Market Intelligence: -Airline Aircraft Orders

World’s Largest ACMI Provider and Aviation Conglomerate Avia Solutions Group Places Order for 80 B737MAX Aircraft

Dublin, Ireland headquartered Avia Solutions Group has ordered 80 737-MAX. The transaction, split between 40 firm orders and 40 purchase rights, is the first direct order placed by the world’s largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider.

The order is part of Avia Solutions Group’s ongoing strategy of investing in bolstering its capacity to meet the continued strong demand from airlines globally for additional aircraft during peak seasons.

Gediminas Ziemelis, Chairman of Avia Solutions Group, said: “Leisure-focused airlines around the world experience notable seasonal fluctuations in traffic, with peak demand for flights typically occurring in the summer season. To effectively meet this need for extra capacity, and increase revenue, airlines require additional aircraft specifically during these peak periods. ACMI, or wet leasing, is the optimal solution to address this need without airlines having to take on long-term financial commitments. As the world’s largest ACMI provider, carrying over 35 million passengers annually for our clients, we have committed to a strategic approach of expanding our capacity to meet our customers’ seasonal needs, and our first order with Boeing is a key pillar of this. This is a proud moment for all of us at Avia Solutions Group and is testament to the fact that Avia Solutions Group is now entering a clear phase of sustained growth. These 737 MAX will enhance the fleets of our airlines, giving their customers both operational flexibility and greater fuel efficiency.”

Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing said: “ACMI providers such as Avia Solutions Group offer important, flexible capacity to meet the dynamic demand in our industry and we are honored Avia has selected Boeing airplanes to help meet that demand from its customers,” said Brad McMullen, Boeing senior vice president of Commercial Sales and Marketing. “By choosing the 737-8, Avia is aligning with its customers’ plans to operate increasingly fuel-efficient fleets that improve the passenger experience.”

The deliveries will start in 2030. The Group currently operates a fleet of 220 aircraft, including 14 737-8s.

ACMI is a strategic B2B solution for seasonal fleet management that allows scheduled airlines to manage their fleets efficiently, adjust to market fluctuations and maximize their revenue by increasing aircraft capacity during peak demand seasons only. It is recognized as one of the few ways for scheduled airlines to improve profitability by 2% to 3%.

Avia Solutions Group has 11 AOCs (Air Operator certificates or “AOC”), including Avion Express, Smartlynx, Klasjet, Air Explore, BBN, Ascend Airways, Skytrans and others. These AOCs operate all year round in 60+ countries for various scheduled airlines and tour operators.

By building this global network of AOCs, Avia Solutions Group can strategically transfer its aircraft to markets where its customers need additional seasonal capacity.

Avia Solutions Group consists of 250+ companies providing a wide range of aviation services such as aircraft maintenance and repair (MRO) by FL Technics, pilot and crew training by BAA Training and ground handling by Aviator & BGS. The Group’s team encompasses 14,000 highly qualified aviation professionals.

Source: Avia Solutions Group
Photo Credit: Avia Solutions Group

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Canadian Airline Orders 3 Turboprop Aircraft – Delivery 2025 and 2026

ATR, the world’s leading regional aircraft manufacturer, is proud to announce that Rise Air, a 100 per cent Indigenous-owned airline providing essential services across Saskatchewan, is upgrading its fleet with three new 68-seat ATR 72-600, becoming the Canadian launch customer for the latest generation ATR -600 series. The first aircraft is a firm order with ATR, set to be delivered by the end of 2025. The company plans to lease two others for delivery in 2026.

ATR’s turboprops are flying in 100 countries, often in challenging conditions, providing vital connectivity to the local communities. They are known for their low operating costs and ability to operate on unpaved and short runways in extreme weather conditions, including temperatures as low as -45°C. While earlier generations of the ATR 42 and ATR 72 are operated by Rise Air and eight other Canadian passenger and cargo airlines, totalling over 50 aircraft, this landmark agreement represents a significant milestone for both Rise Air and ATR, bringing the newest version to Canada.

The latest ATR 72-600 is fitted with new PW127XT engines produced by Pratt & Whitney Canada in Montreal, which offer high reliability, lower maintenance costs, and a remarkable 45% reduction in CO2 emissions compared to similar-sized regional jets. The ATR 72-600 also brings an enhanced passenger experience thanks to its modern cabin with large overhead bins, comfortable 18-inch-wide seats, and upgraded air conditioning and heating system. The aircraft’s fuel efficiency, lower operating costs, increased availability, and improved reliability make it an ideal choice for operators looking to replace ageing fleets.

