Market Intelligence: -Airline Aircraft Orders

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