Icelandair to operate older planes from Malta subsidiary

Icelandair is establishing a subsidiary in Malta to manage its older Boeing 757 and 767 aircraft, aiming to streamline operations and enhance cost efficiencies. Bogi Nils Bogason, CEO of Icelandair, explained that as the airline integrates new Airbus planes into its fleet, the older aircraft will be operated through the Maltese entity.

This strategic shift involves relocating the operational base for these specific aircraft to Malta. Bogason clarified that while some "employees" will be hired in Malta, the move will not impact the airline's domestic operations in Iceland. The older planes, particularly the Boeing 757s used by Loftleiðir for charter flights, will continue to be operated for some time. Managing these older planes alongside newer models presents complexities that the move to Malta is intended to simplify.

Bogason emphasized that this initiative is designed to strengthen Icelandair's core operations in Iceland. He distinguished this strategy from a previous plan by the airline Play, which had aimed to move some operations to Malta while scaling back its route network in Iceland. Icelandair, conversely, intends to bolster its Keflavik hub and reinforce its Icelandic base.

The company anticipates hiring staff in Malta, similar to its existing operations in Estonia and the Philippines, which have been in place for a decade. Initially, the Maltese operation will manage a limited number of aircraft, estimated to be fewer than five, with Loftleiðir currently operating two to three planes for charter services. Bogason assured that a thorough due diligence process was completed prior to the acquisition, revealing no unexpected issues.