Budget carrier Play is poised to shut down its transatlantic operation and transfer its entire fleet to Malta’s registry, as part of a proposed takeover bid.

Two shareholders in Play – its chief executive and vice-chair – are seeking to acquire the entire share capital of the Reykjavik-based operator.

Under the takeover plan, which broadens a diversification initiated last year, the transatlantic bridge routes to North America via Reykjavik would be closed after the summer season.

Play will surrender its Icelandic air operator’s certificate and shift its entire fleet of 10 Airbus A320neo-family jets entirely to the Maltese AOC – under the name Play Europe – obtained earlier this year.

Four aircraft would remain based Reykjavik to serve the leisure market, primarily operating services to southern Europe and north Africa, along with a “select” number of northern European cities.

“The offering of flights to sunny destinations from Iceland will remain strong,” it says.

Play’s other six aircraft will be offered for lease. It insists the demand for modern narrowbodies is “high”, given supply constraints, and that its A320neo-family aircraft – fitted with CFM International Leap-1A engines – are “particularly attractive”.

Play has already entered a two-and-a-half year lease agreement with SkyUp covering four aircraft, and says “discussions are ongoing with several counterparties” for the remaining two.

Chief executive Einar Orn Olafsson and vice-chair Elias Skuli Skulason are aiming to take over Play through a special-purpose vehicle called BBL 212.

The two individuals hold a combined 20% of Play.

BBL 212 has obtained $7 million in financing in preparation, but will need to secure a further $13 million to support a formal offer and fund Play’s operations. The proposed offer is IcKr1 – less than 1 US cent – per share.

Play was originally established to serve transatlantic routes but its unit revenues have remained below expectations – a situation the carrier attributes to disruption from the pandemic, geopolitics, and redeployment of capacity to transatlantic services in the wake of airspace closures.

It also argues that introduction of longer-range single-aisle aircraft “reduces reliance” on hub-and-spoke networks.

While the hub-and-spoke operations to North American are set to end, Play Europe has nevertheless filed an application with US authorities to operate charter services on transatlantic routes, under the US-European ‘open skies’ pact.