Icelandair to move older aircraft operations to Malta

Icelandair plans to use Malta to operate some of its older Boeing 757 and 767 aircraft as new Airbus planes are introduced into its Icelandic fleet, CEO Bogi Nils Bogason told mbl.is.

The airline has bought a stake in the company that holds Play’s air operator certificate in Malta. Bogason said the move would allow Icelandair’s charter operation, Loftleiðir, to continue operating older aircraft while reducing operational complexity in Iceland.

“There is complexity involved in operating older aircraft alongside the new planes, so we intend to move the operation of the older aircraft to Malta,” Bogason said.

He said the arrangement was primarily intended to improve efficiency and strengthen Icelandair’s core operations in Iceland. It would not affect the airline’s domestic operations, he said.

Bogason rejected comparisons with Play’s previous plans for Malta. Play had been preparing to withdraw from, or significantly reduce, its route network operations in Iceland and end its connecting-flight model. Icelandair, by contrast, intends to strengthen its connecting hub at Keflavik and its base in Iceland.

“With this, we increase flexibility and achieve a certain simplification,” Bogason said.

Icelandair expects to hire some employees in Malta, although the number has not yet been decided. Bogason said the group had maintained positions in Estonia and the Philippines for 10 years, and that the Malta workforce would be relatively small compared with the total number of employees in Iceland.

At first, the number of aircraft based in Malta will be fewer than five. Loftleiðir has two or three aircraft involved in Heimsferðir operations, Bogason said.

He added that Icelandair had conducted due diligence before the purchase and that nothing unexpected had emerged.