Failure of Play Airlines will be ‘unsettling’, CAA declares   

The collapse of Icelandic budget carrier Play will be “unsettling” for prospective passengers and staff, the UK aviation regulator has declared.

 

Play, which was licensed to operate services from Stansted and Liverpool airports to Reykjavik, ceased operations yesterday (Monday), the Civil Aviation Authority confirmed. 

 

Play was only serving the UK four times a week between Iceland and Stansted as part of a major retrenchment of services including plans to drop transatlantic services between Iceland and North America from October. 

 

The failure came after the airline’s chief executive had hailed August as being “another strong month” for the airline, achieving its highest ever unit revenue.

 

Einar Orn Olafsson, reporting on last month’s performance, said: “The results demonstrate that our focus on point-to-point leisure destinations is paying off, highlighted by the fact that this past August we achieved our highest ever unit revenue for the month of August. 

 

“We remain fully focused on strengthening our leisure network and ensuring long-term profitability.”   

 

The airline had hailed a refinancing by using a $23 million convertible bond which “significantly strengthens the company’s operational foundation and enables Play to focus on profitable projects and continued growth”. 

 

No explanation has been given for the abrupt decision to cease operations.

 

The CAA confirmed that all Play Airlines operated flights are now cancelled and advised travellers not to go to the airport as flights will not be operating.

 

Play customers were urged to make their own alternative travel arrangements if required.

 

A CAA spokesperson said: “It’s always unfortunate when an airline ceases operations, and we understand that Play Airlines’ decision will be unsettling for its employees and customers.

 

“UK customers seeking the latest information are advised to visit the Civil Aviation Authority’s website.”

 

Passengers who booked direct with Play and paid by credit card may be protected and were advised to contact their card issuer for advice.

 

Those who booked via a third party should contact their booking or travel agent “in the first instance” as they may have provided travel insurance that includes scheduled airline failure cover, according to the CAA.

 

But the type of protection provided may vary depending on the type of policy taken out. 

 

“A policy may simply cover the cost of the original tickets purchased or any unused portion, or the additional cost of purchasing new flights, such as new tickets for travel back to the UK.”