Einar Örn Ólafsson Takes the Helm at Iceland’s PLAY Airlines: A New Era of Growth and Strategy
einar Örn Ólafsson, the newly appointed CEO of Iceland’s low-cost carrier PLAY Airlines, is steering the airline into uncharted territory. With a focus on profitability and strategic growth, Ólafsson is reshaping the airline’s trajectory, emphasizing direct connections between Iceland and Europe while navigating the competitive North Atlantic market.
From Investor to CEO: Ólafsson’s Journey
Ólafsson’s career didn’t begin in aviation. He initially joined PLAY Airlines as an investor, drawn by the airline’s potential. “I was fascinated by the potential of this airline,” he shared in a recent podcast. His rise within the company has been steady—starting as chairman of the board, then joining the management team, and now leading as CEO.
A Shift in Strategy
Under Ólafsson’s leadership, PLAY Airlines operates a fleet of six Airbus A320s and four A321 Neos. While the airline initially focused on connecting Europe and North America via Iceland, it is now prioritizing direct routes between Iceland and Europe. “We see that there is potential here,” Ólafsson explained, citing increased competition on the North Atlantic route.
Competing with American Airlines
The North Atlantic market has become fiercely competitive, with American airlines expanding their offerings. “American airlines have extended their offer.They are particularly well positioned towards Northern Europe,” Ólafsson noted. To counter this, PLAY Airlines is targeting smaller, underserved airports in North America, which offer lower costs and allow the airline to maintain competitive pricing.
A Pragmatic approach to Growth
Ólafsson’s predecessor aimed for a fleet of 15 aircraft, but the new CEO is taking a more measured approach. “We have to be realistic—business has not developed as planned. But we are working on getting back on track soon,” he said. He views the Airbus A320 family as the ideal fit for the airline’s operations.
Tackling the German Market
Germany remains a challenging yet crucial market for PLAY Airlines. High costs and taxes make it a difficult environment, but Ólafsson remains optimistic. “Germany is expensive, but a central market. Many airlines withdraw, but we continue to see potential here,” he stated.
Key Insights from the Podcast
For more insights into Ólafsson’s vision, including the role of cargo business and strategies for managing winter overcapacity, tune into the Airspace podcast featuring Christopher Scheffelmeier.
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Summary Table: PLAY Airlines Under Einar Örn Ólafsson
| Aspect | Details |
|————————–|—————————————————————————–|
| Fleet | 6 Airbus A320s, 4 A321 Neos |
| Focus | Direct Iceland-Europe routes |
| North America Strategy| Targeting smaller, underserved airports |
| Growth Approach | Measured, with a focus on profitability |
| German Market | challenging but central; PLAY remains committed |
Einar Örn Ólafsson’s leadership marks a pivotal moment for PLAY Airlines, as the carrier adapts to market dynamics and charts a course toward sustainable growth.