Derek Nice, President and CEO at Rise Air, said: “We are thrilled to be introducing the ATR 72-600 to Canada, bringing our customers more comfortable, more reliable air service at remote work sites and communities across the north. The ATR 72-600’s outstanding performance and low environmental footprint make it the perfect choice for operating in the diverse and challenging conditions where we operate. We look forward to continuing to enhance regional connectivity and support economic growth in the areas we serve.”

Nathalie Tarnaud Laude, Chief Executive Officer of ATR, commented: “We are delighted to support Rise Air as they introduce the first ATR 72-600 in Canada, marking a double milestone as it also represents the debut of the -600 series in the country. This agreement not only reinforces the strength of our aircraft in the regional market but also demonstrates the growing interest in the ATR -600 series for markets like Canada, where replacing older aircraft with efficient, high-performance alternatives and enhancing year-round connectivity in extreme weather conditions are crucial. We look forward to working with Rise Air to deliver exceptional service to Canadian communities.”

Rise Air’s commitment to the ATR -600 series is the largest investment the airline has made in its 69-year history and is the biggest step to date in its fleet renewal programme. The agreement with ATR represents generational change, positioning Rise Air to operate the most modern regional aircraft fleet in Canada.

About Rise Air
Rise Air is an Indigenous-owned airline, operating 25 aircraft, and employing 300 skilled professionals to provide scheduled flights, workforce transportation and medevac services, connecting 27 communities and remote work sites across Saskatchewan’s north to Saskatoon, Prince Albert and beyond. Its affiliate Snowbird Aviation Services provides terminal services, ramp handling, fueling, de-icing and cargo handling for Rise Air and other customers at 12 airports throughout the region.

About ATR
ATR is the world number one regional aircraft manufacturer with its ATR 42 and 72, the best-selling aircraft in the below 90-seat market segment. The unifying vision of the company is to accelerate sustainable connections for people, communities and businesses, no matter how remote. Flown by some 200 airlines in over 100 countries, ATR aircraft opened 160 new routes in 2023, facilitating the development of territories and enabling access to crucial services like healthcare and education. Thanks to ATR’s focus on continuous innovation and the intrinsic efficiency of the turboprop technology, ATR aircraft are the most advanced, versatile, cost-effective and lowest-emission regional aircraft on the market, emitting 45% less CO2 than similar-size regional jets. In January 2022, we flew the first ever commercial aircraft using 100% SAF in both engines. ATR is a joint-venture between Airbus and Leonardo.S

ource: ATR
Photo Credit: ATR

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Avia Solutions Group Announces 2024 Appointment for Executive Vice Chairman of the Board

Irish-based Avia Solutions Group, the world’s largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider, has appointed Tom Klein as Executive Vice-Chairman of the Board, a new role, effective immediately.

He will continue in his roles as Senior Managing Director at US -based Certares Management, a private equity investment firm which invested into the Group in 2021.

Klein brings to the Group extensive knowledge of the global aviation, travel, tourism and technology sectors. His main responsibilities will include leading on investor relations and advising on wider business development while his geographic location will allow for executive presence and a greater focus on activities in the Americas.

The appointment comes at a time when Avia Solutions Group is growing significantly, with the Group reporting first half of 2024 revenues of €1.2 billion, a year-on-year increase of 29% and a 34% growth in EBITDA year-on-year to €179 million.

The Group has ongoing plans to further expand its global presence and ability to offer capacity solutions, particularly during peak seasons, to airlines around the world.

Gediminas Ziemelis, Chairman of Avia Solutions Group, said: “With his extensive experience in global aviation and travel sectors, and a proven track record in investor relations, Tom is a great addition to our senior leadership team. I look forward to working with him closely as we execute our long-term growth strategy.”

Tom Klein, Executive Vice-Chairman of the Board of Avia Solutions Group, said: “I am honoured to be appointed as Executive Vice-Chairman. The demand for the Group’s services is increasing significantly, and I look forward to playing a key role in expanding our global customer base.”

Prior to joining Certares in 2018, Klein was the CEO and President of Sabre, a global technology company serving the travel industry. Klein led the successful IPO of Sabre in 2014. He served 7 years as a founding board member of Brand USA, culminating his tenure as Chairman. Klein has served on multiple boards and prior to Sabre, he held management positions at American Airlines and Consolidated Freightways

Avia Solutions Group currently operates a fleet of 214-aircraft, split between 174 passenger aircraft and 40 freighters.

