Market Intelligence: Far East & China

World’s Largest ACMI Provider and Aviation Conglomerate, Avia Solutions Group, Reports Revenues up 25% to €2 Billion for 9 Months 2024

Dublin, Ireland – Dublin-based Avia Solutions Group, the world’s largest ACMI (Aircraft, Crew, Maintenance, and Insurance) provider, which operates a 221 aircraft fleet in total, split between 183 passenger aircraft and 38 freighters, has announced its financial results for the three quarters of this 2024.

The Group’s revenues increased by 25% to €2,06 billion compared to the same period last year, while net profit also rose to €83,3 million from €70,8 million. The group’s EBITDA for the period stands at €406 million, an 29% increase compared to the same period last year.

Over the first 9 months of 2024, the main revenue-generating regions for Avia Solutions Group were Europe (55,1%) and Asia (27,9%). The Americas, Africa, Australia and Pacific Islands represented 11,8%, 2,7%, and 1,2% of revenues respectively.

Avia Solutions Group has an ongoing strategy of investing in bolstering its capacity to meet the continued strong demand from airlines globally for additional aircraft during their peak seasons. The Group completed the acquisition of Australian based Skytrans in the first half of 2024, bringing the total number of air operator certificates held by the Group to 11 and over the third quarter also established its first AOC in Thailand, Thai SmartLynx. The Group is planning to obtain further air operator certificates (AOCs) in Malaysia, Philippines and Brazil by the end of 2025.

Jonas Janukenas, CEO of Avia Solutions Group said: “Expanding into Southeast Asia and other counter cyclical markets represents a pivotal strategic direction for the group. These regions offer significant growth opportunities and enable us to optimize fleet utilization year-round. By leveraging the robust demand in these markets, particularly during Europe’s off-peak winter season, we can effectively balance seasonal variations, ensuring our aircraft remain active and profitable while supporting our global network and customer needs.”

According to Janukenas, the cargo market has proved challenging in 2024 due to overcapacity. However, the Group anticipates increasing activity in the cargo market in 2025.

To further the Group’s business development initiatives, Avia Solutions Group also successfully issued US$300 million of five-year senior unsecured bonds with a coupon of 9,75% in the first half of 2024.

Testament to investor confidence in the Group’s strategy is the increase of group equity capital by €300 million in 2024. This growth in group equity capital relates to US-based Certares Management LLC, a private equity investment firm which invested into Avia in 2021, electing to convert its preferred shares to ordinary shares.

In November, the Group placed its first direct order for 80 Boeing 737 MAX, split between 40 firm and 40 purchases rights. The deliveries will start in 2030.

Avia Solutions Group offers its services to customers including some of the largest airlines in the world. The group operates in 68 countries around the world and consists of 250+ companies providing a wide range of aviation services like aircraft maintenance and repair (MRO), pilot and crew training, ground handling, and more. The group’s team encompasses 14,000 highly qualified aviation professionals.

Source: Avia Solutions Group
Photo Credit: Avia Solutions Group

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Pilot Training Industry Supplier Feature – True Course Simulation

In this week’s AFM Pilot Training Leadership Interview Series we speak with Brett Watts  – CEO of True Course Simulations, a simulator manufacturer that specializes in virtual reality flight training.

True Course Simulation offers a simple 3-step learning process that includes a pre-flight briefing, interactive simulations, and visual demonstrations of maneuvers.

The conversation covers:

  • Company Evolution and Offerings: True Course Simulations (TCS) provides comprehensive VR-based flight training solutions that include hardware (immersive training devices), software (courseware), and data management tools. Originally focused on military contracts, the company has expanded to serve civilian flight schools globally, prioritizing innovation and efficiency in pilot training.
  • Global Expansion and Partnerships: TCS has established partnerships with flight training organizations worldwide, including recent device deployments to Nelson Aviation College (New Zealand), Embry-Riddle Asia (Singapore), and Sydney Flight College (Australia).
  • Key Trends in Pilot Training: Brett highlighted the increasing demand for efficiency due to rising costs and instructor shortages. Another trend is the growing adoption of automation and VR to supplement traditional training, reducing stress on students and instructors.
  • Impact on Training and Safety: TCS tools improve safety and efficiency by enabling students to master core skills in simulations before real-world training. This approach reduces cognitive overload and better prepares students for complex multitasking in the cockpit.
  • Mission: TCS stands out by offering an integrated system of VR labs, self-guided learning, and performance analytics. The company aims to empower students with confidence and proficiency while supporting partners in modernizing their training systems.

