- Birgir Jónsson is the CEO of Play, an Icelandic airline that offers cheap transatlantic flights.
- He played drums in a metal band until 2018 and held several jobs outside of aviation.
- Jonsson told BI how Play keeps costs low and how important volcanoes are to tourism in Iceland.
Birgil Jonsson is well aware that the fortunes of low-cost airlines can quickly turn around.
From 2014 to 2015, he was deputy CEO of Icelandic ultra-low-cost airline Wow Air, which went bankrupt in 2019. Shortly thereafter, two former Wow executives founded its spiritual successor, Play. Jonsson was appointed CEO in 2021.
Play is currently one of, if not the cheapest way to fly transatlantic. In 2022, there was a lot of talk about a $99 flight ticket between the US and Europe, but it was only for one-way round trip.
Looking at next month's flight tickets, round-trip flights from New York to London start at around $450.
The same itinerary will cost you at least $560 on Icelandair. Icelandair is Icelandair's flag carrier and what Jonsson calls its main competitor. This is because both include a layover in Reykjavik.
North Atlantic, a low-cost airline that uses wide-body planes for nonstop flights, will have round-trip tickets starting at about $400 in April. Prices vary, but some days Play is cheaper.
Play is run by a CEO with an unconventional range of experience.
“I'm not a funny guy,” Jonsson said modestly, speaking to Business Insider over a video call while wearing a black T-shirt and jacket.
His foray into the field began as CEO of Iceland Express, which was acquired by Wow. But, unusually for an airline boss, he has also held several non-aviation jobs.
According to Jonsson's LinkedIn, he is the co-owner of a perfume shop in Reykjavík and, until 2018, was the drummer for a metal band called Dimma. A YouTube video shows his tattoos on his sleeve on display during a concert.
He told BI that his past work included rebuilding a post office in Iceland and running a printing company in Romania.
“I've done a lot of things and it's always the same thing,” he said. “It's basically running a company, building a team, building a good culture, and getting the job done.”
How low-cost airlines keep costs low
Covering 41 destinations (some seasonal) with just 10 jets, Play is able to operate a low-cost model across the Atlantic thanks to Iceland's geography. Iceland is two hours closer to New York than London.
It's similar to Southwest Airlines or Ryanair in that it's a completely no-frills airline. There is no in-flight entertainment, minimal legroom, and they fly to small airports like New York's Stewart International Airport, a little-used facility about 90 miles from Manhattan.
Using only one type of jet, the Airbus A320neo and A321neo, also saves on training and maintenance costs.
In addition, the aircraft is in the air almost all the time, making about five flights per day for a total of 12 to 13 hours, Jonsson said.
“That's the only way to make money in this game,” he added. “Planes are meant to fly.”
Transatlantic flights aren't the only part of the business model. Jonsson also pointed to the flow of tourists between Iceland and mainland Europe.
tourism in iceland
He told BI that the average Icelander travels abroad two or three times a year “because it's a relatively wealthy place.”
This island nation of 370,000 people, about the same size as New Orleans, has a long history in aviation.
In the 1960s, Icelandair began offering connecting passengers the opportunity to extend their stay in Iceland at no additional charge. This is a perk that Play also offers. This helped put the city on the map as a tourist destination.
Tourists are also attracted to the country's stunning scenery and volcanic activity. Iceland is located at the intersection of the North American and Eurasian plates.
Volcanic activity is dangerous to airplanes. If ash enters the engine, it can cause the engine to stall, as was the case on British Airways Flight 009 in 1982.
But Jonsson says volcanic eruptions are perfect for the country's image because tourists “want to experience brutal nature, ice and fire.”
“As long as we don't lose people or lives, this is what we're selling,” he added.
Jonsson pointed to the 2010 Eyjafjallajökull eruption, which caused major disruption to European air travel.
“This made Iceland's name familiar everywhere and started a huge tourism boom,” he told BI. “Essentially, this was the biggest marketing campaign ever undertaken by a destination in the history of the world.”
“So we are not doing anything new. We are doing the same business model that has been operating here in Iceland for decades,” Jónsson said. Ta. “We just knew that if we could do this at a lower cost and offer lower freight rates, we would be successful.”
But Jonsson is also cautious about not repeating Wow Air's mistakes.
He pointed to various financing and bad business moves. Wow was owned by a single individual, while Play is listed on the Nasdaq stock exchange. Lo and behold, this defunct airline didn't stick to one type of plane like most low-cost airlines, but instead bought three Airbus A330 jets to expand service to places like India and Los Angeles. I used it to increase my spending.
All of Prey's jets are part of Airbus' single-aisle A320 family, and Jonsson said the airline was also keen to order the A321XLR. He added that an ultra-long-range version of the A321 could open up California and Dubai as destinations without retraining pilots.
Building an airline during a pandemic
Another advantage of Play is that it has the youngest fleet in Europe. The airline, which was born in the wake of the pandemic, was able to start on more level footing and get good deals on new planes as other airlines suffered a drop in demand.
“We were able to acquire the latest generation Airbus, the Neos, brand new at an unbeatable price,” Jonsson said. “He's probably 30 to 40 percent more expensive now.”
Pray was also in the unusual position of benefiting from sanctions against Russia. While other airlines had to avoid the country's airspace, increasing travel times, Play got the planes at a discount.
“I think we acquired one of the aircraft seized from Russia. We even acquired it on very good terms,” he told BI.
Jonsson said there was “incredible” pressure over the last year as Play expanded. The plan was to hire 200 new people, add 30 destinations and increase the number of aircraft to 10 in a “very fast-tracked move.”
“So we're all here – I wouldn't say we're taking a breather – but we're not just thinking about growth all the time, we're focused on the day-to-day work,” he added.
“That's what I'm excited about. We're actually going to come out stronger this year than we've ever been.”
