuschieri, head of cabin crew at Fly Play Europe, said operations could restart within the next five days. However, in an email sent later in the day, employees were told the matter was significantly more complex, and it could take several weeks before operations resume.
In the best-case scenario, that might be in four to five weeks, but the safest estimate is six to ten weeks.
Many Fly Play Europe employees who attended the meeting were stranded in Moldova, facing uncertainty about where and when they would be relocated. Much depends on how the complex issues are resolved in the coming days.
On September 30, Icelandic representatives of Play claimed that financing had already been secured for critical matters, such as the Maltese air operator’s certificate for the aircraft.
“Many of my friends in Iceland lost their jobs, but not me. I’m one of, I think, just two people still employed. I wouldn’t be working for Fly Play Europe right now if I weren’t certain that financing for the project was secured,” said Halldór Guðfinnsson, Play’s Director of Operations, to staff at the meeting.
In the follow-up email sent to Fly Play Europe employees after the meeting, it was stated that the situation was more complicated than initially presented. It would not be possible to restart operations in the coming days as first suggested. Most of Play’s aircraft are currently located in Toulouse, France.
“This location is primarily used for long-term storage, extensive repairs, or when operators renegotiate contracts and transfer aircraft between lessors. Major restructuring is ahead, and we cannot expect the aircraft to return to us in the coming days,” the email said.
A significant amount of work lies ahead in transferring the aircraft to the Maltese company. Lease agreements with operators must be renewed, and the aircraft must all pass maintenance inspections again.
Finally, the aircraft will need to be moved to Malta, Mallorca, and Sharm El Sheikh in Egypt, from where they will be operated. Crew assignments must also be arranged, and the Maltese air operator’s certificate secured.
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