For more information:

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Simaero Highlights Engineer Services for Flight Simulator Upgrades

Simaero, a global leader in aviation training and simulator services, announced its comprehensive suite of flight simulator upgrade solutions. The Simaero Engineering team leverages years of expertise to deliver cost-effective and reliable enhancements to flight simulation systems worldwide. Simaero’s simulator upgrade services include:

  • Regulatory Upgrades
  • Avionics Upgrades
  • Performance Upgrades

Source: Simaero
Photo Credit: Simaero

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Airbus Strengthens Aftermarket Services in China with New Agreements at Zhuhai Airshow 2024

Airbus has signed a bundle of cooperation agreements and MoUs on aftermarket services with its partners at the Zhuhai Airshow. The cooperation covers a wide range of aftermarket services including flight training, Non Destructive Testing (NDT) training and assessment, cabin seat solutions and material services.

With over 2,200 Airbus aircraft in service in China, Airbus and its affiliates have continuously expanded local services to provide best-in-class support for operational safety and efficiency. After more than three decades in China, Airbus has provided services covering the entire aircraft lifecycle from pre-delivery technical support, in-flight operation solutions till the end of life recycling. The cooperation signed during the airshow includes:

  • Flight training: Airbus and the Civil Aviation Flight University of China (CAFUC) have signed a cooperation agreement on developing the Competency Based Training and Assessment (CBTA) Air Transport Pilot integrated training programme and a Letter of Intent (LOI) on the support of subsequent programme implementation and commercial cooperation. This cooperation is in response to new flight training requirements by the Civil Aviation Administration of China (CAAC). It will combine Airbus’ international experience in CBTA development with CAFUC’s local training experience to jointly develop the first CBTA integrated pilot training programme that meets both ICAO standards and CAAC regulations. The cooperation aims to promote CBTA in China’s ab-initio flight training sector. Compared to traditional flight training methods, CBTA can further enhance the fight training efficiency and quality as it places a greater emphasis on the pilots’ performances and competencies. The course development will be completed within the next two years, followed by a trial at CAFUC supervised by CAAC before a wide application. The cooperation will pave the way for the introduction of CBTA training in China and contribute to improve civil aviation safety in China.
  • Airbus, through its subsidiary Testia,  also expands its Non Destructive Testing (NDT) training and assessment in China, both certified by the British Institute of Non-Destructive Testing (BINDT) and the UK National Aerospace NDT Board.

Testia is expanding its worldwide presence with the Airbus’ joint venture with China Hua-Ou Training Co,.Ltd. It will provide  NDT competences  in China, to and through the Hua-Ou’s training facility, contributing  to elevate the industrial standards and support the growing demand for skilled professionals in this crucial field. Testia has been performing  training and assessment in this field for over 30 years, supporting  industrial players  in aerospace manufacturing, assembly, maintenance, repair and overhaul worldwide. With this milestone, Hua-Ou will be the first training hub for Testia in the Greater China region outside the home base in Toulouse, France.

  • Cabin seat power supply retrofit: Airbus subsidiary Eltra signed a Supplemental Type Certificate (STC) engineering service agreement with Colorful Guizhou Airlines. Eltra will provide a customized retrofit solution of cabin seat power supply for the airline’s A320 fleet, including engineering design solutions, retrofit solution implementation and technical support and training. The STC retrofit solution approved by CAAC will enhance the comfort and functionality of the aircraft to better meet the market demand.
  • Material services: Satair, an Airbus Services company, signed agreements on Integrated Material Service (IMS) solutions with HNA Aviation Technic, Xiamen Airlines and China Southern Airlines. Satair’s IMS solution will not only maximise spare parts availability but also optimise stock levels, helping Chinese customers to boost cash flow and improve overall operational performance. Satair also signed a customised spare purchasing program with Juneyao Airlines, offering the customer greater predictability and a heightened service level on a comprehensive scope of part numbers and budget control.

As a key stakeholder in China’s aviation industry, Airbus continues to build its presence and partnerships in this important and growing aviation market to continue supporting its customers.

Source: Airbus
Photo Credit: Airbus

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