By Joe Smith
Copyright mirror
Thousands of passengers are expected to be stranded and hundreds of employees face job losses after a budget airline announced it is ceasing operations immediately. Icelandic airline Fly PLAY, based in Reykjavík said it has gone into administration and all flights are cancelled with immediate effect. An announcement on the airline’s website says: “Dear passenger, Fly PLAY hf. has ceased operations, and all flights have been cancelled. “We kindly advise you to check flights with other airlines. Some carriers may offer special “rescue fares” considering the circumstances.” Passengers have been told to contact card issuers for tickets booked with credit cards, while those with bookings as part of larger tour packages including accommodation should consult with their travel agent. They added: “Some rights may also apply under EU Air Passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.” According to reports in local media outlet RUV, “400 people are losing their jobs” with the company “trying to pay staff their wages”. “All flights were halted immediately,” they added following the company’s announcement, explaining that “thousands of passengers are affected and will either miss out on their journeys or need to find a way back home.” PLAY was set up in July 2019, and launched flights from its hub at Keflavík International Airport, Reykjavik, in June 2021. It initially flew to six destinations in Europe: Alicante, Tenerife, London, Paris, Copenhagen, and Berlin. PLAY also operated between London and Reykjavik, although before today’s announcement there were no seats on sale after November 1. In a statement released on Monday morning, September 29, the company’s board revealed a number of reasons for the decision, including a history of weaker-than-expected financial performance and a recent sharp decline in ticket sales. The board said: “The board of Fly Play hf. has decided to terminate operations, and all of the company’s flights have been cancelled. The company will work closely with authorities and employees to implement the necessary steps for winding down operations. “There are many reasons behind this decision. The company’s performance has long fallen short of expectations, ticket sales have been poor in recent weeks and months following negative media coverage, and internal disagreements among some employees regarding strategic changes have further strained the situation.” Details revealed by the board were about changes that could not deliver results needed. They added: “Last fall, Play introduced a new business model that initially inspired significant optimism. “Unfortunately, it has now become clear that these changes cannot deliver the results needed to overcome the airline’s deep-seated financial troubles. In hindsight, these measures would have needed to be implemented much earlier.” The Mirror has approached PLAY airlines for a comment.
