Simple Flying recently had the opportunity to speak with Icelandic carrier PLAY’s CEO Birgir Jonsson at the Future Flying Forum. Jonsson shed some light on PLAY’s fleet mix and how it enables the airline to mix up its capacity. We take a closer look at Jonsson’s comments below.
Mixing up capacity
Icelandic low-cost airline PLAY operates with a small fleet of Airbus A320neo and A321neos. The carrier, which launched operations in June this year, plans to use its fleet to mix up capacity as and when needed.
CEO Birgir Jonsson told Simple Flying,
“With the A320 and A321s, obviously bigger sizes, we have the capability of mixing capacity into different destinations.”
PLAY’s business model is built around its hub at Keflavik International Airport. The airline currently serves over 20 destinations around Europe and plans on breaking into the US market next year. The latest estimates would have PLAY’s US network up and running by Spring next year.
Jonsson added,
“We will have fewer destinations in the US with higher frequency. And then we are kind of linking them with a bigger range of destinations in Europe. So you have to basically balance it between the quantity or the load.”
Gradually adding to the fleet
Depending on demand, PLAY’s varied network, especially when it is established in the US, will give the airline an opportunity to mix its A320neos and A321neos.
Jonsson said,
“The profitability and routes and destinations on the European side give you different kinds of profiles. Because we mix them also via destinations, or link feeding destinations, and also with leisure destinations. So it is a massive balancing act, how you basically utilize your network to create the right mix of quantity and bread and butter to keep everything going.“
PLAY plans to slowly bolster its fleet numbers over the next few years, with current projections looking at 15 aircraft in the fleet by 2025.
Jonsson said,
“We have three now, we will have six next spring. And then up to 10 in 2023 and 15 in 2025. We have brand new aircraft coming straight from the manufacturing line, precisely in our specification and configuration. Obviously very economical. The aircraft fit our network perfectly.”
However, the airline isn’t planning on challenging the larger carriers just yet. CEO Jonsson is keen to stress that meeting shorter-term goals of profitability and stability must come first.
“You don’t get any added economies of scale of adding three aircraft, so you basically have to go from 15 to let’s say, 30, or 25. The big jump after 15 is quite high. So our proposal to investors is that we are just going to focus on getting our 15 aircraft, getting profitable and building on our infrastructure. And basically realizing that we will always be a dynamic, smaller, kind of flexible player.”
Have you had the opportunity to fly with PLAY yet? What do you think about PLAY’s expansion plans for the US? Feel free to share your insights in the comments.