Source: Avia Solutions Group
Photo Credit: Avia Solutions Group

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Spanish Airline First to Take Delivery of A321XLR

Spanish flag carrier Iberia has taken delivery of its first A321XLR, becoming the launch operator of the world’s newest single-aisle aircraft. The aircraft, powered by CFM LEAP-1A engines, will be operated by Iberia on a number of regional flights across the airline’s European network before its first transatlantic mission from Madrid to Boston later in November.

Marco Sansavini, CEO & Chairman at Iberia, said: “We are very proud to be the launch airline for this new Airbus aircraft. The A321XLR will allow us to reach new destinations, operating transoceanic routes and doing so in a more efficient way.”

Christian Scherer, CEO Commercial Aircraft at Airbus, said: “Five years in the making, the newest member of the Airbus family is all set to join its first operator, Iberia. The A321XLR will enable countless new non-stop destinations; it truly opens a new chapter in air connectivity. It is another proud “first” for all of us at Airbus in our constant quest to innovate and bring value to our customers. We are pleased to share this special moment with a special customer: gracias y felicidades Iberia.”

The newly delivered A321XLR to Iberia seats 182 passengers in a two-class layout with lie-flat business class seats with direct aisle access. Boasting the new Airspace cabin, the aircraft will provide passengers with long haul comfort in all classes. The XL bins provide 60% more luggage capacity for a more relaxed boarding experience for passengers and cabin crew. In addition, in-seat connectivity is available for passengers at every seat, and the latest lighting system enhances the overall passenger experience.

The A321XLR is the next evolutionary step from the A320neo which responds to market needs for even more range and payload, creating more value for the airlines. It will deliver an unprecedented Xtra Long Range of up to 4,700nm – 15% more range than the A321LR and with 30% lower fuel burn per seat compared with previous generation competitor aircraft, as well as reduced NOx emissions and noise. So far, Airbus has secured more than 500 orders for the aircraft.

The first A321XLR completed its maiden flight in June 2022. This was followed by an extensive test programme involving three test aircraft. As with all Airbus aircraft, the A321XLR aircraft is already able to operate with up to 50% SAF. Airbus is targeting to have its aircraft up to 100% SAF capable by 2030.

Source: Airbus
Photo Credit: Airbus

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Saudi Airline – Riyadh Air Places Firm Order for 60 Airbus A321neo Family Aircraft

Riyadh, Saudi Arabia, 30 October 2024 – Riyadh Air, the new premium international airline based in Saudi Arabia, has placed a firm order for 60 A321neo Family aircraft. The agreement was signed at the Future Investment Initiative (FII) in Riyadh, marking a significant milestone for Riyadh Air. The signing ceremony was attended by His Excellency Yasir Al-Rumayyan Governor of the Public Investment Fund (PIF) and Chairman of Riyadh Air, Tony Douglas, CEO of Riyadh Air, Christian Scherer, Chief Executive Officer, Commercial Aircraft at Airbus and Benoit de Saint-Exupery, Executive Vice President Sales of the Commercial Aircraft business.

“This investment will not only enable us to support economic growth in the aviation industry, it will ensure Riyadh Air operates one of the most fuel efficient fleets. It’ll be instrumental in helping Saudi Arabia achieve its decarbonisation goals,” said Riyadh Air CEO Tony Douglas. “This deal strongly reinforces the positive economic impact of Saudi Arabia’s newest airline on both a global and local scale to facilitate the fast-growing Saudi aviation ecosystem.”

Christian Scherer, CEO of Commercial Aircraft at Airbus said: “We are proud to welcome Riyadh Air as a new Airbus customer and partner. The latest generation A321neo aircraft will bring exceptional efficiency to the airline’s operations, concrete contributions to its decarbonisation goals and comfort to its passengers. We look forward to working together to support the strong ambitions of Saudi aviation.”

The A321neo is the largest member of Airbus’ best-selling A320neo Family, offering unparalleled range and performance. By incorporating new generation engines and Sharklets, the A321neo brings a 50% noise reduction and more than 20% fuel savings and CO₂ reduction compared to previous generation single-aisle aircraft, while maximising passenger comfort in the widest single-aisle cabin in the sky.

To date more than 6,700 A321neo have been ordered by more than 90 customers across the globe.

Source: Airbus

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