Market Intelligence: -Airline Aircraft Orders

Chairman of Avia Solutions Group Shares Thoughts on Key 2024 Trends in ACMI Leasing

Avia Solutions Group, the aviation conglomerate which owns global pilot training group BAA Training and which has seen impressive growth as shared by its CEO Jonas Janukenas, has shared through its Chairman Gediminas Ziemelis three trends in ACMI leasing for 2024:

  • “Wet Leasing for Financial Agility: With interest rates on the rise, airlines face financing challenges. ACMI leasing provides a flexible, financially viable solution for meeting growing demand without incurring high debt risks.
  • ACMI Solving Labor Shortages: High attrition rates and pilot shortages have plagued the industry. ACMI leasing enables access to a wider talent pool, addressing the rising costs and staffing challenges.
  • ACMI to Fight Seasonality: ACMI excels in managing seasonal demand and supply-side shocks. Governments and regions are turning to ACMI providers to capitalize on “revenge tourism,” ensuring immediate access to new routes.

Key Takeaway: ACMI can enable airlines to seize the opportunity

The key message of all the things I have mentioned is that ACMI is ready, in both the short-term and long-term, to enable airlines not only to survive but also to thrive in complicated circumstances. The industry is ready to provide the crew and aircraft that are in short supply at present, and to provide airlines with a financially sustainable way to make the most of the upsurge in demand.

My opinion has always been that a balanced mix where 6-15% of a fleet’s aircraft is leased from an ACMI provider is optimal. This provides the flexibility airlines need without tying them down to unmanageable long-term financial commitments, which, as I mentioned above, are especially problematic at present.

Our fleet of 197 planes available for ACMI operations is set up so that 60% are available for long-term leasing, with 40% set aside for short term use. In other words, we are set up and ready to play our part in enabling airlines to survive the current challenges, seize the opportunities that higher demand offers, and be ideally positioned to thrive in the long-term.”

Check out the full article here.

Source: Avia Solutions Group

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Global Aviation Conglomerate Avia Solutions Group Shares 2023 Growth

Avia Solutions Group, the aviation conglomerate which owns global pilot training group BAA Training, has seen impressive growth as shared by its CEO Jonas Janukenas:

  • “Expanding Horizons: Expanding in Southeast Asia and South America remained our main goal, and the establishment of the new companies, BBN Airlines Thailand and BBN Airlines Indonesia, in 2023 already marked a new phase of development in the region. By the end of the upcoming year, we are aiming to have five airline companies operating in various Asia-Pacific countries.
  • Impressive Growth: Our group put in all the effort to meet the rapidly growing demand. By adding 26 aircraft since the beginning of the year, we significantly expanded our fleet, which now consists of 199 passenger and cargo aircraft. This expansion has allowed us to strengthen our position as the world’s largest ACMI provider, now operating a network of 11 AOCs worldwide.

In 2024 we will focus on efficiency, with the strategic goal of widening a network of AOCs and operating 3 service centers and back offices in Vilnius, Riga, and Bratislava, all while emphasizing operational excellence.”

Source: Avia Solutions Group

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