Client Alert: Fly PLAY hf. Ceases Operations and Cancels Flights

Icelandic low-cost airline Fly Play hf. ("Play") has ceased operations and cancelled all flights. 

Key Points for Passengers and Counterparties

• Refunds: Passengers who purchased tickets by credit card should contact their card issuer to request a chargeback or refund.

• Package Holidays: Travellers who booked flights as part of a package through an EEA travel agency (including accommodation or other services) should contact their travel agent.

• EU Passenger Rights: Certain protections may apply under Regulation (EC) No 261/2004.

• Bankruptcy Claims: Any outstanding claims must be submitted to the Icelandic administrator once appointed.

Lithuanian Connections

PLAY intermittently operated direct flights between Reykjavík and Vilnius, connecting Lithuania with Iceland and transatlantic destinations via Keflavík. The carrier also maintained a Lithuanian subsidiary, Play Lithuania UAB, registered in Vilnius. However, this entity did not hold a Lithuanian Air Operator’s Certificate (AOC).

Lithuanian passengers are directly affected by the cessation of operations and may rely on EU air passenger protections when seeking refunds or compensation. Lithuanian counterparties (including travel agencies, service providers, and creditors) may also have claims or require assistance in the insolvency proceedings and related enforcement actions.

Šulija & Partners Law Firm Vilnius is available to assist companies, creditors, and other stakeholders in addressing airline insolvencies and distressed situations, including asset repossessions, enforcement of claims, and ongoing legal support across multiple jurisdictions.

Back to the news list